Good Rejection is Good Selection
By John Scott
Maybe you finally decided after years of living in Shanghai to agree to an appointment as a result of an unsolicited phone call from a representative of company XYZ, who offers financial advice and offshore tax planning.
But before you consider parting with your hard earned cash, how about a little spot of due diligence?
The majority of offshore advisers are not employed by company XYZ in terms of a salary; they are on commission only through the sale of various products. Now, there’s nothing necessarily wrong with that per se, but the ‘revolving door’ of offshore advisers never stops turning. They can be of the ‘here today gone tomorrow’ breed as their new found career hasn’t exactly turned out as they thought. Constant rejection on the phone, lack of personal finance to support themselves, poor or varied support from company XYZ, or simply being sold a dream, but awakening to a nightmare ensures that company XYZ runs a constant recruitment process to replace those who have departed.
Everyone needs financial advice and suitable planning should be a part of your life cycle. But most people don’t know where to start, and knowing some of the following points is key to ensuring your money is not going into unsafe, or untrustworthy hands.
Good professional financial advisers will hold suitable qualifications from their country of origin, or if new to the business, will have gained a basic qualification. One such qualification is ‘The Award in Financial Planning’ and is a fully accredited exam, set by the Chartered Insurance Institute of the UK and sat in many countries, including China, twice a year.
Consideration should be given to the company and their terms of business, i.e. whether or not they include a ‘fee option’. Commission not being disclosed has been one big criticism in the past by offshore clients, and while there is no regulatory requirement here in China to do so, there is no real reason why a client shouldn’t be told and can help in establishing trust. This has been a requirement in the United Kingdom since 1994.
Does the company have a code of conduct which informs you how and what they expect from their advisers and their dealings with all clients? In the event you need to make a complaint, do you know and understand the company’s process and is it impartial?
How about a report on your personal situation before you agree to any contract? Reports are a written representation of your situation and will cover the areas of advice in detail with structured recommendations.
If all your queries are answered satisfactorily, and you are happy to proceed, then work with your adviser and be assured that they have your interests at heart.
John Scott is the Chief Representative Officer for Platinum Financial Services in Shanghai and has been in the financial services for over 23 years, 19 of those in the United Kingdom. For further information, e-mail: [email protected]
