Having relocated to the United Arab Emirates eight years ago, Craig Holding, a financial adviser and chairman of the Australia Business Council Dubai, told ifa there are significant opportunities for Australian-qualified planners offshore.
“There is huge opportunity in the [independent financial adviser] market here as the expat population increases,” he says.
“There are more than 16,000 Australians living [in Dubai] and less than 10 Australian-qualified financial advisers.
“The main work opportunity for Australian advisers is helping Australians here with their superannuation from back home; familiarity with the Australian super system is sought after in the market here.”
The promise of offshore business opportunities may be particularly attractive to those advisers that are accustomed to a commissions-based remuneration model, said Holding – whose own company, Acuma, is an offshore advice firm that works on a 100 per cent-commission basis.
While there is a licensing system operating in the UAE – which is modelled closely on Australian and UK financial services laws – Holding says it “doesn’t go anywhere near as far as in Australia”.
Holding, who is a former Westpac adviser and first moved abroad in part due to fears about increasing regulation, says he thinks FOFA will inspire more advisers to look to global opportunities.
“Two things will happen after FOFA, both resulting in a massive ‘brain drain’,” he said.
“Some advisers will get out of the industry and move on and do something else – which is what I would do if I came back home because the regulatory environment is just not worth it –but others should think about moving offshore and moving to a less regulated growth market like Dubai.”
It is interesting to look back at what is happening in the Australian market under FOFA. As I said to Aleks when we spoke I am happy that I moved overseas when I did. If you are looking to go overseas make sure the firm is correctly licensed. In the UAE if the firm does not hold the following licenses then be aware.
Emirates Securities and Commodities Authority – http://www.sca.ae
Central Bank License
Ministry of Economy License
Health Authority of Abu Dhabi.
Whilst the regulation is less in this market, however this is changing quickly, you do need to work with a good firm that has invested in the correct licenses.
If you are a self starter adviser and looking to come to the middle east drop me a line and we can have a chat.
Cheers
Craig
I’m with you Craig. I’ve left Oz and am setting up in Asia. It’s not a case of running away from an over regulated industry but more of one of, why put up with it all if you dont have to? Much better work life balance and profit margin (% of course) here than back in Oz.
I could not agree more with Craig’s comments. The industry is over regulated and everybody knows it.
Craig this is already happening more and more as more countries are adopting the Australian models less some the areas you are highlighting. Sadly these continued increases in regulations are forcing up the costs of the dealer groups and advisors. We see today PI has risen an average of 50% and on the other hand we have clients not willing to pay or want every thing cheap. Commissions as log as disclosed do not bother clients as they do not actually have to write out a cheque. Over regulation will reduce the opportunities for more australians to seek advice.
I think I am pretty close to the mark when I say we advisers just want to help our clients make informed and well researched decisions. How this can ever be accomplished efficently when we spend in excess of 50% of our time completing “a..e” covering functions developed by the politicians, regulators and legal luminaries who are ill informed and media driven has me also looking elsewhere for opportunities. Dubai sounds like it may have a balance we could all work harmoniously within and I suggest closer to home some but not all of the Asian countries may also present opportunities worth pursuing!