Five Questions to Ask Your Financial Adviser Before You Commit

Choosing a financial adviser is one of the most important financial decisions you will make. A good adviser — independent, experienced, genuinely aligned with your interests — can add significant value over a lifetime of investing. A poor one can cost you tens of thousands of pounds, leave you with unsuitable products, or — in extreme cases — expose you to fraud.

In the international space, the quality gap between advisers is wider than in domestic markets. The complexity of cross-border tax planning, offshore pension decisions, and multi-jurisdictional investment structuring means that errors or misconduct have higher consequences. And regulation of financial advice is less consistent across jurisdictions — the consumer protection available to UK residents using an FCA-regulated adviser may not exist for an expat using an unregulated intermediary operating from a different jurisdiction.

These five questions are a starting point for distinguishing good advisers from bad — and for understanding what you are actually engaging before you commit.

Question 1: "Are you independent or restricted?"

In UK financial regulation, there is a clear and important distinction between independent financial advisers (IFAs) and restricted advisers.

Independent advisers provide advice on the full range of relevant financial products from across the market. They are not tied to any particular provider, insurance company, or fund group. They are obliged to search the whole market and recommend the most suitable product for your needs.

Restricted advisers can only recommend products from a limited range — which might mean products from one provider, or products within a defined category. They must be transparent about their restriction, but many clients do not fully appreciate what it means in practice.

In the international space, the independent/restricted distinction is less consistently regulated than in the UK, and some advisers who operate in expat communities are not regulated in any major jurisdiction at all. The question to ask is not just "are you independent?" but "which regulatory body oversees your advice, and can I check your registration status?"

A genuine independent adviser regulated by the FCA, CySEC, MAS (Singapore), or another credible regulator will be able to provide you with their registration number and invite you to verify it on the relevant public register. Do this before you engage.

Question 2: "How do you get paid?"

This is the question that some advisers are reluctant to answer clearly, which is itself informative.

The possible answers are:

Fee-only. You pay the adviser directly for their advice — either a fixed fee, an hourly rate, or an ongoing percentage of assets under management. The adviser earns nothing from the products they recommend beyond what you pay them directly. This arrangement is the cleanest from a conflicts-of-interest perspective.

Commission. The adviser earns commission from product providers when you take a product they recommend. In the UK, commission on investment advice was banned for retail clients from 2013 (under the Retail Distribution Review). However, commission remains paid on some protection products (life insurance, income protection) and is common in many international markets where the RDR does not apply. Commission creates an inherent conflict: the adviser has an incentive to recommend products that pay higher commission, even if lower-commission alternatives serve you better.

Combined. A mixture of fee and commission — common in some international markets. It is important to understand the total remuneration the adviser receives and from all sources.

Ask for a written summary of the fees you will pay and what the adviser will earn from product providers in connection with any recommendations they make. The total cost of advice — including all product charges — should be visible before you commit.

Question 3: "What qualifications do you hold?"

In the UK, financial advisers must hold a minimum of a Level 4 Diploma in Financial Planning (or equivalent) to provide retail investment advice. Many qualified advisers hold higher-level qualifications.

Relevant qualifications to look for in an international context:

Chartered Financial Planner. The highest UK designation for financial planners, awarded by the Chartered Insurance Institute. It requires significant examination and continuing professional development commitments.

Certified Financial Planner (CFP). Globally recognised qualification in financial planning, awarded by the CFP Board (US) or affiliated bodies internationally. Widely held by practitioners in the US, Australia, Canada, and many other markets.

Chartered Financial Analyst (CFA). The globally respected qualification for investment management professionals, awarded by the CFA Institute. Rigorous, requiring typically 3–5 years of study. More relevant for investment management roles than for broader financial planning.

APFS (Associate of the Personal Finance Society). Another respected UK qualification for financial planners.

DipFA (Diploma for Financial Advisers). UK Level 4 qualification — the minimum required to give retail investment advice in the UK.

In international markets, the regulatory requirements for adviser qualifications vary. Some jurisdictions have no minimum qualifications requirement for people offering financial advice. In these environments, checking qualifications matters more, not less.

Be cautious of advisers who are vague about their qualifications or unable to provide details that can be verified. An adviser who genuinely holds strong qualifications will be proud of them and will be happy for you to verify them.

Question 4: "Have you worked with clients in my specific situation?"

International financial planning is not a single homogeneous discipline. An adviser experienced in UK domestic estate planning may not be familiar with the interaction between UK IHT and Cypriot law. An adviser experienced in Singapore expat planning may not understand QROPS rules, the former UK non-dom regime (abolished April 2025) and its transitional provisions, or the new four-year Foreign Income and Gains (FIG) regime that replaced it. An adviser who has worked extensively with UAE residents may not have experience with the specific issues facing UK nationals returning from abroad with foreign pension assets.

Your situation has specific dimensions: your nationality, your current country of residence, your probable future countries of residence, the types of assets you hold, the nature of your pension arrangements, and your overall wealth management goals. An adviser who has genuine experience with clients in genuinely comparable situations is better placed to provide relevant advice than a generalist, however competent.

Questions to ask:

• What proportion of your clients are UK nationals living in [your country]?
• Have you helped clients transfer UK pensions overseas? What was the outcome?
• How many of your clients have offshore portfolio bonds? Have you ever had a client who triggered an unexpected tax event from one?
• Have you dealt with NRCGT returns for clients selling UK property?

The specificity of the answers is itself informative. A genuinely experienced adviser will speak fluently and in detail about specific scenarios. A less experienced one will give general answers.

Question 5: "Can I see your firm's regulatory status and check it myself?"

This is not an insulting question to ask. It is the question of any informed consumer making a significant financial decision.

An adviser should be able to tell you:

• Which regulatory body oversees their firm
• Their firm's regulatory reference number
• How to check their status on the public register

For UK regulation: the FCA Financial Services Register at register.fca.org.uk For Cyprus: the CySEC register at cysec.gov.cy For Singapore: the MAS Financial Institutions Directory

Verify the registration yourself. Confirm that the firm you are dealing with is the same firm on the register. Check for any regulatory warnings or actions. This takes five minutes and is one of the most important five minutes in the adviser selection process.

Red flags to watch for

Beyond these five questions, watch for these warning signs:

Pressure to decide quickly. Legitimate financial advice does not expire in 48 hours. High-pressure sales tactics are a red flag.

Offshore pension liberation. Schemes that promise to "release" or "unlock" your UK pension before age 57 (the minimum pension access age from 2028, 55 before then) will likely trigger a 40–55% tax charge from HMRC. These are typically fraudulent or, at best, highly damaging. Walk away.

Guaranteed returns. No reputable investment adviser can guarantee positive returns. If someone is offering guaranteed returns above bank deposit rates, the risk is either hidden or the scheme is fraudulent.

Excessive product complexity. If you cannot understand what you are being recommended, even after a clear explanation, ask why the complexity is necessary. Legitimate financial products should be explainable in plain terms.

Reluctance to put things in writing. Every recommendation should come with a written suitability report explaining why the recommendation is appropriate for your specific circumstances. An adviser who is reluctant to provide this in writing is an adviser whose recommendations cannot withstand scrutiny.

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This article is for general information purposes only. It does not constitute a recommendation of any specific adviser or firm. Global Investments is regulated by CySEC and is committed to transparent, independent advice for internationally mobile individuals — contact us to discuss your situation.