Investing Top Tips: Who’s Really Advising You?

by | Jun 20, 2024

Among the malpractices that expats should be particularly aware of, is investment advice provided by unlicensed advisers.

The financial sector is heavily regulated, for good reason. When companies are entrusted with protecting and growing clients’ wealth, it’s imperative that they act responsibly and with accountability.

Unfortunately, the strictest regulations can’t prevent certain companies from trying to break the rules for their own benefit. Among the malpractices that expats should be particularly aware of, is investment advice provided by unlicensed advisers.

According to James Pearcy-Caldwell, founder of Aisa International, an investment company which focuses on helping expats in Czechia, this practice is “common across the whole of Europe” and leaves clients with “virtually no protections” if something goes wrong.

Aisa International’s experts have researched this troubling topic and created a white paper detailing what clients should know before taking investment advice. The white paper, which includes a Due Diligence Questionnaire with guidance, is available on request.

Why do dodgy advisers link clients to non-EU firms?

A common way in which clients are snared into accepting unlicensed advice is when an unlicensed adviser links them with a non-EU investment firm, including UK- and USA-based firms. These advisers typically only have an IDD license, allowing them to provide advice on insurance products, but not investments. By linking clients with a foreign entity which has the MiFID license required to provide investment advice, they aim to get around this regulatory obstacle.

Such questionable advisers often …

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The views expressed in this article are not to be construed as personal advice. Therefore, you should contact a qualified, and ideally, regulated adviser in order to obtain up-to-date personal advice with regard to your own personal circumstances. Consequently, if you do not, then you are acting under your own authority and deemed “execution only”. The author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Importantly, where this article is dated then it is based on legislation as of the date. Legislation changes but articles are rarely updated, although sometimes a new article is written; so, please check for later articles or changes in legislation on official government websites, as this article should not be relied on in isolation.

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Post written by:

James Pearcy-Caldwell

James founded and runs Aisa with an emphasis on a pro-client and transparent approach. He is always looking for the most suitable solution for the benefit of the client. He has been in the field of investment advice since 1998, and therefore fully understands the necessity of open communication and honesty. James is certified in many financial areas in several countries and also holds the most prestigious European certificate in investment planning EFP (European Financial Planner).

Aisa International is the only financial advice service company specialising in advice for expats that is regulated as a Securities Trader in the Czech Republic, USA, and UK.