Finding good financial advice as an expat is a top priority for anyone planning to live or work overseas.
Seeking out a regulated and experienced independent advisor who can offer tailored financial advice is the first step.
For expats leaving the UK to take up a short-term posting of two or three years abroad means finding an IFA who can not only deal with finances at home, but also help with expert advice at the other end of the relocation.
For expats permanently leaving the UK, finding a trusted advisor is often more difficult as some countries have better financial safeguards than others.
Tax residence is also an important factor.
International IFAs
Temporary expats retaining their UK residence can still take advantage of tax breaks at home, like pension contribution relief, ISAs and other tax benefits, like the Seed Enterprise Investment Scheme.
Permanent expats lose these benefits and must rely on tax breaks in the country where they move to.
After establishing the need for professional financial advice, the search for someone to provide the information starts.
IFAs tend to be regulated in the country where they work rather than across borders, so the term ‘international IFA’ can be a misnomer.
Always check out the IFAs regulatory compliance – and do not just take their word for it. Ask for their registration details and check them out online.
Protecting your cash
Some sensible searches include –
- A general web search for the firm or individual to see what other people are saying about them online is a good start. A blank search does not necessarily mean anything is wrong, as people tend to list their gripes online rather than offer praise.
- Testimonials are not really worth a lot. No IFA is going to put forward anyone as a reference who is likely to bad mouth them – and fraudsters have been known to set up friends or colleagues as their referees.
- Ask for a registration number with a regulatory body and search the web site or give them a call to confirm the details. Again, false documents or advisors signing up with a regulator and then ditching the registration but continuing to offer the certification as proof of qualification is not unknown.
Do not part with any upfront fees or cash until you are completely sure of your advisor, however plausible they sound.
Reputable advisors should have no trouble answering questions about their business – and dodgy ones are likely to quickly disappear from the scene if you start asking some sticky questions.
