'Free cheese is just a mousetrap'
All of the seminars I see
advertised in the Expat Press might be better described as ‘Starting up the
Sausage Machine’ It’s time to be aware – the big, impersonal firms call this ‘Seminar
Season’.
Let me explain;
The primary purpose for holding the seminar is to
maximise on telephone numbers, email and addresses. The more the better! It’s
just the start of a predictable process.
The seminar is ‘informative’ but the commencement of
a product sale. Imparting knowledge is completely dedicated to the aim of
selling a specific product.
You are encouraged, whilst you drink their coffee or
eat their cakes to see their ‘local expert’. His title (I’m not sexist but they
are) could be all manner of exaggerations like Director, Partner, Regional
Manager or Financial Planning Consultant. The only title he won’t have is
actually what he really is – Salesman. He’s not
an adviser, he doesn’t act as an agent, he represents the company as a
salesman.
You complete a Fact Find. Most likely called
Financial Planning Questionnaire or something equally pretentious but it comes
to the same thing. The salesman will come back to you with a Report, just for
you, within two to three weeks.
Remember that the salesman won’t tell you he is
giving advice because if it all goes wrong later, somebody else is responsible!
Your Report, the one especially for you, is produced
in what can best described as a Factory. It has pre-produced products called
reports, which have six or seven changes added to match your circumstances.
That’s why you completed the Fact Find, not to give you advice or plan your
future requirements but for the Factory to produce your Report.
Most Reports you get will not disclose the commission
being paid. This may come as a surprise, as in the UK
The Report may seem very professional but you were
part of THEIR PROCESS not YOUR NEEDS.
I regularly recommend advisers and if you want individual financial planning please email me
The advisers I recommend will give you all of the
following;
- An
individual and appropriate process to establish your needs and an
individual recommendation
- Always
disclose commission and fully explain the charges associated with their
advice
- Give
you a NAMED individual who will be your adviser and who is ultimately
RESPONSIBLE for the advice given
- Assess
your attitude to investment risk and match that to any advice given
- Not
charge an up front fee
Give me a few brief details of what you seek and I’ll
be happy to make the appropriate recommendation to a Professional, Regulated
and Qualified Financial Adviser. Just email me
You may wish to look at some other Posts from my Blog
Getting Professional Advice
Getting a Second Opinion (important if you’ve had a ‘Report’)
Tax Avoidance and Tax Evasion
If there is just one major element of the 'Seminar' process it is this - FSA regulated firms who REFUSE to openly disclose commissions & charges - it's YOUR cash. Ask up front if they will declare all the commissions, in their Report.
David Goodall
Financial Pages in Spain
