Considering the Leading Points When Choosing a Financial Advisor in the UAE

Choosing a Financial Advisor

You may think only wealthy people need the services of a financial advisor. However, irrespective of the financial status, everyone needs a financial mentor to protect their hard-earned money, invest wisely, and build assets keeping their and their family’s future in mind.

Earning a good amount of money and knowing how and where to invest isn’t something everyone is good at. This is where the services of a sound financial advisory firm come into the picture. And if you’re an expat in the UAE, hiring the services of an authorized financial advisor plays a key role in securing your finances and your future.

Financial Advisor Services in the UAE

There are over a staggering 58,000 people working in the financial sector in the UAE, and choosing an authorized financial advisor can be a daunting task. If the vast pool of financial advisors isn’t enough, duping expats with a commission-backed system adds to growing financial concerns. Your financial future is at stake and choosing the right financial consultant to navigate several obstacles calls for a thoughtful approach.

The unsolicited cold calls from several financial agents and firms make things more difficult for an expat living in the UAE.

If you’re living and earning in Dubai, its advisable to be ruthless when skimming for a financial expert who is trustworthy. There are several points to consider, and knowing fees are paid upfront and not on a commission-basis alone is just the tip of the iceberg.

Always remember that a financial counsellor is a partner whom you can trust blindly, but that trust depends on quite a few qualities of the financial expert. So, how will you decide if the individual is authorized to handle your finances and investments that prove beneficial in the long run?

We take a closer look at the subject to help you address your financial concerns without hassles.

Key Points for Consideration

Your financial planning in Dubai calls for a deliberate approach, keeping a close perspective on the nitty-gritty of the dynamic sector. Take a practical view of your financial situation and measure it against your financial goals to chart the best possible financial plan that works wonders.

To begin with, it’s advisable you hire the services of a financial advisor who is registered with the International Chartered Institute or the local government.

Are They Licensed?

There are three chief financial regulators in the UAE to be aware of, and they cover various areas. The Dubai Financial Services Authority caters mainly to financial-free zones. The Insurance Authority regulates insurance companies, brokerages, and insurance-based products. The Securities and Commodities Authority oversees investments, traders, and stockbrokers.

Ensure your financial counsellor is licensed by at least one regulator. Otherwise, you’ll not be able to make a formal complaint or seek other help if you deal with an unlicensed financial company.

Are They Qualified?

It’s mandatory to know your advisor’s qualifications because unauthorized advisors dodge your questions. Always check out for the following qualifications personal financial advisor Dubai has to offer:

  • Chartered Institute of Securities & Investments
  • Chartered Insurance Institute
  • CFP Board

These are only a few evaluator bodies that are widely recognized in the UAE. However, if you find n advisor who is chartered, it’s the highest qualification to consider.

Are They Credible?

Research your financial advisor online to get a clear picture of their reputation. Check out their LinkedIn profile or browse Profezo which lists only qualified advisors. It’s also vital you check the company website they’re working for before making a decision. Collecting customer reviews also pays handsomely.

What Services They Offer?

An important aspect of your financial planning in Dubai includes the services your financial mentor can offer. It depends on what you’re looking for since some advisors provide only a specific service. Some advisors offer only investment plans, while others offer comprehensive financial planning that includes investment, insurance, education planning, tax planning, and retirement. Always choose an advisor who can meet the specific needs of you and your family.

Do They Charge an Upfront Fees or Commission?

Remember that financial planners and advisors in the GCC can take commission that is undisclosed and hefty. It’s vital they disclose their fees fully, and not dupe you into paying high a commission. Ask the advisor how much their company keeps, and how much you have to pay. Always look for transparency.

What is the Product and Fund Charges?

A personal financial advisor Dubai offers you typically offers charges that comply with authorized financial bodies. While most plans are pretty expensive, you should as your advisor how much you’ll be charged for a particular service. There are ongoing charges and a total expense ratio. Ensure your TER doesn’t cost you more than 2.5 percent which can otherwise eat away your returns.

How will the financial advisor proceed?

Your financial advisor should prepare a comprehensive presentation based on the information you give. It should cover the minute details and the major financial goals that include you and your family. Your advisor should also meet you once or twice a year, and this should be in writing. Watch out if your advisor tries to manipulate you since you don’t know most of the financial terms. Always cross-check and seek regulatory bodies guidance.

The Takeaway

Choosing the right financial consultant may be a tedious task, but the effort is worth every penny you earn. You cannot transfer the job of handling your finances to anyone, but only to the best of the lot. Be patient and show persistence throughout the process of finding the perfect financial counsellor in the UAE.