Offshore, out of sight, out of order

My fifth call of the month from an offshore financial adviser. These are the people who lurk outside the highly regulated ambit of UK financial services industry legislation, in just about every place where Britons work abroad – Hong Kong, Dubai, Guernsey, Malta, most major European capitals.

What’s wrong with them? Well, how long have you got? They’re usually unqualified, mostly paid by commission so hugely incentivised to sell unsuitable, cost-loaded products. Oh, and they’re also unregulated. Or at least not registered to give financial advice – with no onshore financial regulator bothered enough about checking up on what they do. In some countries it’s worse – they’re often self-regulated. All of which amounts to much the same thing: there’s no protection available for consumers when it all goes wrong. And it does go wrong, frequently. Continue reading

Brits abroad are prey for poor advice


It must be the warm weather that brings them out. It’s February and 15 degrees in Switzerland, bright sunshine and not a cloud in sight. And the phone’s ringing.

It’s yet another cold call, the fifth this week, from one of the earnest young Britons hired in droves by the usually greedy, often desperate financial services organisations that reside in lightly-regulated financial markets around the world.

Wherever you find Britons working abroad, you’re sure to find a cluster of these financial outfits, mostly managed by oleaginous shysters who couldn’t hack it in London, and staffed by ingenues with barely a grasp of finance know-how beyond the obligatory in-house crash-course in hard-selling. Continue reading

Pensions misery for millions

Millions of Britons expect their pensions to be worth less than they expected when they took the policies out. And more than eight out of ten Britons contributing to a pension, some 16.7m people, expect a shortfall in the value of their policies when they retire.

If people’s worst fears are realised, pensioners will be £159bn worse off. The headline figure sounds dramatic but reflects a growing gulf in the actual value of pension plans against the projected value when they first took them out. Continue reading