financial advisor opinions

[-Mark-]

Dear all - as this is my inaugural post, I just want to see what the general feeling is towards IFA's from readers of this forum.

I am based in Tokyo but considering a permanent switch into either HK or Shanghai within the next 12 months.

Although I myself fall into the category of 'Advisor', the core business I help people with is via an online fund platform. I am wishing to understand if the face to face advisory market in HK is similar to here in Japan and if there is scope for me to introduce a service to those that I'll diplomatically put could be deemed 'unhappy' with the options being offered to them.

I plan to be in HK & Shanghai in the coming weeks and so if anyone had the time and desire to meet in person for a chat this would be great.

Thanks,
Mark

[PDLM]

IFAs are amongst the most hated people in all expat communities that I am aware of.

Have you considered getting a real job?

[fth]

The experience here with IFA's is far from positive. They are often regarded as mere salesmen for expensive insurance linked products, without much regard to the suitability of the product to the client.

If you want to give actual advice in making fund recommendations (as opposed to selling insurance) you will need to be regulated in Hong Kong by the SFC, which will require two responsible officers, operating solo is not an option. Furthermore you may have additional hoops to jump through for recommending offshore (non-HK) funds.

[-Mark-]

Well that was a conclusive summary and early baptism to the boards!

@PDLM - I appreciate your directness but considering the fact we know precious little about each others history it's a bit disappointing to receive a personal attack straight off the bat.

@fth - We are aware of the additional regulations required (hence the upcoming visit to HK) and right now are exploring a partnership with certain banks.

If this is going to be a difficult place just to try and strike up a courteous conversation then I'll stop short of outlining our intentions but I would like to add that I share the same feelings about some (but not all) of the characters that masquarade in the IFA industry and what we are working towards does not correlate with what you have mentioned.

[shri]

I appreciate your directness but considering the fact we know precious little about each others history it's a bit disappointing to receive a personal attack straight off the bat.

I'd say get used to the attacks if you want to compete with the so called IFAs in this town.

I'll stop short of outlining our intentions

Thank you! I think you'll find many other forums here that are far more accepting to IFAs than this one is. Seriously..

[BenderBends]

i think what PDLM is getting at is this bit of logic:

in order to "advise" someone, you should be an expert.
if you are an expert at trading, you should be extremely wealthy.
if you are extremely wealthy, then why would you be hawking crappy investment products?
hawkers are nothing but crooks and cheats.

ergo...you are a crook and cheat, not an expert at investing.


btw...not a direct attack at you, just exemplifying the general rule of thumb around here about "financial advisors".

[PDLM]

I would like to add that I share the same feelings about some (but not all) of the characters that masquarade in the IFA industry and what we are working towards does not correlate with what you have mentioned.

All IFA's say they are the ones that are "better". They never are, in my experience.

You should also be aware that the banks are likely to be quite reluctant at the moment, having recently got badly stung by the "mini-bonds" fiasco.

[-Mark-]

Well i appreciate a random post from a new user is going to put me on a pedestal to be shot at and I had a feeling that I'd reconfirm what I've already been told (just not as vociferously!)

Maybe I shouldnt mince my words either and be less diplomatic in my approach - having read some of the other posts in this fourm I did credit the users as an audience that wouldn't subliminally fall under the spell of a 2nd hand car salesman.

If the tone of my opening post was construed as I'm planning to come to HK as a IFA and can I have your business - this couldn't be further from the truth. The meetings I am seeking are with those that can give me a more general understanding as to who to avoid (seems like everyone!) and who to go to (doesn't have to be an individual).

If anyone is willing to help, I'd be particularly interested in being directed to anyone that deals with retail custodian platforms. If I'm barking up the wrong tree then where would you recommend I might get a more accepting jury!

[shri]

If I'm barking up the wrong tree then where would you recommend I might get a more accepting jury!

Try The Expatriates guide to property, careers, travel and entertainment in Asia or HKExpats.com - the site FOR Hong Kong expats BY Hong Kong expats - Powered by vBulletin

Lots of rich well to do expats and their spouses who could use a good 'from out of town' financial advisor.

[Football16]

I was a bit surprised at the strength of the anger towards IFAs here versus in Canada where I am from and my IFA is very good and respected not just by me but a number of very well off pro athletes who use his services. I know as two were just leaving when my wife and arrived for a meeting. My first IFA died and this guy is our second.

Here it seems insurance agents are linked to one company and I hear nary a good word when someone says IFAs. What I find ironic in this market is how these major insurers will make sure their non sales staff are hired with full pre-employment background checks but these same insurers just bring in sales folk by the dozens knowing that most will fall out. I have always wondered why they'd not put more resources into recruiting the right people and have less early career failures and drop outs and then be held in higher esteem. In Canada they used to do this with real estate agents but now most agencies now take more care to sponsor far fewer people and they choose new recruits much more selectively thus improving that firm's image.

PDLM may be blunt but he is far from inaccurate as to how folks here think when they think of IFAs.