How to Select the Best Financial Advisor in Dubai

Given the Wall Street scandal recently, many investors look closer to who truly manages their money and what investment methodology they follow. Investors are taking the time to do their business and becoming more educated in choosing the best financial advisor.

In my travels and meetings with clients, I continue to hear the same vein of questions. How do you choose the best wealth advisor in Dubai? How do I choose the best investment management company? Is there a FAQ about choosing the best financial advisor I can read? Is "Registered Representative" fiduciary? What is the Registered Investment Advisor?

What is the difference between registered representatives and registered investment advisors? With great questions, I want to take the time to answer these questions and overcome this fundamental topic helping investors choose financial advisors or the best wealth managers.

Question 1. How do I know if my financial advisor has fiduciary responsibility?

Only a small percentage of financial advisors are Registered Investment Advisors (RIA). Federal and state law requires that RIAs are held to a fiduciary standard. Most so-called financial advisors are considered broker-dealers and are held to a lower standard of diligence on behalf of their clients. One of the best ways to judge if your financial advisor is held to a Fiduciary standard is to find out how he or she is compensated.

Question # 2: What does fiduciary mean in relation to financial advisors or wealth managers?

FI• DU • CI • AR • Y – Financial Advisor held to a Fiduciary Standard occupies a position of special trust and confidence when working with a client. As a fiduciary, the Financial Advisor is required by law to act in the best interest of their client. This includes disclosure of how they are to be compensated and any corresponding conflicts of interest.

Question # 3: Who is fiduciary?

Fiduciary responsibility does not arise only in the financial services industry. Professionals in other fields also are also legally required to work in your best interest.