How to Find a Financial Adviser When You Live Abroad

The international financial services industry has a persistent problem: too many people who market themselves as "financial advisers" to expats are not regulated in any meaningful way, do not hold appropriate professional qualifications, and are paid through commission arrangements that create significant conflicts of interest.

This is not to say that there are no good advisers serving the expat market — there are many excellent ones. But the proportion of genuinely independent, properly qualified, appropriately regulated advisers is lower in the expat market than in the UK domestic market, and the consequences of choosing poorly can be severe.

This guide explains what to look for, what questions to ask, and how to identify the red flags.

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What "FCA Authorised" Means — and Why It Matters for UK Pension Advice

The Financial Conduct Authority (FCA) is the UK's financial regulator. Firms and individuals authorised by the FCA are subject to conduct rules, capital requirements, professional indemnity insurance requirements, and oversight — and they can be sanctioned, fined, or prohibited from practising if they breach those rules.

FCA authorisation is important for two specific reasons in the expat context:

1. UK pension transfers. If you want to transfer a defined benefit (final salary) pension, or obtain a formal transfer recommendation for any UK pension with a value over £30,000, the advice must (by law) come from a UK FCA-authorised adviser with specific qualifications. Specifically, the adviser must hold the "pension transfer specialist" qualification (a module on top of the core Chartered Financial Planner or equivalent qualification). This is a regulatory requirement — not a preference. Advice from a locally-regulated adviser abroad, however qualified they may be, does not satisfy this requirement for regulated UK pension transfers.

2. UK-regulated products. If you hold UK ISAs, UK-regulated investment products, or want to invest in UK-authorised funds, you generally need advice from an FCA-authorised adviser. Some products can only be sold by FCA-authorised firms.

For expats who retain significant UK pension and investment holdings — which is most of them — access to FCA-authorised advice is therefore important.

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The Difference Between UK-Regulated and Locally Regulated Advisers

The expat financial advisory market typically operates on one of several regulatory bases:

UK FCA authorised. The adviser (or their firm) is authorised by the FCA. This is the most robust regulatory basis for UK nationals with UK assets. Some UK-regulated firms also have local regulatory authorisation in expat hubs.

Locally regulated. The adviser holds authorisation from the financial regulator in the country where they operate — for example, the Securities and Commodities Authority (SCA) in the UAE, CySEC in Cyprus, or the DFSA in the Dubai International Financial Centre. Local regulation provides some protection for investments made locally, but does not authorise UK pension advice.

Unregulated. Some people operating as "financial advisers" or "wealth managers" in expat markets are not regulated by anyone. They may be introducing brokers, insurance agents, or simply unlicensed salespeople. This is not always obvious from the way they present themselves.

Double-regulated. The most comprehensive model is a firm that holds both UK FCA authorisation and local regulatory authorisation (or operates under a cross-border licence). This means they can advise on UK pension matters and local investment matters within a single regulatory framework.

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Questions to Ask Before Appointing an Adviser

The following questions should be asked — and answered satisfactorily — before you appoint any financial adviser.

1. Are you FCA authorised, and what is your FCA number? Ask for the FCA reference number and check it on the FCA Register at register.fca.org.uk. Anyone can check this for free. The register shows whether the firm is authorised, what permissions it holds, and whether any disciplinary action has been taken. This check takes two minutes and is non-negotiable.

2. Are you independent or restricted? An "independent" adviser can recommend products from the whole market. A "restricted" adviser can only recommend certain products or certain providers. Many commission-based advisers in the expat market are restricted — they can only recommend products from the providers who pay them commission. This is a fundamental conflict of interest. Ask specifically whether the adviser is "whole of market" independent.

3. How are you paid? Advisers are paid either through fees (charged directly to you) or through commission (paid by product providers). In the UK, commission on investment products was largely banned under the Retail Distribution Review in 2013. In many overseas markets, commission-based selling continues. An adviser paid on commission has a financial incentive to recommend the highest-commission product, which may or may not be the most suitable for you.

Ask for a clear breakdown of how the adviser is paid, what their annual ongoing fee is as a percentage of assets under management, and what services that fee covers.

4. What are your qualifications? The minimum UK qualification for regulated investment advice is the Level 4 Diploma in Regulated Financial Planning (DipPFS or equivalent). For pension transfer advice, the adviser must also hold the G60/AF3/G80 pension transfer specialist qualification. The highest professional qualification in the UK is Chartered Financial Planner (CFP), awarded by the Chartered Insurance Institute.

Ask for specific qualifications and verify them. Impressive-sounding designations with acronyms you do not recognise may or may not correspond to rigorous professional standards.

5. Do you hold professional indemnity insurance? Professional indemnity (PI) insurance means that if the adviser makes a negligent error, you have recourse — the insurer pays the claim rather than you having to sue an adviser who has no assets. FCA-regulated firms must hold PI insurance as a regulatory requirement. Ask for confirmation.

6. What is your specialisation? A good adviser for a British expat in the UAE has different expertise from a good adviser for a UK-based retiree. Ask specifically about the adviser's experience with:

• UK pensions (including SIPPs, final salary transfers, and the post-LTA regime — Lump Sum Allowance, Lump Sum and Death Benefit Allowance, and pension access age rules)
• Cross-border tax planning
• The specific country or countries relevant to your situation
• Estate planning for internationally mobile individuals

7. Who holds my money? Your investments should be held by a custodian or platform that is independent of the adviser. Ask where your assets are actually held and what protection exists if the adviser firm fails. UK-regulated investments are protected up to £85,000 per institution by the Financial Services Compensation Scheme (FSCS); this does not apply to offshore products.

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Red Flags

The following should cause you to pause — and, in most cases, to walk away.

High upfront commission or "initial charges." Legitimate fee-based advice may involve an upfront fee for the advice given, charged clearly and transparently. An "initial charge" of 5–7% deducted from your investment from day one (common in commission-based offshore markets) is a red flag — you are immediately down 5–7% before any investment has occurred.

Very long lock-in periods. Some offshore products (notably certain offshore bonds and structured products) have surrender penalties extending 7–10 years or more. These lock-in periods are often associated with high embedded commission — the product provider pays the adviser up front, and the lock-in period ensures the product stays in force long enough for the provider to recoup this cost from charges. Ask specifically whether there are any surrender penalties and what they are.

Pressure to transfer UK pensions quickly. Legitimate pension transfer advice takes time. It requires gathering information, conducting a transfer value analysis, considering all alternatives, and producing a suitable advice report. Anyone who suggests a UK pension transfer can be arranged quickly and easily — especially with implied or stated tax advantages — should be treated with extreme scepticism. Fraudulent "pension liberation" and "QROPS scam" arrangements have cost UK expats enormous sums.

No FCA number, or reluctance to provide one. A legitimate FCA-authorised firm will provide its FCA number readily and without hesitation.

Estate agent or property developer referrals. Advisers referred by estate agents or property developers often have financial relationships with those referrers. This does not mean they are necessarily bad, but it is a conflict of interest worth understanding.

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Why Independent Global Firms Are Better for Complex International Needs

An expat's financial situation typically straddles multiple jurisdictions — UK pension assets, investments in a third country, spending in a local currency, and estate planning implications in two or more legal systems. This complexity requires an adviser who genuinely understands cross-border financial planning, not one who is competent in their local market but unfamiliar with UK rules.

Independent global firms — firms that are properly regulated in multiple jurisdictions, hold genuine qualifications, and charge transparent fees — are better placed to handle this complexity than either a UK-based firm unfamiliar with expat realities or a locally-regulated expat adviser unfamiliar with UK pension and tax rules.

The distinction matters most when it comes to pension transfers, estate planning, and tax efficiency — the decisions that have the largest long-term impact on an expat's financial outcome.

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This article provides general information only. Regulatory status, authorisations, and adviser qualifications change. Always verify an adviser's regulatory status directly with the relevant regulator before appointing them.

How Global Investments Can Help

Global Investments is an independent international wealth management group with over 32 years of experience serving internationally mobile British nationals. Our regulated services are provided through our authorised entities (NFS Insurance Advisors, Agents and Sub Agents Ltd — ICCS Licence 5689; and Financial Services Network Ltd — Mauritius FSC C116016070), and where UK-regulated advice such as a defined-benefit pension transfer is required it is provided by an FCA-authorised Pension Transfer Specialist we work with. We charge transparent fees, operate internationally wherever our clients are based, and have no financial relationships with property developers or other referrers. Contact us to arrange an initial, no-obligation conversation.