What Should I Look for in a Financial Adviser in Dubai?

Dubai is arguably the most exciting region in the world with so many opportunities for personal success and individual growth. The quality of life is second to none, you will enjoy a fascinating culture and the added benefit of beautiful weather. With historically plenty of jobs for expatriates, you can improve on your career and acquire wealth and status. However, it is vital to have a grip on your finances and not squander your tax-free salary and wealth.

A Dubai based respectable and experienced financial adviser can ensure you have secured a nest egg when you move back to your home country or retire. How do you find a genuine adviser in Dubai? There are many scammers and unscrupulous fraudsters in the financial industry, and you need to be cautious when seeking financial advice. Below are factors to consider when looking for an adviser:

How Financial Advisors Are Regulated in Dubai

Taking good advice can improve your financial health and make you retirement-ready before you leave the UAE. However, we all know that money attracts all kinds of crooks. If you are new in Dubai, it is common to receive cold calls or offers from professionals lurking in bars and expat communities. While they may appear professional, their goal is to prey on unwary expats and make commissions. Fortunately, you can find some excellent and highly experienced financial advisers in Dubai that are regulated via the local regulatory bodies.

In the UK, financial advice firms are under the regulation of the Financial Conduct Authority. The body has significant guidelines for advisers, and it can enforce its authority through criminal prosecution and banning advisers. Consumers can also rely on the Financial Services Compensation Scheme and the Financial Ombudsman Service.

In Dubai, three regulatory bodies oversee financial services. Expats need to be aware of their existence and the areas they cover.

Insurance Authority

The popular regulator oversees insurance companies, insurance brokerages, and insurance products. However, it does not regulate health insurance. The authority lacks an external dispute resolution service, and if a firm collapse, it does not provide a compensation scheme. You can check their online register for companies regulated by the body.

Dubai Financial Services Authority

The body regulates financial services provided within the Dubai International Finance Centre. Apart from overseeing advisers and their firms, DFSA has dispute resolution services that handle complaints from customers. However, they only operate within the financial free zone and lack a compensation scheme for consumers.

Securities and Commodities Authority

The SCA is an independent body that is in charge of the investment industry. It monitors and provides guidelines for investment advisers, fund houses, and investment brokers. The body lacks an external dispute resolution service or a compensation plan to protect its customers.

Sometimes the roles of the regulators can intertwine, and there is no clarity on their principal responsibility. However, selecting a licensed firm from the above will stand you in good stead. If their name appears on one of the registers of the three bodies, you are assured of professional advice. Besides, if you choose an unlicensed adviser, you will not seek redress or make formal complaints if they mislead you.

Factors to Consider When Picking an Adviser in Dubai

While there is no foolproof formula of picking a trustworthy adviser, knowing what to look for narrows your options. Personal recommendation is a good place to start, but you still have to do your homework to know if the adviser is the right fit. Before you make the final decision, here are a few considerations to keep in mind:

Credentials and Qualifications

A financial adviser should help you map your financial journey. Their role is to dig deep into your spending habits and free-up money for savings and investments. They should also guide you on retirement, pension, and ways to build your wealth. Therefore, they must have relevant qualifications from recognized institutions to provide advice. No one goes to a doctor or a lawyer without professional qualifications, so you should not entertain advisers without credentials. Since most advisers will have a professional site and social media pages, you can read reviews.

Trust and Transparency

A financial adviser provides advice for as long as you want. If you are uncomfortable discussing your financial matters or have any doubts, it is a sign of mistrust. Since the advisor is the custodian of your cash, there should be utmost trust and transparency. Financial advisers often establish trust by providing details of their services. That way, the customer understands the services they are getting and the related charges. Stay away from advisers who try to sell you investment options because they are just getting a commission.

Holistic services

As an expat, you need guidance on how to deal with your finances in your home and expat country. That includes savings, investments, pension schemes, mortgage, and assets. Therefore, it is prudent to find a professional that can offer all the services you need instead of paying for two advisers. You will also have additional benefits if your financial adviser has access to banks, funds, lenders, and other services that you may need.

Cost

Financial advice in Dubai can be via commission-based or transparent fee. While some commission-based advisers are keen on making sales, many are highly experienced and offer genuine long-term advice.

Apart from the above factors, you can find further insights into the values of an excellent financial advisor and tips for choosing the best by downloading this brochure.

Financial Advice Companies in Dubai

There are hundreds of financial firms in Dubai and picking the best can be confusing. You should rely on a reputable firm and adviser with years of experience in providing financial advice. When you choose a larger firm, you can take advantage of the extra services they offer and exclusive deals. Most of them have access or agreements with banks, lenders, investment houses and insurance providers. Therefore, you can benefit from these collaborations and services that are unavailable in smaller firms.

Irrespective of the financial adviser you choose, they should act like fiduciaries and in your best interest. Advisers must be trustworthy and provide accurate advice.

About Mike Coady

Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.

Mike is an award-winning money coach and industry leader in the financial sector.

Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.

To learn how to choose a great financial adviser, download our free guide.

For more insights, further advice or guidance, you can get in touch HERE or contact us on 00971 52 286 5653.

Blog published by Mike Coady.