6 Questions to ask when choosing a Financial Adviser

Are you considering help from a financial adviser? If so choosing your adviser and the institution they belong to is a big decision.

To help you make your decision you may want to ask:

1. Are you registered?
Whilst China is a non regulated environment as far as offshore advice, Independent Financial Advisory companies are either registered as a Representative Office or as a Wholly Owned Foreign Enterprise (WOFE). Companies who are a WOFE such as Global Wealth Management have shown greater commitment to China as they have to provide substantial registered capital, this will mean they are here for the long term.

2. What are your qualifications?
The term "financial planner" is used by many financial professionals, alternatively they may be known as financial consultant or financial adviser. Ask the adviser what qualifies them to offer financial planning advice. Look for an adviser who has proven experience in financial planning topics such as insurance, investment, mortgages and retirement planning. If the adviser holds a financial planning certification then ask to see a copy.

3. What experience do you have?
Find out how long the adviser has been advising in China and ask whether they have had any other related work experience in their home country or offshore. Importantly establish whether they will be staying in China for the long-term.

4. How will you help me reach my goals?
A professional adviser will ask about your financial goals and investment objectives. Are you mainly looking for safety, income or long-term growth? Are you saving for something specific, like retirement? The adviser will also ask about your financial situation, investment knowledge and risk attitude, they will record this information in a confidential document that is called a fact find. This information may seem personal, but it helps the adviser make the best recommendation for you. After all, "If you were sick you would not go to your doctor and just say please make me better, you would provide as much information with regards to your symptoms and then hopefully your doctor would make the best diagnosis for you"

The same applies to when providing financial advice. Make sure the adviser asks for this information records it and gives you a copy. You should also let your adviser know whenever your personal or financial situation changes so they can update this information.

5. What level of after service can I expect?
You should discuss this with the adviser up front and make sure this is documented. It may be that you require a statement on a regular basis or internet access to your account. Ensure that the adviser is prepared to meet with you for a regular review. Make sure you ask if there is a charge for this as some advisers or the institutions they work for do, however most like GWM do not.

6. Can you provide me with references from existing clients?
Any successful adviser should be in a position where they can offer a prospective client a contact number or e mail address of a few of their existing client's, this will then enable you to obtain a reference and give opportunity to ask and receive confirmation on what you have been told and questions you may want to ask

"Asking the right questions will never lead you to the wrong answers."

Alan Churchill cert.PFS
Regional Manager - Asia
Global Wealth Management


Written for Jin Magazine Tianjin October 2009
And SH Magazine January 2010