Long-term financial planning is crucial for residents of the UAE, especially those attempting to maximize on their earning years, said an industry expert, highlighting top five tips for seeking professional financial advice in the Emirates.

The key to good financial planning is the fact-finding process and it is used to gain a better understanding of a client’s situation, according to Tarun Khanna, CEO of Nexus Group, a leading financial adviser in the GCC.

It is a process one must be trained in, but in the UAE financial advisors rarely have professional credentials such as the UK’s Chartered Insurance Institute certificate. While some of the largest firms usually insist on such qualifications and offer continuous professional development internally, smaller ones often lack the capacity to do this.

Understanding a client’s attitude toward risk is also vital to ensure a product falls within his or her budget and comfort zone, and advisors must be upfront about fees and costs, including penalties for early withdrawal. It is critical, say financial experts, that individuals in the UAE properly interview their potential financial advisors, in much the same way they might assess any other professional consultant.

“Proper financial advisors take a holistic approach. For instance, someone nearing retirement would have very different needs from those of a new parent,” said Khanna.

 “As a broker, Nexus vets every advisor it hires. Our compliance team will check the quality of advice offered to ensure that it suits the client’s circumstances.

“Satisfied customers refer advisors to friends, colleagues, or relatives, reducing the risk of being offered poor advice, as this would jeopardize their relationship with the referrer. On the other hand, cold-callers almost invariably press for a sale within a very short space of time, regardless of clients’ circumstances,” he added.

Top 5 tips for seeking professional financial advice in the UAE:

1. Check credentials: Quiz advisors on their qualifications, experience and professional training.

2. Opt for established firms: Bigger companies can hire better-trained staff and will have structures in place to ensure continuous training and development.

3. Talk about yourself: Explain what you hope to gain from your policy and the length of time you’re prepared to commit to it. Be realistic – how much money would your family need if something were to happen to you?

4. Read the small print: All financial dealings are complex – that’s why we seek help in the first place.

5. Ask about regulation and service levels: Is your adviser registered with the relevant insurance authority or financial services authority in your jurisdiction? Good advisors should stay in regular contact and review your policy approximately twice per year. – TradeArabia News Service