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Hiring a financial adviser

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Why you can trust SCMP
SCMP Reporter

Knowledge: He should have a sound knowledge of all the major financial products offered in the industry by banks, insurance companies and security houses to ensure that you have a plan that is integrated.

Referrals: Financial planners do not specialise in a particular sector and generally look at the overall global picture, and point you in the right direction. Apart from showing you the potential pitfalls, they should be able to refer you to specialists or give good references when you need them.

Independent advice: They should be able to provide independent advice. Is the organisation they work for 'independent' in terms of product range? For example, financial planners from banks might be restricted to recommending their own products. Also check if they get a commission by referring you to a certain investment product.

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Charges: How do they charge? It can be a flat fee or on an hourly basis. Some charge by commission on the returns of your investments. Also find out if you can speak to them on the phone, without being charged.

Overseas resources: If you have overseas investments, the financial planner should have the resources or expertise to offer tax advice in that particular jurisdiction.

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Decision-making: Accountants, lawyers and tax specialists are often ready to make referrals to good and reliable financial planners.

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