Financial Advisors
Feb 16th 2011, 7:19 am
#16
BE Forum Addict
Joined: Nov 2009
Posts: 3,096
Re: Financial Advisors
Serious Q
How do Financial Advisors usually charge? Is it quite transparent and 'by the hour' like sols or do they get a fee per investment taken as payment?
How do Financial Advisors usually charge? Is it quite transparent and 'by the hour' like sols or do they get a fee per investment taken as payment?
Feb 16th 2011, 7:33 am
#18
Lost in BE Cyberspace
Thread Starter
Joined: Aug 2009
Location: Disneyland, Dubai
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Feb 16th 2011, 11:21 am
#19
BE Enthusiast
Joined: Oct 2010
Posts: 547
Re: Financial Advisors
Actually, of the few I have met (here and in UK), most do tell you if you ask - and those I've met over here have told me up front that they work on commission. The trick is to check, as you go, what commission they get on each plan they are suggesting, and to find trustworthy IFAs by asking around colleagues, friends etc. You'll have noticed that Meow is regularly recommended on this board, though who knows if she is paying commission for all those recommendations...!
Feb 16th 2011, 11:24 am
#20
Lost in BE Cyberspace
Thread Starter
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: Financial Advisors
Actually, of the few I have met (here and in UK), most do tell you if you ask - and those I've met over here have told me up front that they work on commission. The trick is to check, as you go, what commission they get on each plan they are suggesting, and to find trustworthy IFAs by asking around colleagues, friends etc. You'll have noticed that Meow is regularly recommended on this board, though who knows if she is paying commission for all those recommendations...!
The issue is those that sell long term plans. Ask them to explain their commission structure. Few will be able to, and even fewer be willing to...
Feb 16th 2011, 6:51 pm
#21
Forum Regular
Joined: Mar 2007
Posts: 71
Re: Financial Advisors
Meow has been very helpful to us so far and we are having a meeting with her next week in Dubai. She seems very professional
Feb 20th 2011, 9:07 am
#22
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Financial Advisors
Actually, of the few I have met (here and in UK), most do tell you if you ask - and those I've met over here have told me up front that they work on commission. The trick is to check, as you go, what commission they get on each plan they are suggesting, and to find trustworthy IFAs by asking around colleagues, friends etc. You'll have noticed that Meow is regularly recommended on this board, though who knows if she is paying commission for all those recommendations...!
Also, for the record, I will work on either a commission or fee basis, depending on the circumstances and what a client wants.
Emirates Millhouse - special??!! That can be taken so many ways...
Mar 1st 2011, 5:04 pm
#23
Just Joined
Joined: Mar 2011
Posts: 8
Re: Financial Advisors
Actually, of the few I have met (here and in UK), most do tell you if you ask - and those I've met over here have told me up front that they work on commission. The trick is to check, as you go, what commission they get on each plan they are suggesting, and to find trustworthy IFAs by asking around colleagues, friends etc. You'll have noticed that Meow is regularly recommended on this board, though who knows if she is paying commission for all those recommendations...!
I just wanted to clear up one point here about commission. In the UK the advisor must tell the client how much you will earn from whatever plan you go ahead with, the FSA is very clear on that and obviously if the client is not happy there is a certain amount of recourse available to them.
The UAE is a unregulated, as mentioned before, and to get good financial advice must seem a millions miles away to any person without the right financial background. They key to finding a good advisor in the UAE is simple.
Recommendations from others are always good but you must go one step further.
Educate yourself.
Has the company i'm dealing with got both licenses
1. Licenced and regulated by UAE bank
2.Licenced and regulated by ministry of economy
(this means you have a certain amount of recourse if you are not happy)
If the advisor cannot educate you to understand everything about the product so that you are comfort with it, get a second opinion.
Problem is that the long savings plans are misrepresented and clients are being led down a road in which they never would have gone. (which is access to their money)
ALWAYS ASK QUESTIONS.....if you understand and it matches your needs it then go ahead. If you don't go to step 1 above
Advisors here are not obliged to say how much they will earn from a product, its normally paid by product providers anyway and the commission is very much the same from provider to provider, if they really wanted to know i would tell them but this would make no difference. The commission paid would cost the client the same if he/she did it on her own (thats why you have a professional do it for you)
I hope this helps a little
Mar 1st 2011, 5:41 pm
#24
Confirmed grumpy old man
Joined: May 2005
Location: Moved back to Riyadh KSA 2016
Posts: 1,298
Re: Financial Advisors
Hi, i'm new to the forum but not new to finacial advice and I found this thread very interesting. I am a UK qualified financial planner (cert pfs) for 6 years and here working in dubai, 2 years.
I just wanted to clear up one point here about commission. In the UK the advisor must tell the client how much you will earn from whatever plan you go ahead with, the FSA is very clear on that and obviously if the client is not happy there is a certain amount of recourse available to them.
The UAE is a unregulated, as mentioned before, and to get good financial advice must seem a millions miles away to any person without the right financial background. They key to finding a good advisor in the UAE is simple.
Recommendations from others are always good but you must go one step further.
Educate yourself.
Has the company i'm dealing with got both licenses
1. Licenced and regulated by UAE bank
2.Licenced and regulated by ministry of economy
(this means you have a certain amount of recourse if you are not happy)
If the advisor cannot educate you to understand everything about the product so that you are comfort with it, get a second opinion.
Problem is that the long savings plans are misrepresented and clients are being led down a road in which they never would have gone. (which is access to their money)
ALWAYS ASK QUESTIONS.....if you understand and it matches your needs it then go ahead. If you don't go to step 1 above
Advisors here are not obliged to say how much they will earn from a product, its normally paid by product providers anyway and the commission is very much the same from provider to provider, if they really wanted to know i would tell them but this would make no difference. The commission paid would cost the client the same if he/she did it on her own (thats why you have a professional do it for you)
I hope this helps a little
I just wanted to clear up one point here about commission. In the UK the advisor must tell the client how much you will earn from whatever plan you go ahead with, the FSA is very clear on that and obviously if the client is not happy there is a certain amount of recourse available to them.
The UAE is a unregulated, as mentioned before, and to get good financial advice must seem a millions miles away to any person without the right financial background. They key to finding a good advisor in the UAE is simple.
Recommendations from others are always good but you must go one step further.
Educate yourself.
Has the company i'm dealing with got both licenses
1. Licenced and regulated by UAE bank
2.Licenced and regulated by ministry of economy
(this means you have a certain amount of recourse if you are not happy)
If the advisor cannot educate you to understand everything about the product so that you are comfort with it, get a second opinion.
Problem is that the long savings plans are misrepresented and clients are being led down a road in which they never would have gone. (which is access to their money)
ALWAYS ASK QUESTIONS.....if you understand and it matches your needs it then go ahead. If you don't go to step 1 above
Advisors here are not obliged to say how much they will earn from a product, its normally paid by product providers anyway and the commission is very much the same from provider to provider, if they really wanted to know i would tell them but this would make no difference. The commission paid would cost the client the same if he/she did it on her own (thats why you have a professional do it for you)
I hope this helps a little
Mar 1st 2011, 5:44 pm
#25
Confirmed grumpy old man
Joined: May 2005
Location: Moved back to Riyadh KSA 2016
Posts: 1,298
Re: Financial Advisors
I can vouch for Meow.
Very knowledgeable, helpful, honest, trustworthy and personable to boot!
Oh yes, and classy!
Very knowledgeable, helpful, honest, trustworthy and personable to boot!
Oh yes, and classy!
Mar 1st 2011, 5:59 pm
#26
Forum Regular
Joined: Mar 2007
Posts: 71
Re: Financial Advisors
i thought Meow was great when me saw her last week so she gets another vote here.
Mar 2nd 2011, 3:26 am
#27
banned
Joined: Oct 2008
Posts: 7,611
Re: Financial Advisors
Norm and Meow are recommended by me and my family. (not that that makes a jot of difference, we aint exactly posh and becks)
but i have dealt with them both and they are fantastic.
guys, deposit the cash in the usual place, cheers.
but i have dealt with them both and they are fantastic.
guys, deposit the cash in the usual place, cheers.
Mar 2nd 2011, 4:14 am
#28
Just Joined
Joined: Mar 2011
Posts: 8
Re: Financial Advisors
as long as you are happy with your products and they meet your objectives everything is fine with the advisor.....peace of mind goes a long way but a 25 year savings plan goes painfully even longer!!!
Last edited by slimfynn; Mar 2nd 2011 at 4:23 am.
Mar 2nd 2011, 4:33 am
#29
Just Joined
Joined: Mar 2011
Posts: 8
Re: Financial Advisors
Mar 2nd 2011, 4:36 am
#30
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Financial Advisors
And central bank licences (which have not been available for years) are more for stockbrokers. Most IFA firms here are correctly licenced by the Ministry of Economy and as required by law have substantial professional indemnity insurance and a very large deposit with the Insurance Authority.