How to Choose an International Financial Adviser

Selecting a financial adviser is one of the most consequential financial decisions you will make. Selecting the wrong adviser as an internationally mobile individual can be particularly costly — inappropriate products, poor regulatory coverage, undisclosed conflicts of interest, and failure to understand your cross-border tax position have damaged the finances of many expats who chose on the basis of a referral or a convincing sales pitch rather than objective criteria.

This guide sets out what to check, what to ask, and what the answers should look like.

Regulatory status: the non-negotiable starting point

Before any other consideration, you need to be satisfied that the adviser is authorised to give you the advice you need, in the jurisdictions relevant to your situation.

UK FCA regulation is the gold standard for UK nationals. The Financial Conduct Authority's register (register.fca.org.uk) is publicly searchable and shows whether an individual and their firm are authorised. Look for authorisation to provide "investment advice" and, if relevant, "pension transfer and pension opt-out advice" (a separate, additional qualification).

Local regulatory authorisation may also be required. An adviser operating in the UAE, for example, should be authorised by either the DFSA (for those based in the Dubai International Financial Centre) or the SCA (for those based elsewhere in the UAE). In Cyprus, regulation sits with CySEC. In Spain, with CNMV. An adviser who is not locally authorised is operating outside the regulatory perimeter, which removes your consumer protection rights.

Cross-border advisory mandates are complex. Some advisers operate under FCA passporting (now limited post-Brexit for EU countries), local regulatory exemptions, or arrangements that allow them to serve non-resident clients under their home regulator's rules. Ask explicitly how the adviser is authorised to advise you and verify the answer with the relevant regulator.

What to do: search the FCA Register, the local regulator's register, and any professional body the adviser claims membership of before your first substantive meeting.

Fee structure: how your adviser is paid

Understanding how your adviser is compensated is essential to assessing potential conflicts of interest. There are three broad models:

Fee-only: the adviser charges a flat fee, hourly fee, or percentage of assets under management, and receives no commission or other payment from product providers. This is the model with the least structural conflict of interest. The fee is transparent and aligns the adviser's interests with yours (percentage-of-assets fees grow when your portfolio grows).

Commission-based: the adviser receives payment from product providers when you invest in their products. This creates an obvious conflict of interest — the adviser has a financial incentive to recommend products that pay higher commission, regardless of whether they are most suitable for you. Commission on new business was banned in the UK by the Retail Distribution Review in 2013. It remains common in some offshore jurisdictions and on older legacy products. An adviser who earns commission from your investments should be treated with heightened scrutiny.

Hybrid: the adviser charges an upfront planning fee but also receives ongoing trail commission or platform rebates. This is a mixed model — less conflicted than pure commission but not as clean as pure fee-only.

What to ask: "How are you paid? Do you receive any payments from product providers in relation to my investments?" A straightforward adviser will answer this clearly and provide a written fee disclosure document before you proceed.

Typical fee levels vary significantly by firm, service model, and portfolio size. Asset management fees for international wealth management commonly range from 0.5% to 1.5% p.a. of assets under management for ongoing discretionary management, with initial planning fees that may range from several hundred to several thousand pounds depending on complexity. See our detailed guide on fee structures.

Independence vs restricted

Under FCA rules — and the equivalent in most well-regulated jurisdictions — advisers must disclose whether they are independent or restricted.

An independent financial adviser (IFA) can recommend any product on the market. This freedom of product selection is important: it means the adviser's recommendation is based on your needs, not on the limitations of a panel.

A restricted adviser can only recommend from a defined range — for example, a tied agent can only recommend one provider's products; a panel-restricted adviser can only recommend from an approved list. Restriction is not inherently disreputable, but you need to understand what it means for the advice you receive.

What to ask: "Is your firm independent or restricted? If restricted, what is the restriction?" Get the answer in writing.

Qualifications and professional credentials

In the UK, the minimum requirement for giving regulated financial advice is a Level 4 Diploma in Financial Planning (RQF), equivalent to the first year of an undergraduate degree. This is a relatively low bar. Look for:

Chartered Financial Planner: Level 6 qualification awarded by the Chartered Insurance Institute (CII), representing the highest domestic UK qualification for financial planners.

CISI Diploma in Investment Management or Wealth Management: awarded by the Chartered Institute for Securities and Investment, demonstrating advanced technical knowledge.

CFA (Chartered Financial Analyst): internationally recognised investment qualification from the CFA Institute. Particularly relevant for advisers with significant investment management responsibility. Three levels of examination, requiring extensive investment analysis knowledge.

CFP (Certified Financial Planner): an internationally recognised comprehensive financial planning qualification, awarded by the Financial Planning Standards Board. Strong signal for holistic planning competence.

STEP (Society of Trust and Estate Practitioners): relevant for advisers who deal significantly with estate planning, trusts, and succession. STEP membership demonstrates specialist knowledge in this area.

Qualifications are necessary but not sufficient. Also look for: years of experience working with expat clients specifically, knowledge of the tax systems in your relevant jurisdictions, and references from existing clients in similar situations to yours.

The questions to ask before appointing

Before appointing an adviser, obtain satisfactory answers to the following:

1. Are you authorised by the FCA (or equivalent) to advise me given my country of residence?
2. Are you independent or restricted? If restricted, what is the scope of your restriction?
3. How are you paid? Do you receive any payments from product providers?
4. What qualifications do you hold? Are you a Chartered Financial Planner or equivalent?
5. How many expat clients do you currently advise? In which countries?
6. What is your experience with cross-border tax planning involving UK non-residents?
7. Who will manage my investments day to day, and how will the assets be held?
8. How often will we have reviews and what does the review process cover?
9. What is your complaints process and what regulatory body could I escalate to?
10. Can you provide references from clients in a similar situation to mine?

A competent, reputable adviser will welcome these questions and answer them clearly. Evasiveness, vague answers, or pressure to proceed quickly before you have done due diligence are red flags.

Red flags to watch for

• Claims of extraordinary returns or guarantees of investment performance
• Pressure to invest quickly, before a "deadline" expires
• Unwillingness to put fee disclosure in writing
• Reluctance to discuss regulatory status
• Products that are described as "specially available" only through this adviser
• High upfront commissions embedded in products that are not transparently disclosed
• No clear answer to "who holds my money?"

The financial services industry has a long history of mis-selling to expats, particularly through products with high embedded commissions and long lock-in periods. Due diligence before appointing an adviser is far easier than unwinding a poor decision after the fact.

---

This article is for general information only and does not constitute financial advice. Regulatory requirements vary by jurisdiction and change over time. Always verify regulatory status directly with the relevant regulator before appointing an adviser.

How Global Investments can help

Global Investments operates under appropriate regulatory authorisations for the markets in which we advise clients. We are transparent about our fees, our independence, and the qualifications held by our advisory team. We welcome any and all of the due diligence questions set out in this guide. Contact us to discuss your requirements and ask us anything you like before proceeding.