Why don’t people trust financial advisors?

Don't trust your financial advisor

 Click to listen to Steve debate the trustworthiness of financial advisors… with the king of financial advisors.

Recently the CFA Institute (which oversees the Chartered Financial Analyst qualification) released an interesting survey suggesting that only 32% of investors in the UAE assume their financial advisor is trustworthy.

That doesn’t really come as a surprise to anyone living here, does it?

You can read the report here and look at the questions in more detail here. I will be writing more about some of the implications in the future.

The National covered the story and based on my rather strident comment below, I was asked to appear on the Dubai Eye 103.8 Business Breakfast for further comment.

The bad reputation of many financial firms and advisors tarnishes the entire industry. I wish people would be even less trusting though, as plenty are still getting suckered into buying long-term savings plans that are expensive, badly invested and hard to escape from.

The radio team thought it would be more exciting if I was pitted against the Chairman of Globaleye to defend the reputation of financial advisors.

We ended up having a ‘robust’ 20-minute debate that you can listen to here. Not too much interrupting was allowed but I was happy to get some points across and spread the good word.

Many of the points raised demand their own post, so I will no doubt be writing more on this topic in the future.

Feel free to share with someone who needs to listen to this, especially if they are about to invest in a long-term savings plan, pension transfer or whole life insurance scheme! Better they think hard about it now than write a sad email to us afterwards (though we welcome those as well).

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