Choosing the right expat financial advisor is one of the most important financial decisions you will make. Whether you are relocating, retiring abroad, or growing your wealth internationally, knowing how to compare expat financial advisers ensures your financial security and peace of mind.

In this guide, we explore how to assess, compare and select the best financial adviser for expats. We will answer the most frequently asked questions.

Introduction to Financial Advisers

Financial advisers play a crucial role in helping individuals manage their finances and achieve their financial goals. They provide professional financial advice on various financial products and services, including investment advice, retirement planning, and financial guidance. With so many financial advisers out there, it’s essential to find the right one who can provide unbiased and independent advice tailored to your specific financial circumstances. In this section, we will explore the world of financial advisers, their role, and how to find the right one for your needs.

Types of Financial Advisers

There are different types of financial advisers, including independent financial advisers and restricted advisers. Independent financial advisers offer unbiased advice on a wide range of financial products from various companies, while restricted advisers provide advice on a limited range of products from specific companies. It’s essential to understand the difference between these two types of advisers to make an informed decision about which one to choose. Independent financial advisers are often considered the better option, as they can provide advice on the whole range of financial products available in the market.

How to Know if a Financial Adviser is Good

A good financial adviser will prioritise your needs and act transparently. Here is how you can spot a reputable adviser:

• Look for red flags: Be wary if the adviser pressures you into decisions, lacks transparency about fees, or recommends complex products without clear explanations.
• Understand the cost structure: Ask about the average cost of a financial adviser and what percentage is normal. Typically, a 1% management fee is standard. Do their show their fees on their website like we do here at Harrison Brook?
• Trust and qualifications: Verify if they are qualified and trustworthy.
• Conduct a background check: Verify the adviser’s credentials and licensing. Are they a registered business in the country they are based? For example, in France, a French business should have SIREN or SIRET number. Do they have an office? Employees?

Learn more about trustworthy financial advice for expats.

Is It Worth Paying 1% to a Financial Adviser?

Many clients ask if paying 1% annually is justified. Here is what to consider:

• Value over cost: A good adviser can generate returns that far outweigh their fees through strategic investments, tax efficiency, and proper planning.
• DIY risks: Managing investments independently could save fees but often leads to emotional decisions, poor diversification, and missed opportunities.
• Fee benchmarking: Compare fees across advisers. Understand what is included and if there are additional hidden costs. Cheaper isn’t always best.

Is There a Rating System for Financial Advisers?

Ratings can help, but not all systems are reliable. Here is how to effectively evaluate an adviser:

• Online reviews: Search independent platforms, not just testimonials on the adviser’s website. For example, here at Harrison Brook we collect independent client reviews via Feefo.
• Professional accreditations: Ensure they are licensed and adhere to regulatory bodies in their country of practice.
  • Professional training: Ensure the adviser completes at least 35 hours of professional training each year to maintain their Statement of Professional Standing (SPS).
• Physical presence: An adviser with an office and employed staff indicates credibility. In France, the SIREN or SIRET number is public proof of registered businesses.
• Client recommendations: Personal referrals are often the most reliable source.

For a trusted team with physical presence and transparent processes, explore Harrison Brook’s services.

How Do You Pick a Good Financial Adviser?

When selecting a financial adviser, consider these points:

• Important factors: Experience with expats, understanding of cross-border issues, and offering personalised advice rather than pushing products.
• Ask the right questions: What are your fees? How long have they existed? Are you independent or tied to specific products? How do you assess client needs? Are they a restricted adviser? Understanding if the adviser can only recommend a limited range of products is crucial for making an informed decision.
• Multiple consultations: Speak to more than one adviser before deciding. Trust your instincts during meetings.

What not to do: Never select based purely on glossy marketing or low fees without understanding the real value offered.

First Meeting with a Financial Adviser

The first meeting with a financial adviser is an opportunity to discuss your financial situation, goals, and objectives. It’s essential to prepare for this meeting by gathering all relevant financial documents and information. During the meeting, the adviser will ask you questions about your financial circumstances, risk tolerance, and investment goals to understand your needs better. This meeting is also an opportunity for you to ask questions about the adviser’s qualifications, experience, and fee structure. A good financial adviser will take the time to explain their services, fees, and the advice they can provide, ensuring you have a clearer understanding of what to expect.

Services Offered by Financial Advisers

Financial advisers offer a wide range of services, including investment advice, retirement planning, and financial guidance. They can help you create a personalised financial plan tailored to your specific needs and goals. Some advisers may specialise in particular areas, such as pensions or protection products, while others may offer a more comprehensive service. When choosing a financial adviser, it’s essential to consider the services they offer and whether they align with your needs. A good financial adviser will provide ongoing support and guidance, helping you to achieve your long-term financial goals.

Physical Presence and Local Licensing

Physical presence and local licensing are critical when comparing expat financial advisers.

• Why it matters: Advisers physically located in your country are more accountable. You can meet them face to face and they understand the specific financial laws and tax implications.
• National qualifications: Ensure the adviser meets local and UK Level 4 standards to guarantee they are properly qualified.
• Employed staff: Advisers with employed, not freelance, staff show a deeper commitment to servicing clients locally.

Always check these credentials before engaging with any financial adviser.

Independent Financial Guidance

Independent financial guidance is essential when making important financial decisions. A good financial adviser will provide unbiased and independent advice, considering the whole range of financial products available in the market. This type of guidance can help you make informed decisions about your finances, ensuring you get the best possible outcome. Independent financial guidance is particularly important when it comes to retirement planning, as it can help you create a sustainable income stream and ensure you have enough money to enjoy your retirement.

Complaints and Redress

When seeking financial advice, especially as an expat, it is vital to work with a company that is a legally registered business, holds the necessary licenses and permissions in the country where you reside, and is regulated by an authority with a formal complaints process.

If you’re unhappy with the advice or service provided, you have the right to raise a complaint. The first step is to contact the adviser or their firm directly to express your concerns. If the matter isn’t resolved to your satisfaction, you may be able to escalate it to an independent regulatory body or ombudsman, depending on the jurisdiction in which the adviser operates.

Understanding the complaint process in the country where your adviser is licensed is crucial to protecting your rights and ensuring you have access to fair redress. Reputable financial advisers will have a transparent complaints policy and will be committed to resolving issues promptly and fairly in line with local regulations.

Frequently Asked Questions (FAQs)

What are the red flags for financial advisers?

Red flags include lack of fee transparency, pressure sales tactics, poor communication, and the absence of proper licensing.

What percentage is normal for a financial adviser?

Typically, a 1% per annum management fee is standard, but always clarify what services are included.

Should you have more than one financial adviser?

Not usually necessary. A single trustworthy adviser is better than managing multiple relationships.

How do I know if a financial adviser is legitimate?

Check their registration, ask for proof of licensing, and research independent reviews.

How safe is your money with a financial adviser?

When you choose a licensed, regulated adviser with strong reviews and professional indemnity insurance, your money is significantly safer.

How do I find the right adviser?

Identify your financial needs and circumstances, and look for an adviser who specialises in those areas and aligns with your financial goals. Consider factors such as investment goals, financial capacity, risk tolerance, and the type of advice you seek.

Conclusion

Choosing the right expat financial adviser is crucial to achieving your financial goals abroad. Always verify their licensing, physical presence, fees, and client testimonials. Comparing financial advisers using these criteria ensures that you will find a trusted partner for your financial journey. Always seek advice from qualified professionals to ensure you make informed financial decisions.

Looking for expert expat financial advice with trusted professionals?

Contact Harrison Brook today for a free, no obligation consultation and see how we can help you achieve your financial goals abroad.