Money is not everything in life but it sure is important, isn’t it? Your finances are directly linked to your standard of living. Consequently, to maintain and upgrade your standard of living, the need for investments and wealth management has only increased over the years. All thanks to the rising inflation. While you may not have the time or the knowledge to manage your wealth in the most efficient way, there are plenty of firms that can help you with financial advisory and investments in Dubai. 

But how does one choose the right financial advisor in Dubai? Well, as discussed in our podcast hosted featuring Stuart McCulloch, Executive Director at The Fry Group, it is possible! Just get answers to the following three questions and you are on your way to finding the right financial industry experts in Dubai for you: 

Q1) Is the financial advisor licensed? 

A licensed company shows that it has been properly vetted by the government to provide the approved services. There are namely two licensing authorities in Dubai, DED (Department of Economic Development) and DIFC (Dubai International Financial Centre).

Now, even if a business is licensed, it does not directly qualify you to be a financial advisor.  Hence, even if a business is licensed, check the activities they are allowed to do under the issued license. Offering financial services have to be in the list of allowed services.

Q2) Is the financial advisor regulated? 

A firm offering financial advisory and investments in Dubai has to be regulated to protect the interests of investors. Moreover, knowing that you are dealing with a regulated financial advisor in Dubai helps to develop trust and a sense of security against financial scams. 

In Dubai, there are regulatory bodies for almost every industry. In the financial sector, you can typically find companies regulated by DFSA (Dubai Financial Services Authority) for DIFC, Central Bank of UAE, ESCA (Securities and Commodities Authority), and the Insurance Authority. 

Financial industry experts in Dubai, to establish trust, usually disclose the entity that regulates them. To cross check this information, you can easily log on to the regulator’s website and find all the information you need from there. 

Q3) What are the qualifications of the financial advisor? 

Legally, in Dubai, a service provider does not need any relevant qualifications to start their own financial advisory business. However, it is better to only associate with financial advisors who have relevant qualifications. For obvious reasons. You can easily find out about the qualifications of a financial advisor by directly asking them about the same. 

Doing your due diligence is important to choose the right financial advisor for you. While you are shortlisting firms that offer financial advisory and investments in Dubai, do check their commission structures as well. If the financial advisor is transparent with you regarding their charges, there are good chances that they are a trustworthy entity.

For more information on this topic, you may want to listen to the whole podcast with Stuart as he shares his experience of being licensed with the DIFC and being highly regulated by the DFSA.