Checklist for Choosing A Financial Advisor in UAE

Planning your finances is like planning for a journey. You have a destination in mind, have an idea but you need to plan out the finer details. Financial advisers with their experience and expertise can make this journey hassle-free for you. An ardent advisor can guide you to meet your financial goals, help with bookkeeping services dubai and steer you in the right direction. 

If you are an expat in the UAE expats, you may need to choose a financial advisor wisely. When on a lookout for a financial adviser you can trust with their savings, be cognizant. 

Finding a financial adviser for bookkeeping services may not be a cakewalk since the market is flooded with agents who could dupe you in their keenness of earning commissions. 

Financial planning involves maximizing the money you earn, investing for growth and stability, setting money aside for your long term ambitions and sometimes just juggling your finances to meet all your expenses. Not every financial adviser claiming to be the best in the UAE has skills and experience apt for your requirements.

When doing your research, make sure to check all the following points qualities:

Professional qualification

Ensure your financial adviser in UAE has suitable qualifications. Good financial advisers take pride in their professional development and would heartily show you their achievement. An under-qualified financial adviser may try to evade the question and try telling lies. Listen carefully, and read between the lines to be doubly sure.

The Financial advisers should have a Certificate in Financial Planning from the UK Chartered Insurance Institute. If a person is a Chartered Financial Planner, then it is evident that the personnel is qualified and knowledgeable. In the UAE, excluding DIFC, there is no mandatory rule for an adviser to have financial qualifications. As a result, many financial advisers are operating without the right qualifications.

Following are the most recognized qualifications you should look out for :

Chartered Insurance Institute – CII is a well-known accreditation institution in the UK for financial planners and brokers.

Chartered Institute of Securities and Investments – CISI puts more emphasis on investment and is the preferred choice for wealth managers and investment managers. CISI is a mandatory requirement for advisers regulated by the SCA, this includes passing an exam specifically created for the UAE market.

CPF Board – Being a Certified Financial Planner is a feather in the hat of a financial adviser. 

If you happen to come across an advisor that is ‘chartered’ then this implies the personnel hold necessary certifications and qualifications.

Most financial advisors have their area of specialization like an investment, bookkeeping services dubai, mortgage, insurance, etc. You must seek a qualified advisor in the areas you need the most help in. 

Independent or tied

A financial advisor could operate in two types, independent or tied-up. An independent adviser can recommend financial products and services offered by another provider. A financial advisor or agents with tie-ups tend to recommend products of only a single provider. However, multi-tied agents or financial advisors can discuss products and services from more than one provider but not the whole market. If you have a large portfolio its best to opt for an independent adviser.

How much does financial advice cost?

Most tied-up financial advisers earn commission by the institute that they recommend, hence they charge you lesser. However, on the hindsight, it’s still paid by you

Independent financial advisers do not accept the commission on products they recommend, and they charge you directly instead. This can be a fixed fee, an hourly charge or a percentage of money which they will manage for you. A fixed fee is the best option as the charge is not open-ended. Discuss the nature of the fee upfront to avoid confusion later on. 

Advisory process

An independent financial adviser based on his knowledge and experience collated and presents options that best suit your goals. The advisor analyzes your current financial position, and research the market for products best suited as per your needs. the advisor chalks out a solid plan specific to your requirements and presents the same to you. 

Reliability

The relationship you have with your financial adviser is likely to be long termhence it is essential to build trust and mutual respect. Do not be afraid to say no to your adviser. Pay attention to finer details like the behavior of the advisor, does he have a clear explanation, is the person on-time every time, does he listen well, does he have a good track record and client references, to make a wise choice.