While over half of UAE investors use a financial adviser, less than a third consider them trustworthy, according to a new study from the CFA Institute on trust in the country’s financial services sector.
Fifty-four per cent of UAE investors polled by the global association of investment professionals said they employ the services of an adviser, yet only 32 per cent assume they are reliable.
This compares to 29 per cent of UAE investors that said trust must be proven at least once before they will give their adviser the benefit of the doubt.
"Trust is essential in the world of finance, where well-functioning markets are necessary to create value, and in investment services, where experts work to safeguard and grow the financial wealth of their clients," the CFA Institute said in its report, The Next Generation of Trust: A Global Survey on the State of Investor Trust, which polled 3,000 retail investors.
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Investments year in review: Investors wait for final push on mis-selling regulations
UAE financial advisers feel strain of tighter regulations
UAE Central Bank ramps up clampdown on banks mis-selling consumer and investment products
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The study, which found a significant gap between what investors expect from their financial advisers and how satisfied they are with the relationship, comes as the UAE’s financial advisory industry faces a raft of new regulations.
The UAE Insurance Authority and the Central Bank of the UAE both issued circulars last year outlining changes to the way savings and investment schemes are sold in the UAE.
The IA’s second draft circular, released in May as a follow up to a 2016 release, reinforced plans to cap total commission payable to entities involved in the sale and distribution of insurance products, such as financial advisers. It also proposed banning the use of charges such as advice fees and trailing commission fees on the products sold.
The Central Bank issued a circular in May advising banks and finance companies to resolve all outstanding mis-selling complaints “amicably” and within a deadline of just 90 days.
Both entities were responding to a high number of complaints from customers over expensive fixed-term investment plans.
With trust an issue for UAE investors, the report found many turn to other sources for financial advice with 31 per cent choosing friends and family and 15 per cent online research.
Despite this, when selecting an adviser, global investors place more emphasis on personal trustworthiness and ethical conduct, while investors in the UAE are more concerned with returns. UAE investors are also less concerned with the credentials and track record of their advisers than their global counterparts.
"The survey shows that people rely on their friends and family here for advice, and the bad reputation of many financial firms and advisers tarnishes the entire industry," said Steve Cronin, the founder of DeadSimpleSaving.com, which helps residents invest their money sensibly. "I wish people would be even less trusting though, as plenty are still getting suckered into buying long-term savings plans that are expensive, badly invested and hard to escape from."
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Central Bank turns attention to complaints of mis-selling investment products
Fixed-term investment plans are failing UAE customers, says Friends Provident
UAE Insurance Authority to offer investors better protection with more stringent regulations
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When it comes to fees, a hot topic of discussion in the UAE due to the high prevalence of expensive investment products, 57 per cent of UAE investors said it is important that fees reflect the value they receive from the adviser. One in five also said they had switched investment firms due to an increase in fees.
The CFA Institute has called for universal disclosure of fees across the globe to raise levels of investor trust. Globally, 84 per cent of investors say their trust in the system is mostly driven by full disclosure with less than half satisfied.
“Higher trust comes with higher expectations, and we are not there yet until we can consistently prove our value to clients by providing solutions, not simply products," said Paul Smith, president and chief executive of the CFA Institute.
"We need universal disclosure of fees and performance to drive home this message."
For the industry to rebuild trust with its customers, Mr Cronin said it needs to only hire those with advanced and reputable financial qualifications.
"It needs to be fully transparent about all costs, fees and commission, ideally moving away from commission towards platform fees or hourly rates for advice," he said. "It needs to transform the remuneration of advisors, away from upfront commission and towards rewarding sustained service and out-performance. Finally, it needs to move away from selling complex insurance products disguised as savings plans."
Trust in advisory firms will be tested even further in the coming months as economists warn of a US recession in 2020, tying in with the presidential campaign, due to fading fiscal stimulus and rising interest rates.
"The [US] economy is poised for a bumpy ride in 2020, and if enough policy mistakes pile up - overly restrictive fiscal policy and excessively tight monetary policy - this could certainly create sufficient downdrafts to create a recession, or at the very least, a growth recession," warned Bloomberg Economics analysts Carl Riccadonna and Yelena Shulyatyeva.
Despite this outlook, 70 per cent of investors in the UAE believe their advisory firm is “well or very well prepared” to handle the next crisis, compared with just 55 per cent of investors globally.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Third Test
Day 3, stumps
India 443-7 (d) & 54-5 (27 ov)
Australia 151
India lead by 346 runs with 5 wickets remaining
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
CABINET%20OF%20CURIOSITIES%20EPISODE%201%3A%20LOT%2036
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%209
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NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
Company%20profile
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The specs: 2018 Mazda CX-5
Price, base / as tested: Dh89,000 / Dh130,000
Engine: 2.5-litre four-cylinder
Power: 188hp @ 6,000rpm
Torque: 251Nm @ 4,000rpm
Transmission: Six-speed automatic
Fuel consumption, combined: 7.1L / 100km
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
COMPANY%20PROFILE
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Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Zayed Sustainability Prize
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
SOUTH%20KOREA%20SQUAD
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