How to Choose a Financial Consultant in the UAE

Why choosing the right adviser matters

Whether you're building long-term wealth, preparing for retirement, or managing international assets, choosing a financial consultant in the UAE can significantly affect your financial trajectory. 

The UAE is a global hub for expatriates and international investors—but the wealth management industry here operates under a patchwork of regulations. Not all advisers are equal, and sadly, not all are fully transparent.

Many expats have been sold opaque offshore bonds, locked into high-fee insurance wrappers, or poorly advised on pension transfers. These decisions can cost tens of thousands over time—and the damage is often irreversible.

Choosing the right financial adviser is about much more than performance. It's about trust, transparency, and knowing they’re working in your best interest.

Regulation: Who really oversees your consultant?

Unlike in the UK, where advisers are tightly governed by the FCA, financial consultants in the UAE fall under multiple jurisdictions depending on their setup. Some are fully licensed in the UAE. Others are not.

Understanding your adviser's regulatory status is your first line of defence.

Local UAE Regulators

• Securities and Commodities Authority (SCA) – Oversees UAE mainland firms dealing in securities and investment advice. Use the SCA Licence Directory to check if your adviser is authorised.
• Dubai Financial Services Authority (DFSA) – Regulates firms within the DIFC free zone. Search the DFSA Public Register for licence verification and enforcement actions.
• Abu Dhabi Global Market (ADGM) – Oversees financial entities in the ADGM. Check credentials using the ADGM FSRA Public Register.

Offshore Advisers

Some consultants operate under offshore licences (e.g. Isle of Man, Mauritius, BVI), marketing to UAE residents. While they may be regulated abroad, they often lack legal presence in the UAE. This limits your recourse in the event of mis-selling or poor advice. 

🔍 Always ask: Are you licensed in the UAE? Who regulates you? Can I verify your licence in a public directory?

Understanding fee structures: Who really pays your adviser?

This is where the distinction between independent advice and sales becomes critical. Many complaints stem from this single issue: undisclosed commissions.

1. Commission-Based Advice (Still Common in the UAE)

• The adviser is paid a lump sum by the product provider (e.g. insurance company or fund manager).
• Your investment may be tied up in a product with exit penalties or poor transparency.
• The adviser has an incentive to push higher-commission products—not necessarily what suits your needs.

Example: A $250,000 offshore bond might pay the adviser $15,000–20,000 in upfront commissions—but you’ll never see that cost broken down.

2. Fixed Fee or Transparent Fee Models

• You pay for the advice directly—either hourly, by project, or a flat percentage of assets.
• These models are clearer and eliminate most conflicts of interest.
• Reputable firms provide upfront fee schedules and clear deliverables.

Ask this: Are you paid by me—or by the product provider? What are your total fees, both upfront and ongoing?

Questions to ask before hiring a financial consultant

Whether you're meeting in person or over a video call, prepare a shortlist of questions that go beyond the pitch:

Are you licensed by a UAE regulator? What’s your licence number?

A credible adviser will immediately state which regulator they fall under (e.g. SCA, DFSA, or ADGM) and provide a licence number that you can verify in the relevant public register.

Do you operate under a fiduciary standard (acting in my best interest) or just suitability?

Look for an adviser who commits to a fiduciary duty. This means they are legally obligated to prioritise your financial wellbeing—not just sell you suitable products.

How do you get paid—can I see a breakdown of fees and commissions?

You should expect a clear, written breakdown of all costs, including whether the adviser receives upfront or ongoing commissions from product providers.

Can I see a sample financial plan or investment proposal?

Professional advisers will be able to show you a redacted sample of their financial planning output. This helps you assess their attention to detail and planning style. The best advisers provide cashflow models that are used to determine 

Do you recommend only proprietary products or operate an open-architecture model?

The best advisers give you access to a broad selection of funds and products from different providers—not just those they have a financial relationship with.

Red flags to watch out for

Some warning signs are subtle. Others are glaring.

🚩 They can't show proof of regulatory authorisation.

🚩 They’re evasive when asked about commissions.

🚩 They push insurance-linked investment products heavily.

🚩 The proposal includes long lock-ins or vague terms.

🚩 They suggest signing quickly or say the opportunity is "time-limited."

Remember: good advice should never be rushed. If something feels off, walk away.

FAQs

Do all UAE advisers need a licence?

Yes. If they are offering investment advice, portfolio management, or dealing in securities, they must be authorised by a UAE financial regulator.

Is it better to work with a UK-based adviser?

Not necessarily. While UK regulation is robust, many UK advisers can’t legally advise non-residents. Choose someone authorised to support international clients.

What are offshore bonds and why are they controversial?

These are investment wrappers often linked to high commissions, lack of transparency, and long lock-in periods. They can work in some scenarios, but many expats regret buying them.

Can I get independent advice in the UAE?

Yes—but it's rare. Look for firms with clear, fixed-fee models and full regulatory approval. Avoid consultants who only recommend one provider’s products.

Final Thoughts

Finding a financial consultant in the UAE is about asking the right questions and doing your homework. There are excellent advisers in the region—but there are also far too many operating in grey zones, misrepresenting their status, or chasing commissions.

Your wealth deserves better.

Start with regulation. Then dig into the fee model. And don’t settle for vague answers.