Financial Advisor and Inheritance

[Pushkin]

We, like so many other people, have been worried and confused about the inheritance issue. I would like to mention, for the benefit of others, that we were introduced to a charming lady who is an expert in this field.  We now feel that everything has been done that can be done to protect each other and our child etc.  She speaks excellent English and, though she gives one to one advice, she is looking to do more group presentation sessions.  She lives in the Rochefort area but will travel almost anywhere.  If anyone is interested please pm me and I will pass on her details.

Pushkin

[Chancer]

I sincerely hope that this lady proves to be the exception but............

Every financial advisor that I have ever had the misfortune of meeting has been charming.

And also usually a consumate liar to boot[6]

[Russethouse]

Since my sister is a qualified financial adviser and I know just how hard she has worked not only to gain her qualifications but also to establish a good reputation I think your remark is extremely offensive.[6]

[woolybananasbrother]

My own experience of financial advisers is not positive either. Sorry RH

[Russethouse]

Don't you guys ever go on personal recommendation or ask about track records ? Indeed WB have you had occasion to use an IFA in the UK since rules about qualifications were introduced and if so did you ask about them ? 

From what I know about it some people specialise in one thing, some in another. For example my sister is a Member of the Society of Financial Advisors (MFSA) and holds a G60 Pensions, K10 Retirement Options and K20 Pension Investment Options,  other people she works with specialise in Financial planning and wealth management and personal tax planning.

I can't help feeling that some people chose their plumber with more care[Www]

[woolybananasbrother]

several years ago but good company, well qualified person. still got bum advice

 

[Bob T]

I used to live with an IFA, and she was only interested in one thing, no not that, earning money at any cost.

[woolybananasbrother]

"used to" suggests that the money won?

[allanb]

[quote user="Russethouse"]Since my sister is a qualified financial adviser and I know just how hard she has worked not only to gain her qualifications but also to establish a good reputation I think your remark is extremely offensive.[/quote]Nobody said that your sister is not charming. But bad advisers tend to be charming, too - that's how they continue to get business, even though they are bad advisers.

If your sister knows her job she will probably confirm this.

[Russethouse]

Whether she is charming or not is hardly the point, the fact is that she can prove she  knows what she is talking about and the same applies to her business partners.(And thousands of other IFAs too, no doubt)

Some plumbers are charming - it isn't a indicator of their skill.

You pay your money and you take your choice.

[Ron Avery]

RH,you cannot win on this one,  its very hard to deal with people who tell you on the one hand how long they have been out of the UK but are ready at the drop of a hat to offer an opinion about current UK related matters[:P].  The traffic was awful when I was in the UK last all those horseless carriages mixed up with men with red flags....[:D].

As we seem to have gotten away from a lady giving free financial advice in the Charente region,which you can take or leave,  having an IFA or more accurately a  FA in the family until the end of 2007, my knowledge of this business like yours is a bit more current than those who have been 25 years up the Umboko river[:P].

Your sister will tell you that there far fewer FAs about nowadays, a lot of the big investment companies have dispensed with their services and many FAs have left or are thinking of leaving the industry. Those companies that still have FAs, who go to the trouble of training and paying for examinations which Fas now must take before handing out advice, want their people selling the best products that they have, not of the opposition.   At the end of the day they are there to sell their employer's products and hopefully they are the best on the market, so its the company that you are choosing rather than the FA.  If the company is a good one then you will get a good reurn on your investment and you can do your own research from their results to see which are potentially the best and hopefully the FA will guide you as to the best product for your personal needs.

[Gluestick]

Back in the mad 80s - a forerunner of the current Boom-Bust reality -  I was involved in evaluating potential for setting up an IFA operation which would have joined qualified lawyers (Estate and Trust), qualified accountants, external stockbrokers and experts in pensions, investment and life products.

It stalled, mainly because of growing regulation (which in the early days of the Financial Service Act were well intentioned blather) and simply, the way the main providers of products sought to market their wares.

We looked at it again in the 90s. but were compelled to conclude that despite our high moral intent, we would would fail due to the opposite amoral attitude of the majority.

I again became involed (twice) carrying out consultancy for two different putative IFA operations: the last being a network.

It became quickly apparent that the major cost and problem was finding a suitably qualified Compliance Manager, rather than truly knowledgable sales staff/members.

Thus the emphasis has shifted to making sure the IFA is covered in terms of compliance to law, and thus self-protection, rather than excellent forward view of the markets and performance.

IFAs are simply process servers for main company providers: they are not, sadly, experts in markets and investments: rather, IMHO, the reverse, since they tend to recommend the products of the company provider they can access.

Whilst they may well (should, once they have finished their FPC I, II and Advanced) demonstrate reasonable knowledge of the law in order to demonstrate compliance, their forward view is invariably no better than most in terms of which investment to pick.

The legion of examples of misselling which are still being unwound unfortunately provides much ammunition for the public to enjoy a wholly negative view.

If one seeks to secure assets in death and minimise taxes then the first stop should normally be a suitably qualified lawyer: if one has to face a cross-border situation, then it is critical that the lawyer enjoys significant up to the minute knowledge of both territories and their laws.

 

[allanb]

[quote user="Russethouse"]Some plumbers are charming - it isn't a indicator of their skill.[/quote]If you substitute "financial advisers" for "plumbers", that's exactly my point.

[Russethouse]

Do the reverse with this statement and that's mine[:)]

Every financial advisor that I have ever had the misfortune of meeting has been charming.

And also usually a consumate liar to boot

[Will]

I have met an extremely charming man offering financial and other advice to the British in France.

Not long ago he was convicted of serious fraud committed while in a previous employment with a major French bank.

He is still advertising his financial advice services (and has even been featured in Living France magazine).

Of course not all financial advisors are crooks. But some are. Just as some estate agents, solicitors, builders, car salesmen, policemen, journalists etc are less honest than they should be, while others are completely trustworthy.

Free advice is all very well, but anybody, qualified or otherwise, can give it, and there is little or no redress if following the advice leads you into difficulty. It's often free for a reason, such as the provider of the service you are advised to use pays a commission to the advisor (though if you are aware of this, that's fair enough). At least paid-for advice from a qualified professional should be covered by some sort of indemnity or insurance.

[Pushkin]

Do you know, I have read and re-read my post and can find no mention of the fact that her services are free!  I am pleased to see that this subject has instigated a lively discussion but would like to point out that neither I or my husband are 'financial virgins' and can assure you that the lady in question had rung all our bells and  proved her expertise.  As Russetthouse says, you pay your money and take your chance.  I did point out that she is very interested in doing group presentations which would minimise the individual cost.  We must be either very lucky or very shrewd as our experience of FAs has been nothing but good.  (I would like to put it down to my amazing intelligence but not sure you would be totally convinced on that score)!

Pushkin 

[AnOther]

However charming, qualified, professional and well recommended an adviser may be it's always worth having a little voice in your head reminding you.....

"he/she wants my money" [blink]

[allanb]

I'd like to mention one thing in particular that financial advisers are very often guilty of, which is borderline dishonesty if not actually theft : pushing the client towards unit trusts and similar products that pay commission, when there are other kinds of  investment - maybe more suitable - that don't.

I have a copy of a report written by a well-known adviser for a retired couple, which recommends such things as unit trusts tied up in an insurance bond, and does not mention the fact that there are bank savings accounts that are totally risk-free, pay interest that is free of tax and social security contributions, and where the money is always available without penalty if needed.  I do not say that such accounts are necessarily right for everyone, or for all of someone's savings.  But to fail to mention them is a kind of dishonesty, I think.  (Needless to say, they do not pay commission to advisers.)

This particular adviser charged a fee for the report, which makes it worse.

 

I haven't spent 25 years up the Umboko, in Ron's memorable phrase.  But because of my job I have probably listened to more financial advisers' presentations than most people.  What's more, I don't have any financial advisers in the family, so I think I can be reasonably objective.

What I have observed is that expatriates are especially at risk, because they tend to be less well informed than the natives about tax rules, financial regulations, etc.  When they meet a charming financial adviser who speaks their language, they may not always remain as sceptical as they should be.

[Gluestick]

For me, the Acid Test of any "Expert" is to obtain at least two and ideally three separate reports and recommendations.

If they are wildly at variance, then one must doubt the true knowledge and impartiality of those "Experts".

Unfortunately, anyone setting up their stall to promote expertise has a significant problem: keeping up with the State-of-the-Art.

As I know, professionally, constant changes and the demands of CPE/CPD (Continuous Professional Education/ Development) are most onerous and time consuming: and make serious inroads into fee earning potential.

The original concept of the IFA (Independent Financial Adviser) was that the very nature of their activity, "Independence" would provide their clients access to the widest breadth of the market: whereas, tied and retained Financial Advisers could only sell product offerings from providers with whom they had an agency or relationship.

Which is fine: in theory.

The core problem has been that during the past ten years, the world of financial products like most, has been the focus of M & A fever (Mergers and Acquisitions) and not all product providers will deal with every independent adviser: often to obtain the best possible deal, the client has to address the business direct.

My own perspective is that it's preferrable to use the services of a Financial Adviser whom one pays a professional fee: rather than expect advice gratis and the adviser to earn their daily bread by commissions. This at least removes one level of bias from the relationship.

That said, how can the client enjoy a comfort zone in knowing the advice is sound and that they are receiving good value for money spent obtaining that advice?

One way is to do some first level research yourself: ask for advice on various aspects already knowing the answers! And in the beginning, ask for a surface recommendation and fee quotation from three separate advisers, including the topics on which you already know the answers, in the desired surface report.

Can't be bothered?

Well, then since Caveat Emptor, don't whinge after the event!

You owe it to yourself to take serious and detailed steps in planning your financial future. Make serious errors and you will never recover.

As many are finding out currently..................................................

 

[Chancer]

Sorry RussetHouse I have only just seen your reply.

I doubt that your sister was one of the many "IFR'S" that I have had dealings with.

 I was simply stating that the ones I have had dealings with have all been, in fact overcharming and to call them consummate liars was actually being kind, this does not mean that the others out there are the same.