“The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong it usually turns out to be impossible to get at and repair. ( Douglas Adams )‘‘
Let’s face it, the World is not perfect. No matter how hard we try to make sure things go smoothly, a banana skin appears and then the inevitable happens.
Time and time again, we read about failed investment schemes, pension moneys disappearing, unexpected tax bills and the list goes on and on.
In the world of offshore advice, regulation is sometimes good, sometimes patchy and sometimes non-existent. When things go wrong, there is often a limit to what a regulator can do, especially if the investments or the advice are unregulated in the first place.
It seems that when a product or investment fails, the blame game starts and the buck passing begins, as do the excuses. Some examples:-
“We were not giving you advice, we were merely introducers, we wrote in the small print that you should take independent advice’’
“You should take this up with the insurance company/trustees, as they allowed the investments to be placed within their product “
“As an insurance company/trustee, we cannot be held liable for the advice given by other third parties’’
‘’We are not tax advisers, it was up to the client to take separate tax advice and we are not liable for the tax bills of our clients’’
I could go on, but it is all there to be seen on the internet.
What can investors do when engaging an adviser? There are a few things that may help.
Even the best laid plans of mice and men go awry and, should that happen, it helps to know where the buck stops and who is responsible.
Let’s face it, the World is not perfect. No matter how hard we try to make sure things go smoothly, a banana skin appears and then the inevitable happens.
Time and time again, we read about failed investment schemes, pension moneys disappearing, unexpected tax bills and the list goes on and on.
In the world of offshore advice, regulation is sometimes good, sometimes patchy and sometimes non-existent. When things go wrong, there is often a limit to what a regulator can do, especially if the investments or the advice are unregulated in the first place.
It seems that when a product or investment fails, the blame game starts and the buck passing begins, as do the excuses. Some examples:-
“We were not giving you advice, we were merely introducers, we wrote in the small print that you should take independent advice’’
“You should take this up with the insurance company/trustees, as they allowed the investments to be placed within their product “
“As an insurance company/trustee, we cannot be held liable for the advice given by other third parties’’
‘’We are not tax advisers, it was up to the client to take separate tax advice and we are not liable for the tax bills of our clients’’
I could go on, but it is all there to be seen on the internet.
What can investors do when engaging an adviser? There are a few things that may help.
- Get the adviser to clarify, in writing, the full scope of the advice being given before accepting a recommendation.
- Ask to see evidence that the adviser is licenced for that advice and registered with a financial regulator. This means checking that the adviser is not only licenced, but that the advice falls within the scope of that licence. (For example, an insurance licence does not cover investment advice)
- Ask to see evidence that the adviser has Professional Indemnity Insurance that covers the specific advice being given.
Even the best laid plans of mice and men go awry and, should that happen, it helps to know where the buck stops and who is responsible.