Financial Advisor in the UAE: Key Considerations to Select the Best

May 20, 2021

Planning for a financial future is like planning for a trip. You have the perfect destination in mind but don’t have the right approach to work on the finer details. Financial advisors have strong expertise in making your financial planning journey completely hassle-free. An ardent financial advisor can guide you to meet your monetary objectives and steer you the correct way. 

As an ex-pat in the UAE, you will be generally very acquainted with the spontaneous cold calls from financial services companies. In case you're not, you're fortunate. Actually nonetheless, that we as a whole need some type of monetary assistance eventually in our lives, regardless of whether it be a financial balance or protection strategy – the time will come. 

Financial planning includes boosting the cash you acquire, investing for growth and financial stability, saving cash for your drawn-out ambitions, and in some cases simply shuffling your accounts to meet every one of your costs.  In case you're not open to doing it without anyone else's help or it just is unimaginable, you can hire the services of an independent financial adviser to help. But choosing a financial advisor is one of the more troublesome tasks. In the event that the decision is made effectively, the advantages are limitless. However, in the event that the decision ends up being incorrect, the outcomes can be unfortunate in terms of finances. 

Below are some tips that are proposed to help you recognize, assess, and pick a financial advisor that knows about the issues you face as an investor and can assist you with accomplishing your monetary objectives.

1) Is the Financial Advisor Working In An Authorized Company?

It is vital to gain complete knowledge about the fundamental controllers in the UAE that cover various areas. These are: 

Insurance Authority – This authority is liable for directing all insurance agencies in the region, insurance brokerages, and insurance-based products. However, this does not include companies that offer health insurance.

Security & Commodities Authority – Fund advisors, stockbrokers, traders, and investment advisers are regulated by these authorities. 

Financial Services Authority – This is the best authority in terms of consumer protection and organization. This authority mainly regulates the free zone companies. 

Before selecting the advisor, it is necessary to ensure that he/she is licensed by any of these authorities. Always look for an advisor who is working for a licensed company so that you don't end up wasting your time & money too. 

2) Is the Financial Advisor Certified & Experienced? 

Try not to fear requesting to see the certification. A decent financial advisor invests heavily in gaining certification & experience and will jump at the chance to show you their accomplishments. So that you're prepared, these are the most perceived qualifications you should pay key concern to: 

Chartered Insurance Institute 

Chartered Institute of Securities & Investments

CFP Board

3) Check the Client Reviews

It is good to check the profile of financial advisors available online to get an idea about their profile & reviews from previous clients. This helps in knowing how trustworthy & reputed the professional is. 

4) Know About the Service Cost

There are usually two types of financial advisors working in the UAE - Fee-based & Commission based. It is, however, suggested to look for a financial advisor that works on the basis of the fee. Choosing a fee-based financial advisor will give you peace of mind that you will pay for the agreed deliverables and the ongoing service. These fees vary from company to companies, thus it's important to contact different advisors before selecting anyone. 

5) Know About Their Advisory Process 

An independent financial advisor will gather some information related to your family, financial goals, financial position before recommending anything. Once you are fully satisfied with the recommendation that your consultant has provided, it is a must to review your financial plan at least once a year. The process toward offering financial advice is a discussion so you ought to hope to be posed loads of inquiries. Be careful about sales reps with a plan that may attempt to utilize scare tactics and fancy diagrams to drive you into an authoritative speculation or investment funds plan. 

Concluding Thoughts:

Basem Barry, CEO of B A Barry says that following these valuable tips will help you find a moral, equipped, experienced financial advisor who will keep your financial interests utmost in the relationships. Recall that you worked hard to earn this money before surrendering your monetary future to an outsider. It is your cash, and spending the effort and time to pick the best financial advisor is the most ideal approach to ensure it.