How a "financial salesman" rhetoric doesn't match his action


Many financial salesmen in Asia, the Middle East and beyond who claim to offer "qualified" financial advice, "tax-efficient" investments and "award-winning" fund management have a lot of rhetoric intended to persuade you but in the end their action is totally different.

Most of today's "offshore" financial advice firms are still running their product-focused, commission-based sales operations which were widespread in Europe, UK and beyond in the 1990s. They won't reveal you the fees for their services and they are purely remunerated by commission from investment products and providers. There is no transparency about their services and no justification for the value they provide to you. They claim that with no tax on capital gains, an offshore investment will provide better returns. They also persuade you with free fund switching, additional allocations & bonuses, choice, flexibility and accessibility.

Expensive financial products, laced with enormous commission payments to financial salespeople, are the norm. As for an obligation to give you suitable advice, forget it! In the world of lightly regulated offshore financial services, anything goes. We have seen numerous "advice" letters from financial salesmen which are so bad on every level that in Europe, UK and beyond they would be grounds for serious misconduct fines and financial compensation awards. There is systematic, widespread and damaging mis-selling being carried out by financial salesmen.

'Offshore' arrangements (such as the insurance linked offshore bond/executive investment "wrapper") are lucrative for financial salesmen. The typical initial charge is about 7 per cent with ongoing charges of about 2 per cent a year. 

A $100,000 initial investment therefore becomes $93,000 after deducting the set-up costs and commissions. It then incurs total annual costs of about $2,000 a year (as this is based on the initial investment amount).

Another widespread practice is to encourage you to save monthly or annual amounts into a long-term savings plan (15-25 years), because the longer the contract term, the higher the commission payable. A typical 20-year savings plan will see 84 per cent of the first year's premiums swallowed in set-up costs, mostly to fund the commissions for the financial salesmen.

Our advice is to engage the services of a regulated, fee-only, financial advisor who invests your money via a smart and low-cost investment platform with NO surrender charges or lock-in period and your money fully accessible from day one. That way you will get a personalised financial plan, high quality advice, competitively costed financial solutions and regulatory protection. All for a transparent, fair and agreed fee.

Don't let your hard-earned money decimated by sky-high commissions and product charges or highly speculative investments by an unscrupulous financial salesman whose rhetoric doesn't match his action, contact us instead!