I like being asked tough questions –
It shows that clients have a real grasp of the key issues involved, which is great. It forces me to regularly reconsider the advice I give, and to make sure it continues to be the very best and most cost-effective solution. Also, and speaking from bitter personal experience of poor, disjointed advice I received in an area on which I am not au fait (renovating my property), I truly believe that clients are in a much more powerful position if they are aware of all the salient facts and issues.
With that in mind, and to put you in the most powerful position in your existing adviser relationship, I would start by getting the answers to the following:
- Are you truly impartial or are you restricted to only recommending certain structures and funds? I come across many clients with the same structure managed by the same investment manager. How can one structure and fund be the most appropriate for all clients with a wide variety of issues and situations?
- What qualifications do you have to advise? When you visit a professional one assumes they are qualified and good at what they do. It is remarkable therefore that many ‘advisers’ operate in Portugal without qualifications, and some even purport themselves to be tax advisers who do not have any formal tax qualifications. Those coming from the UK may be aware that ‘Chartered Financial Planner’ is the gold standard for advising clients, and ‘level 4’ is the minimum level of qualification required to advise.
- How much am I being charged? One of the most damaging issues to the performance of your portfolio are the charges that are being taken from your policy. Many times, these are ‘bundled’ or paid discreetly out of the back end of the product. Ask for an explicit breakdown in writing between each fund’s ‘Ongoing Fund Charge’, product/structure charges and the fees or commissions your adviser is taking, and from where.