Q: I have no previous experience of working with financial advisers. What criteria/credentials should I consider before selecting one?

A: How do you find a financial adviser you can trust? There are literally hundreds of people in Dubai calling themselves "financial advisers," so how can you sort the sensible ones from the sharks?

Probably the first best step is to do some research. Start with referrals from friends and colleagues who use the services of a professional financial adviser. Ask them how they're finding the service, how long they've worked with the adviser and whether they would recommend them. If people you know well have a good relationship with their financial adviser, chances are that the adviser will also be able to understand your own personal situation quickly. If you use the services of a lawyer or solicitor regularly, you might also ask them for a recommendation.

While word-of-mouth is important, it shouldn't be the sole criterion. Professional qualifications are also extremely important is ensuring that your adviser has the training and market understanding necessary to be truly effective.

One of the challenges of finding an adviser in the Middle East is that there is not an agreed minimum standard of qualification for entry into the sector. Although there is ongoing work to agree an industry-wide standard, at the moment you are probably best advised to find a professional with a globally-recognised qualification.

The Financial Advisers International Qualification (FAIQ) developed by the Chartered Insurance Institute is one such benchmark. Designed for markets with a limited regulatory environment like the UAE, the FAIQ provides professionals with a solid grounding in the core financial and life assurance products, and also offers guidance on sound professional practice, thereby providing a framework for ethical behaviour.

People who have successfully passed the FAIQ can apply to use the designation "FAIQ (CII)," enabling you to recognise them in the listings. Other internationally recognised qualifications which may prove relevant to your personal financial needs include Chartered Life Underwriter (CLU), which designates that the holder is a specialist in life insurance and estate planning, and Chartered Financial Consultant (ChFC), which means the holder is a professional financial planner who has completed a series of courses and examinations in areas like economics, insurance, and real estate.

You should also inquire about their professional experience and - in particular - their experience within the UAE market. It's important to know how long your adviser has been in practice and the types of customers he has been working with. It may be the case - if you have family or assets overseas - that an adviser with experience in your home market as well as in the region may be better positioned to fully understand your needs.

Finally, you need to be honest about your own expectations, the services you expect from your adviser and how you will be charged for these services. Currently, the Middle East market is not disposed to fee-based financial advice. Most financial advisers are rewarded through commission paid to them by providers or by referrals from satisfied clients.

The writer is director of sales director at Nexus, the region's leading financial adviser. You can find more advice at www.nexusadvice.com. The opinions expressed above are the writer's and don't necessarily represent views of Gulf News. Readers are encouraged to thoroughly investigate all investment decisions. Please send your questions to advice@gulfnews.com.