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Alberto

A good financial advisor in Shanghai ?

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Does anyone know any good fee based financial advisors in shanghai? (Not those guys that call and drive me crazy!) I'd never trust them with my money -- they can't even tell me where they got my phone number.
 

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I've never heard of a fee based financial advisor in Shanghai. Certainly would be scope for one but financial advisors have gained such a bad name from the commission based salesmen that cold call everyone.

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I have been using one for last 7 years for some part of my portfolio (offshore funds on developing markets, hedgefunds, gold etc.). 

If you would be interested in ok advisor, you could pm me. I could ask him to contact you directly.  Fee based he is not.

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Yes for me it's more about the specific adviser rather than the company he works for. I have a guy who has looked after me well so I move with him if he moves company.

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Questions I have to ask any person giving me investment advice - have they made more money that me with their investments? Why is this person, company.. qualified to do more than recommend the products they are selling? The web is filled with people giving advice and that have actually made money. It just takes doing some homework.

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Just now, JohnLaw said:

Questions I have to ask any person giving me investment advice - have they made more money that me with their investments? Why is this person, company.. qualified to do more than recommend the products they are selling? The web is filled with people giving advice and that have actually made money. It just takes doing some homework.

I would have to disagree. web is filled with a lot of garbage. And those ideas that are not garbage - one time deals, where someone had a lucky guess on which stock to buy.

A good fund with will put your money into a strategy that will continuously beat averages (like DJIA or SP500).
They don't care if you had a field day shorting BP or Enron. 

That's why good funds don't advertise and people stand in line in order to invest with one.

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Like I said.. not talking about which fund..its about who you get to tell you about which fund. Some companies are invested in pushing certain funds because they are sales people for those funds. 

Yep..liquidity is an a big issue... having great returns don't do much good if you can't get your money out in a timely manner.

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There is no such thing as ' a good financial advisor'. There are financial advisors who are more ethical and client oriented than others.

Cold calling has got nothing to do with that. That's only a way to get new clients and says nothing about the quality of the advice or the products they are selling. Banks also only (in general) sell there own products.

You want to know how to invest?
Read a basic book about the subject and pick some basic products from a dull, old reliable bank. EG Savings account, a dull bond fund and a 'world' stock fund.

Want to beat the market?
You lose in the end, except the advisor....

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you are getting it wrong. Independent financial advisors work for the individual not the company and funds at all. And all different pension funds use different advisors. Independent advisors search the whole market for the individual, and see what is suits them best. Thats why the customer needs to shop around and see which suits them best. All the advisor companies have is people who have passed the exams and so know what they are looking for and understand what is there on the market. They can get hold of better funds and notes because of their size.

You must have had a bad advisor then before because in places like England, Australia and Geneva, and even Singapore to a certain extent, they are all fully regulated and you have to advise the client in their best interests. So if you do advise the client badly you can now be struck off. So really you should actually look into it before you say comments such as that. 

I'm a fully qualified accountant from England, and i know what exams IFA's have to do and how regulated it is. It is getting more andmore regulated which is why the exams have now been changed in England and you now have to do the Diploma if you want to be fully recognised.

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1 - Very few financial advisors are fiduciaries and are required to put the client's interest first. Laws are usually based on 'suitability' which is much more liberal, and shouldn't be misrepresented as putting the client's interest first. 

2 - "i know what exams IFA's have to do and how regulated it is" - you're not in the UK anymore. 

Speaking of the UK, the FSA banned commission for financial advisors starting in 2012. Why do you think the UK would want to do something like that?

I am not getting it wrong at all. ' independent' financial advisors get to pick and sell the products that give them the biggest kick back. And they do! 

It works that way all over he world.

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I just met with a couple of the largest "financial advisors" companies in Shanghai after being barraged by cold calls...Little did they know I have over a decade of experience as a regulator in the field...Harhar!

As a note of caution, I would seriously reconsider dealing with any company that is pushing "unit linked life insurance product." Sadly, this is ALL that the China-based advisors can push...

The two major products being pushed both have fees in excess of 10% per year. The reports that the salespeople prepared for me were flawed and did not take into account the fact the fees sky-rocket after several years. Sadly, the fees were mis-represented. Basically, the advisor would have lost his advisory licence in Australia given the breach of conduct. But as this is China, its UNREGULATED.

Another major problem is that your "advisor" will push to get the longest term possible. Most unit linked life insurance plans offered have 25 year plans. The advisor will push 25 years because that will max out his commission..

Note that all advisors in China are commission based. For example, the commissions on an expat investing 2000$ a month in one of these plans on the max term equals over 36,000$ in commissions to the '"advisor company" you deal with! Basically, the first 2 years of investments go straight to the company you deal with as commissions! Your advisor will do do everything possible to max out the years of the term because the commissions are massive!

And the commissions are massive because your money is locked into these accounts, often for up to 25 years. If you want to take your money out, in say 5 years, you will pay massive penalties and fees. You will basically lose all your money. Note that the clients don't learn about that until AFTER they sign a contract.

5 minutes ago, TomTom said:

you are getting it wrong. Independent financial advisors work for the individual not the company and funds at all. And all different pension funds use different advisors. Independent advisors search the whole market for the individual, and see what is suits them best. Thats why the customer needs to shop around and see which suits them best. All the advisor companies have is people who have passed the exams and so know what they are looking for and understand what is there on the market. They can get hold of better funds and notes because of their size.

The problem is there are no exams in China. You can be an english teacher and push financial products on the side. There is no oversight commission.

And independent advisors don't search the market as a whole in China. Under current investment laws, mainland China registered IFAs can only push 'Unit Linked Life Insurance,' which is basically akin to a pig with lipstick dressed in sheeps clothing. It does have massive commissions, however, so there is an incentive to sell these products. just don't expect good service once your FA has gone back to his home country and your money is locked into the account for a decades.

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