How To Decide Which Financial Adviser To Work With

Finding a financial adviser you can trust is essential for securing your financial future. With so many options available, it’s easy to feel overwhelmed. Discuss the following key aspects with any potential adviser to ensure they offer the right level of expertise and protection and align with your financial goals.

1. Qualifications and Professional Standards

When selecting a financial adviser, check their qualifications. In the UK, advisers should hold a Level 4 qualification or higher, which is the industry standard. Many UK pension providers now require all advisers—regardless of location—to meet this level.

Some advisers also hold specialist qualifications or are Chartered by professional bodies such as:

- The Chartered Institute of Securities & Investments (CISI)

- The Chartered Insurance Institute (CII)

Being chartered indicates that an adviser undergoes continuous learning, recording at least 35 hours of Continuing Professional Development (CPD) annually. This ensures they provide the most up-to-date financial advice.

2. Licensing and Regulatory Oversight

Regulation determines the level of client protection you receive. The highest standard in the EU is a full MiFID II licence, which allows advisers to provide comprehensive investment advice and ensures professional indemnity insurance in case of disputes.

Some advisers operate under an Insurance Distribution Directive (IDD) licence, which only permits them to recommend insurance-based financial products. If an adviser is offering broader investment advice without a full MiFID II license, they may be working outside regulatory guidelines.

3. Investment Strategies and Transparency

The type of investments an adviser recommends can indicate their approach to risk and ethics. Ask whether they primarily use:

✔️ Main market funds and ETFs (exchange-traded funds)

⚠️ Structured Notes (often marketed with "guaranteed returns" but carrying hidden risks)

Structured Notes can be risky and may lose value immediately after purchase. While they may yield profits in some cases, alternative investments often offer better returns with lower risk. Some advisers receive high commissions for selling these products, which may not always align with your best interests.

4. Choosing a Financial Adviser Abroad

If you’re considering a financial adviser outside the UK, be extra cautious. Licensing standards vary, and not all countries enforce strict oversight. Check whether the adviser is backed by a reputable regulatory body and offers full disclosure on investment strategies and fees.

Final Thoughts

Choosing a financial adviser is one of the most important financial decisions you’ll make.

Look for:

✅ Recognised qualifications and regulatory compliance
✅ Investment strategies that align with your risk tolerance
✅ Clear fee structures with no hidden commissions

By taking these steps, you can ensure you work with an adviser who prioritises your financial security and long-term success.

Ingenium Financial meets all the criteria outlined above, holding the highest industry qualifications, full regulatory compliance, and a commitment to ethical, client-focused financial advice.

Looking for Chartered Financial Adviser operating under full EU MiFID II licence? Get in touch with us for a free complementary consultation.

Text author: Phil Morris

7 February 2025

Frequently Asked Questions

Tax efficient savings and investments

How to pay less tax in Portugal?

For expats living in Portugal there are some tax saving solutions available for those who have ability to invest lump sum cash savings to generate future income.

The solutions tend to be what are known as Portuguese Compliant Investment Bonds. Can be introduced to you by an appropriately licenced Financial Adviser.

The solutions are fully allowable to all residents of Portugal and are compliant with the Portuguese tax code.

What is a Portuguese Compliant Investment Bond (PCIB)?

A tax efficient savings and investment wrapper approved by Portuguese IRS for use by residents of Portugal.

Owners can benefit from tax free growth and reduced level tax on income.

Need full explanation and advice prior to establishment.

How can an expat invest in Portugal?

Expats can invest in Portugal through regulated financial institutions using structures that allow access to both Portuguese and international investments.

Common options include bank investment accounts, brokerage platforms, and insurance-based investment structures such as Portuguese-compliant bonds (PCIBs). The most suitable option depends on residency status, tax situation, investment goals, and whether the individual plans to remain in Portugal long term.

It is important for expats to consider Portuguese tax rules, reporting obligations, and cross-border implications before investing.

Can I manage a PCIB myself?

No, the financial regulator requires the providers of PCIBs to insist on the appointment of an appropriate Financial adviser.

The FA will explain some of the most complex features of the PCIB and ensure that it is well managed going forward. The investment portfolio held within a PCIB can be created and managed in several different ways to suit the client’s needs. To ensure that the FA provided to you comes under the highest levels of scrutiny and protection, seek an adviser who works directly under a MiFID II licence.

If you are a resident of Portugal you may want to seek an adviser based in Portugal who is familiar with local taxation and for potential ease of communication.

What are the available tax-efficient saving structures for residents and expats in Portugal?

Tax-efficient saving structures in Portugal typically include insurance-based solutions, retirement plans, and carefully structured investment portfolios.

For residents and expats, Portuguese-compliant insurance bonds (PCIBs) are often used to defer taxation on investment growth, simplify reporting, and allow flexible investment management. Other options may include pension solutions (PPRs) or standard investment accounts, depending on personal circumstances.

Does a PCIB only allow investments inside Portugal?

No, a PCIB allows investments in a globally based portfolio, subject to minor constraints.

The investment strategy spreads capital across various asset classes, regions and currencies to reduce risk and enhance potential returns. A PCIB is typically located in either Ireland or Luxembourg.

As both countries are located within the EU, the PCIBs are fully compliant with Portuguese tax law (one of the qualifying criteria).

Sometimes people confuse these structures with golden visa requirements.

Is there a minimum investment amount required to open a PCIB account?

Yes, the minimum cash amount typically is €100,000 or currency equivalent.

There are several providers, and the percentage fee basis will typically reduce the more you invest.

Although the investment is made whilst being resident in Portugal, other major currencies aside from Euro can be used or held in the investment, such as USD and GBP.

Fees, licence, qualification

What is the average cost of using a financial advisor?

Using a financial adviser could cost approximately 1 percent p.a. There are also charges applicable to the use of a financial solution.

Only a MiFID II adviser is required to provide you with explicit, clear and transparent information in relation to your expected fees and charges. Some of the applicable fees provide added insurance relating to the advice you receive and indemnify your investment.

How should you choose a financial adviser as an expat?

Look for an adviser who is qualified to UK level 4 or EU level 5 or equivalent and works under a MiFID II licence.

An adviser with knowledge of both Portugal and your original home country would be advantageous.

Seek an adviser experienced in cross-border advice.

How to check the credentials of a financial planner?

You should familiarise yourself with the credentials of the individual providing the advice to you and understand how they are licensed and regulated.

You can engage with a Chartered adviser who works under a MiFID II licence.