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Is the adviser authorised to give financial advice? Make sure that the adviser has the necessary experience of dealing with private individuals and that he (or she) is qualified to give financial advice. There are many self-styled financial advisers, often operating out of obscure locations, whose activities are not regulated. Does he work in the country where your account is based? If not, why not? Is he restricted to giving investment advice or can he help you with banking and other aspects of financial planning? If, as is often the case, your adviser can only advise on investments, he might not be appropriate for your needs. In Switzerland, External Asset Managers such as Invest-Partners may give advice on all aspects of financial planning. Is he a truly independent adviser? In other words, can he select the most suitable product or service for you from the entire marketplace? Otherwise he may be restricted in what he can offer you. Does the institution he represents sell their own investment funds or other products? If so, there could well be a conflict of interest. Can you be sure that he will keep details of your financial affairs confidential? In Switzerland, for example, everyone working in the banking industry is obliged to obey the strict laws on banking secrecy. Is he the person who will look after your banking and investment matters? Be wary of agents and others who do nothing more than introduce you to a bank or financial adviser in return for a fee. Do they have your best interests at heart? Have you been told how easy it is to obtain consistently high investment returns, year after year? Or how to double your money within a short time without risk? In the financial services industry this is always a warning sign. “If it sounds too good to be true, it usually is” is a rule you should always observe. Many investors have lost money over the years by believing that it is possible to earn high returns without taking risks. This simply is not true – otherwise everybody would be rich! Will the adviser have full access to your money, in other words will he be able to transfer money out of your account without your authority? This is another sign of potential trouble. Handing your money directly to an adviser, or giving him a full Power of Attorney over your account, exposes you to the risk of fraud. A reputable adviser should never need direct control of your assets. |
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| Japanese | German | Spanish | International copywriting & localisation by: Jt/WIP |
