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universally recognised that the best way for most people to secure financial
freedom is to devise, implement and manage a sound, tailor-made strategy with
an independent financial adviser (IFA).
the right IFA, a professional who will manage your money and help you meet your
long-term objectives, is not always easy. Yet it’s crucial to get it right.
Your finances are too important for you and your family and mistakes are too
costly to select the wrong financial mentor.
your potential financial advisor these 7 questions, I believe you will avoid
most of the potential pitfalls.
All advice given in South Africa should be completed by a company and an
individual registered with the Financial Services Board (FSB). This can be
checked immediately on the FSB website.
Solution – It
makes sense to work with a company that is located worldwide to make sure you
receive continuity of service should you ever relocate. For this reason a
company holding a physical presence globally, within all the major cities would
be strongly recommended. If long term service is required be sure to check the
company has offices in your potential future residences. The Company should
also be regulated in all the markets in which it operates where required.
Solution – An
independent advisory firm should be able to offer a range of trust services,
product services and investment options. Ask them to show you several different
options to give you peace of mind when agreeing to the advice.
Ideally you should choose a company that has been operating in the marketplace
for more than five years. This will provide a more accurate, longer-term gauge
of the firm’s quality of advice, service and compliance history.
–Assets under management that total in excess of US$4bn would suggest some
degree of critical mass in the industry, a significant share of the market, longevity
in the industry and a robust organisational structure.
All negotiations should be upfront and transparent from the start. Any
agreements you enter into should disclose how charges are made, how much will be
charged, service expectations and levels of protection.
Multiple complaints and offences are typically, and quite rightly, flagged up
and reported to the regulator. It would be worth checking whether the IFA or
their company has a ‘track record’ in this regard before agreeing to work with
him or her. Enforcement Actions in this regard can be checked on the Financial Services Board (www.fsb.co.za) and/or
This article was replicated with the permission of the Editor, Ms Patricia Holburn, email@example.com or call her on 011 615 700