# financial advisers



## ian731 (Dec 17, 2008)

Anyone got any information regarding reliable and trustworthy financial advisers in Dubai. Have had a few phonecalls from companies but would like to hear any comments before making a commitment to any of them.

Thanks for your help.


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## mojoboy7 (Feb 1, 2009)

ian731 said:


> Anyone got any information regarding reliable and trustworthy financial advisers in Dubai. Have had a few phonecalls from companies but would like to hear any comments before making a commitment to any of them.
> 
> Thanks for your help.


The best you can do is to get an expert financial adviser from a good bank and an independent advisor from outside the bank. why? because most of the banks have a wide array of financial products to choose from plus you get a free financial advise on real estate. Advisor from outside the bank can show you data comparisons from different institutions. You just have to research on the more established ones from friends within UAE and through the net.


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## Elphaba (Jan 24, 2008)

I bet I can tell you which companies have called you too...

Sadly there is little regulation here and negligible compliance, so you have to be extra vigilent. I am an Independent Financial Adviser with over 15 years experience in the UK, before moving here a few years ago. Unlike most I have a full range of qualifications, including advanced and specialist ones. 

You should check that any adviser has both qualifications and experience and that they actually want to advise, rather then sell. Only deal with independent ones, as we have access to all providers rather than those who work for one company (including banks) who can only offer a handful of products. A good adviser will work on either a fee or commission basis.

I suggest you avoid any company that has to tout for business in that way. They do not have good reputations. The brokerage I am associated with is the only one in the UAE where all advisers are qualified. I never cold call anyone and my clients are all referred to me.

I hope that helps.


Build a future while abroad - The National Newspaper

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## ian731 (Dec 17, 2008)

Thanks for the information -- the contact came as the result of a referral so not quite the cold calling. We met a representative who gave what seemed good advice and the opportunity to earn a better return on investments than possible in the UK plus options to unlock pension funds by transferring offshore. All very professional but we need to be sure of the company's standing before handing over a substantial amount to them, hence the post. Research so far has turned up a mixed response on the web so I guess its a case of "caveat emptor".

Further comments would be much appreciated.


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## Elphaba (Jan 24, 2008)

ian731 said:


> Thanks for the information -- the contact came as the result of a referral so not quite the cold calling. We met a representative who gave what seemed good advice and the opportunity to earn a better return on investments than possible in the UK plus options to unlock pension funds by transferring offshore. All very professional but we need to be sure of the company's standing before handing over a substantial amount to them, hence the post. Research so far has turned up a mixed response on the web so I guess its a case of "caveat emptor".
> 
> Further comments would be much appreciated.


Hmmm. I would be wary of anyone who offers returns that are higher than those possible than in the UK as that statement is simply not true. I would also be wary of an 'offshore pension'. If they mean QROPS take care as HMRC has a major issue with these and the charges (which are unlikley to be disclosed to you) are VERY high. They are certainly not suitable for everyone.

Please ensure that this adviser has the expereince and qualifications to handle this type of business. Be aware that you like little legal come back if things go wrong.

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## Lee1971 (Mar 14, 2009)

ian731 said:


> Thanks for the information -- the contact came as the result of a referral so not quite the cold calling. We met a representative who gave what seemed good advice and the opportunity to earn a better return on investments than possible in the UK plus options to unlock pension funds by transferring offshore. All very professional but we need to be sure of the company's standing before handing over a substantial amount to them, hence the post. Research so far has turned up a mixed response on the web so I guess its a case of "caveat emptor".
> 
> Further comments would be much appreciated.


1. If he/she did a successful bulling job on your friend then they are bound to refer you for a 25 year savings plan!!

2. That is just ridiculous, there is nothing the monkey can offer you that you could not have invested in in the UK.

3. Anyone that says you can unlock your UK pension should be avoided like the plague, your setting yourself up for some very tasty tax consequences Ian. International pensions meet the needs of the few - foreigners working in UK who *will* retire outside UK mainly, brits if they retire overseas and will absolutely *definately* not return.

My guess if you've spoken to 'world retina' or in spannish 'I will see"???

If you part with your cash to these people you are crazy, good luck


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## ian731 (Dec 17, 2008)

Thanks again for information. We were unsure about the pension being transferred overseas, is was made to sound very simple and no problem, alarm bells straight away. Did not realise that you could not then return to the UK.


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## Lee1971 (Mar 14, 2009)

ian731 said:


> Thanks again for information. We were unsure about the pension being transferred overseas, is was made to sound very simple and no problem, alarm bells straight away. Did not realise that you could not then return to the UK.


If it sounds too good to be true.........

Think about it logically, you pay into a pension whilst working in the UK, you get 40% tax relief on your contributions, then when you retire you can get out 25% lump sum and a taxable income for life - simple. However, before retirement you work overseas for a short while, meet someone in a nice suit from Globaleye or De Vere, you transfer your pension fund to an International scheme based in Singapore or Hong Kong, and get all your money out tax free......oh yeah HMRC will be well up for that!!!

If you use a Channel Island based scheme then it is not quite the same as they offer benefits on a like for like basis, so as I said before it may be the right advice for a small proportion of people. There are also IOM schemes, but suitability is even more rare, as Manx tax is deducted at source when the pension is in payment, and as IOM has few double taxation treaties, you may end up paying more tax when you retire.

If however you are UK resident when you take the benefits, you would be well and truly spanked by the tax man, its not that you are unable to return, but if it is even remotely possible, don't take his advice. The general rule is that you have to be outside the UK 5 complete UK tax years before taking benefits. The clock starts ticking when you leave, not when your pension is transferred, so what s the rush other than commission to the adviser.

As for fee's, well that varies from the research I have done. From what I hear about the 'advisers' at forementioned companies, they rack them up in stealth fee manner - charge for pension transfer, commission from underlying investment and so on, double fee taking, very naughty but seems to be what happens in UAE. The actual scheme fee's are not that onerous, but again vary and will depend on the size of your pension.

One of my good friends back home in Jersey is a Trustee of an International Pension scheme, and I have warned him not to accept business from here, or at least be very vigilant, as if they are lied to by the brokers and the scheme rules are abused, his pension can be closed down by HMRC - and he is an honest genuine guy that is doing this for the right reasons, and it only takes one lying idiot to close this part of his business!!

Example recently - they received applications on behalf of a Brit living in Cyprus with a UK pension. Instructions were that client had lived in Cyprus for 7 years, wanted to take out 25% tax free then drawdown the income - sounds good, no reason to doubt. However, wanting to ensure they do everything correctly made enquiries - contacted the previous pension provider who advised 25% tax free cash already taken (the broker told the client you were allowed to take it out twice!) made further enquiries of HMRC and according to them the client was non tax resident for just 2 years! 

So client paid 5% fee to the broker to transfer the pension, invested couple hundred thousand in an investment bond which would have paid another 6 or 7% commission, 0.5% p.a to the new pension trustees, and if he wanted the income would have to pay top rate UK tax - good advice hey!!


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## wikkid (Mar 13, 2008)

UK Based Independant Financial Adviser here,
I would say that you should only deal with someone who is independant. If they are honest and above board, then they will be willing to work on a fee basis, and not accept any commission from anywhere. That way, you can be rest-assured that they are working in your best interests and not choosing products to suit them or their commission rates. An example can be that they take a set commission rate from your investment, but this is fully open and explained in advance, with the exact amounts made clear. 
No double charges should be taken either, if earnings are taken from the pension for example, then any money invested into a bond should be free of charge.
As for investments that are not possible in the UK, this can only be because the products/ funds are not allowed for consumer use in the UK. If this is the case, then guess why not?? Any adviser can set up an offshore bond from any of the reputable providers and have access to exactly the same investment choices, whether based in UK or anywhere else.
The QROPS scheme can be a good choice, but only if used for the right reasons, which sadly is not very often. More frequently the 'get all of your cash out after 5 years' is the main selling point. As said in a previous post, ALL Singapore based schemes have been kicked out of the authorised list from HMRC because of them operating outwith the rules. I have had dealings with the same Channel Islands based scheme mentioned earlier, and they operate well within the rules and do not offer the 100% tax-free cash etc, thus they are still on the HMRC list. 
HMRC are not nice to deal with when rules have been broken, and they retaliate by taxing heavily those who they catch (watch out if you go for a QROPS for the wrong reasons and return to the UK!!, tax penalties are to be expected).

Just a thought, but why not pay for an hour of an independant advisers time out in Dubai? That way, you may get some honest advice with having products pushed at you. You can then discuss the charging options, should you wish to progress with any of their advice.

Hope this helps
Wayne


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## Del (Apr 29, 2009)

ian731 said:


> Anyone got any information regarding reliable and trustworthy financial advisers in Dubai. Have had a few phonecalls from companies but would like to hear any comments before making a commitment to any of them.
> 
> Thanks for your help.


PM in your Box


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## Elphaba (Jan 24, 2008)

wikkid said:


> UK Based Independant Financial Adviser here,
> I would say that you should only deal with someone who is independant. If they are honest and above board, then they will be willing to work on a fee basis, and not accept any commission from anywhere. That way, you can be rest-assured that they are working in your best interests and not choosing products to suit them or their commission rates. An example can be that they take a set commission rate from your investment, but this is fully open and explained in advance, with the exact amounts made clear.
> No double charges should be taken either, if earnings are taken from the pension for example, then any money invested into a bond should be free of charge.
> *As for investments that are not possible in the UK, this can only be because the products/ funds are not allowed for consumer use in the UK. If this is the case, then guess why not?? Any adviser can set up an offshore bond from any of the reputable providers and have access to exactly the same investment choices, whether based in UK or anywhere else.*
> ...



Hardly any IFAs in the UAE will work on a fee basis, but I am one of the few that do.

Different products are available in the offshore market and UK based advisers do not have access to most of them. These are from major companies and are perfectly legitimate despite the tone of your comment. 

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## ian731 (Dec 17, 2008)

My apologies for not being more active on the Board over the last few days but I have had problems adding messages to the site.

Thank you all for the useful pointers - its has helped us a lot decide what to do -- be cautious I think is the key and we will talk to other adviser here and in the UK before deciding what to do.

I have also responded to the pms I received - not sure if they got there as I lost the connection as soon as I pressed send.


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## Tom A (Aug 12, 2011)

Agree with these guys, in the industry, be very careful! Most IFA's have less of the "I" and more of the "which product pays the highest commission". Only answer - research research research


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