| TRAITS OF A BOGUS FINANCIAL ADVISOR | | | | financial markets. |
| It has become a common occurrence for people, | | | | There are several tell-tale clues of a sleazy financial |
| especially those in the middle and upper class brackets | | | | advisor. One who has picked up skills from the field |
| to solicit the services of financial advisors. Financial | | | | and not certified is very likely to be unprofessional in his |
| advisors, like any other professionals fall into two main | | | | her dealings. The chances are good that securities |
| categories: the true expert and the bogus. The begging | | | | shares recommended will be appropriate, if the |
| question is: how does one tell the two apart? I | | | | financial advisor or the company he/she works for is |
| personally think there is a fine line between the two | | | | not tied to or totally independent of the company |
| categories and one will have to keep his eyes open, | | | | whose securities/shares are offered. |
| ears attuned and wits alert, in order to realize the | | | | Steer clear of financial advisors who do not spend |
| difference. | | | | enough time to get to know what your real financial |
| Essentially, a financial advisor is supposed to ask his | | | | needs are. Such advisors will come off as wanting to |
| her prospect necessary and sufficient questions to | | | | just get the commission they are entitled to in their |
| unveil his/her personal circumstances and 'actual' | | | | dealings with you, and not actually interested in helping |
| financial needs and objectives. It is important that the | | | | and guiding you to achieve your financial goal. If you |
| level of risk the prospect is comfortable with is | | | | are not the right prospect, a 'true' expert will candidly |
| ascertained during the 'diagnosis'. A 'qualification' of the | | | | let you know, hopefully at the 'qualification' stage or |
| prospect by the expert, after the gathering of relevant | | | | otherwise, as soon as it dawns on him/her. |
| information is critical. 'Qualification' is the process of | | | | A thorough research into the company the advisor |
| establishing whether the financial advisor has access | | | | works for, will be a step in the right direction. It will be a |
| to the appropriate financial tools with benefits that will | | | | bonus if you will be chanced to have a chat with some |
| perfectly match the personal circumstances and | | | | of his/her customers chosen at random, to assist you |
| financial needs of the prospect, giving regard to | | | | to get a feel of the kind of service you may get. Note |
| various factors, including the prospect's budget. It | | | | that it is not just the service you get during the sale or |
| embraces a decision as to whether or not the financial | | | | dealings that matters, but more so the |
| advisor is dealing with the right prospect. This is a | | | | after-transaction service. |
| stage that can distinguish the true expert from the | | | | The financial markets are very dynamic, and it is |
| fake. | | | | necessary that one's personal circumstances and |
| Integrity and trust must underpin the financial advising | | | | financial situation are regularly reviewed by the advisor, |
| role, and one has to be really wary of who he/she | | | | and any necessary changes to the financial strategy |
| asks for advice from. A good financial advisor is | | | | implemented with ample speed and agility, to |
| supposed to be your helper, your guide and your | | | | guarantee the attainment of financial objectives. A |
| teacher, in your journey towards your financial goal. | | | | good advisor must progressively add value to the |
| Needless to say he/she must have and be seen to | | | | client. |
| have sufficient knowledge in the field of finance and | | | | David Opoku |
| investments, and must be abreast of trends in the | | | | BA Hons. |