Fraser Mackinlay (Middle East) Limited is this year, celebrating a decade of providing financial services in Cyprus.
So what is a financial advisor? Do you need one and more importantly, how do you find the right one?
A financial adviser should be exactly what the title describes – a person who can advise on financial matters. However, there are other factors to consider when choosing your financial advisor and these are highlighted below.
Are they situated in Cyprus?
Having your adviser situated in the same country as you is a definite plus. You can see them at any time, you can take comfort from the fact that you see signs of the company’s presence on a regular basis and importantly the company’s regulator is in Cyprus. Living as an expat can be confusing in the financial world. Tax laws in your new country of residence may be different from the UK, but some, like UK inheritance tax can still apply. Investments which were tax efficient in the UK such as PEPs and ISAs are not so in Cyprus. Make sure your advisor is aware of your tax situation where you are resident.
How long has the company been providing financial advice?
In the fickle world of offshore finance advisors come and go. This is not what you want. You want to know that the company that you choose to appoint as your advisor is committed to being around for the long term. A good indication of this is how long they have already been in existence in Cyprus.
Background, education and experience
Find out as much as possible about the person offering the advice. How long they have been advising on financial matters, what type of products and services are they experienced in providing advice on.
Relevant benchmark qualifications
There are several approved financial planning and investment qualifications ranging from basic through to comprehensive levels.
However, qualifications cannot be viewed in isolation, and hands-on experience is essential. A financial advisor with many years’ experience is going to be more able than someone who has passed the appropriate exam but has no real experience.
References from their existing clients
Financial advisors provide a highly confidential service to their clients and it is expected that many clients may not wish to be known, but there is nearly always some client who is happy to provide a reference.
How they keep up with new legislation and products
Financial advisory companies should provide in house training to their advisors and keep up with existing and new product information and legislatory matters. This has become even more important with Cyprus joining the EU and in particular the introduction of the EU Savings Directive.
What is the quality of the products they promote?
No advisor can see into the future and guarantee a certain performance of a particular investment. They can ensure that the investment is from a reputable institution and jurisdiction. Many of the product providers are based in jurisdictions such as Isle of Man, Channel Islands, Dublin and Luxembourg – all of which offer the investor comfort via their strong regulation, political and economical stability and in some cases investor protection schemes. This applies to several other jurisdictions also.
Are they regulated/licensed and by which body?
All Financial Advisors in Cyprus should be authorised by The Central Bank of Cyprus or the Securities and Exchange Commission. If they are not then find one who is.
Your own instincts
Just because a person is likeable, it does not automatically make them sufficiently qualified to offer you financial advice, but if you ask the above questions and are satisfied with the answers, then the final choice will no doubt be influenced by the rapport between you and the advisor.
Once you are comfortable with your decision then the financial planning can begin. However, you must assess on an ongoing basis the advice that you are receiving. A good advisor will give his/her rationale for making changes to your portfolio, if you are not informed of these changes when they happen you should have the opportunity to discuss them at each valuation date or at your regular meeting.
If your advisor cannot give you a reasonable explanation of his motives for changing the investments then find one who can!
You are the client; the ultimate decision of what happens to your investments is yours and yours alone. We believe that we meet all of the above criteria, if you need a financial advisor give us a call and check us out for yourself
n Mrs. Vivian Nagel, MSI, Fraser Mackinlay (Middle East) Limited, Tel: 25-580810 or Mobile 99-579149, Fax: 25-875090, email: [email protected], website: www.frasermackinlay.com
