Financial Advisor Recommendations

[Arkady]

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As other have said, overall this 'industry' is uncontrolled in Thailand and overall, has a fairly shoddy history.

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If by "industry" you mean the expat IFAs then I'd probably agree. There is very little regulation at all and overall many do have shoddy histories.

If however, by "industry" you're including professional onshore institutions, such as the Thai Stock Exchange, Fund Management houses (eg Aberdeen and ING), TFEX, or banks, I would strongly disagree. All of these are generally well regulated in Thailand.

Actually the financial services industry in Thailand is tightly controlled and the expat "IFAs" are not exempt from regulation. They are required to be individually licensed on an annual basis and they are only allowed to work for licensed companies. Approval to set up a licensed investment advisory company has to be granted by the SEC before the company is incorporated to prevent companies with tainted pasts getting licenses. The SEC checks very carefully the business plans of applicants with close attention paid to proposed fee structures which must be transparent and also pays close attention to the backgrounds of proposed management - proper financial qualifications and experience are mandatory. Of course none of the shyster "IFAs" would dare to apply for corporate or individual licenses as most are totally unqualified (lapsed insurance sales licenses from the UK at best) and, even if they could get licensed, their very profitable schemes with several layers of fees and multitudes of hidden costs, would never stand the SEC's scrutiny. That is without going into the ones who have branched out into their own fund management activities without Thai fund management licences and without proper escrow arrangements to segregate what's left of clients' money in the event that the US$1 fund management company incorporated in the British Virgin Islands goes belly up.

The SEC is admittedly much less concerned about foreigners bilking other foreigners on Thai soil. However, they have made abundantly clear on more than one occasion that they know the "IFAs" are operating illegally in Thailand and they will investigate any complaints about them that are brought to their attention. The SEC has a lot of friendly, well educated young staff who speak excellent English. So do not hesitate to take your complaint to them, if you think you have been bilked by an "IFA".

Edited February 5, 2011 by Arkady

[Arkady]

Actually, you can also buy Miton's funds via a discount broker in the UK. Some such as the Special Situations or Strategic Portfolio have very low volatilities, which was useful thru 2008's financial crisis.

Thru Hargreaves Lansdown, for example, you can have the initial charge discounted to zero (from 5%), and minimum investment is GBP 1,000. HL will even rebate part of the annual charge by Miton, so you end up paying 0.15% less on the 1.75% you quoted.

Again for someone with net worth under GBP 325k inheritance threshold this is worth considering.

That is an interesting point, as onshore investments in the UK are liable for inheritance tax. However, most British expats are still regarded by HMRC as UK domiciled for inheritance tax purposes, even after decades of living overseas with exemption from UK income tax. In this case, your world wide assets will be liable to inheritance tax, regardless of whether they are onshore in the UK or not. The HMRC will not rule on domicile until you are dead but there are some clever schemes concocted by lawyers using trusts that force them to make ruling because the trust's tax status depends on whether you will be liable to inheritance tax. This are fairly expensive and only worthwhile for those with substantial assets. What is certain is that people who move abroad to retire after working all their lives in the UK will always be regarded as UK domiciled. You stand a much better chance if you have lived, worked and paid tax overseas continuously for over 16 years. Things like having PR or taking out the citizenship of your adoptive country are helpful.

In case you think you might be non-domiciled and want to avoid having assets over GBP 325,000 in the UK, it is helpful to keep your accounts offshore. You can use offshore online brokers like Internaxx or Boom. I don't know if either are agents for Miton's funds but it is possible, as they are both agents for a lot of funds. You can also use discretionary private banking accounts in Switzerland, Singapore or Hong Kong, although this is another breed of shark that has be carefully watched. Private bankers have enough clout to bargain fund entry fees down to as low as zero but often they prefer share the fee themselves rather than have it reduced to zero. Most of these funds are domiciled in some offshore jurisdiction like Ireland, Luxemburg or the Channel Islands, so it is harder for HMRC to classify them as UK assets. However, another layer of IHT protection is to open the offshore account in the name of a trust or a simple BVI company structure making your heirs beneficiaries or the trust or co-shareholders and signatories of the BVI. This may not stand scrutiny, if your heirs reside in the UK, but should be fine, if they don't.

[Arkady]

Unfortunately there are a lot more than two names of self styled IFAs in Thailand that you need to avoid.

I would ask to see their work permits and their annually renewed investment advisory licences issued by the Thai SEC. In fact you can check if they are registered on the SEC's website, if you can read Thai. Without both they are committing criminal offences if they are working in Thailand.

There are many funds you can invest in that take avoid capital gains tax by being domiciled in tax efficient locations like Luxemburg, Ireland, Caymans, BVI, Bermuda, Hong Kong, Singapore, Mauritius etc as well as the Channel Islands and Isle of Man which tend to specialise in UK-centric products, particularly insurance related products. Be aware that UK-centric products not based in mainland Britain are not subject to the Financial Services and Markets Act and can, among other things accept instructions from financial advisors not licensed by the UK FSA or, indeed, not licensed at all.

[Lite Beer]

A post leaving Thai Visa and the poster at risk of prosecution under Thailand's harsh defamation laws has been deleted.

[BlackJack]

my credentials are that i do it all myself and have not worked for 10 years

SPL should be checked out by everyone as it is a very special stock

as for charts and trends = they dont work and are manipulated

just look at gold the greatest manipulated investment every

I dont want to get into a slagging match

my point is diversify -read a bit

shift things around

fund managers say oh its going down but the charts and trends seem to suggest that it will buck the trend on the shoulder curve on planet venus when the moon is in the seventh house

Jack, I agree that 0.2% is not good enough. We should focus on rewarding the 0.2% and retraining the 99.8% and while I'm happy to take your word for it on SPL, personally, while I respect your views, I'd have to leave it because stockpicking is such a very specialist skill that a very few equity professionals have even with all the resources that they have available. I've certainly never had any pretensions in that regard, which is why I've never been in that area of business either for clients or with my own investments (which are entirely invested into the main strategies of our portfolio managers).

I also totally agree about technical analysis; it can be a good way to read sentiment but unless fundamentals support the directional trades then you can end up picking up nickels in front of bulldozers. Technicals are really more for traders than investors and the risks associated with trading are totally different from those associated with investing but whether Mercury is in Venus doesn't do anything for me either (although behavioural investment is an interesting area).

Our managers have been keen on gold as an asset since it was around $ 275 - they have sold off/sold down a couple of times including right now when they've taken a lot of the profit off the table @ $ 1100 - not because they don't see upside - they absolutely do - but gold is now behaving like a risk asset so you have to recognize the increased risk and vol. Also it had become an extreme size within the portfolios at over 10%. That's a very big call on a single asset - even if you use a range of methodologies to access it.

Silver is interesting - the question that will become clearer in coming months is whether silver merely represents a higher Beta play on gold price or whether it has additional intrinsic characteristics of its own - my own jury's out on that. Not sure about Robert K's credentials as a portfolio advisor - great authors don't always great investors make!

cheers, Jack, and good luck with SPL - I really hope it comes off for you. Just watch out for the downdraft on both the All Ords and the AUD.

Paul

ASX SPL completes phase 2 trials and takes off to 1.49 and looks set to become a billion dollar co soon

with low share volume this will have a lot up upside for shareholders and its not to late to get in

plenty of gravey left

also i cashed in AUD for 1.10 to the USD

so far so good

ALSO look at ASX LYC the first rare earths co outside of CHina to come online in Sept 2011

should be a rocket - down 6% today due to some nonsense in Greece

So time to load up

looking at 4 dollars years end

not advise so DYOR

[SolarOhm]

First question I would ask OP is what are you looking for a financial advisor for, and what are you trying to acheive?

I'm a firm believer in no-one can currently manage my own money as well as me, having a good knowledge and perhaps more importantly knowing what I want to acheive.

With that in mind, I haven't read Chiang Main Bruce's book, but 695 baht seems a small price to pay fro a good start, given some of the names who are quoted. The risk is it gets out of date, but it doesn't cost much.

After that, on individual investments, most people with a decent legit job would find the LTF's mentioned by Samran a very good new investment. I do these each year, among a wide range of onshore/ offshore stuff, and for me this is the first onshore investment I think of each year being in Thailand. Can invest up to THB 500,000 with of to 37%% tax back. Unbeatable for me, and I would think many others earning THB1mio up. Interesting I've yet to meet an IFA who recommends these as IFAs do not sell them and can't make money on them thru commissions. Probably a great first portf of call for most people spending a few year in Thailand prepared to accept some risk.

For many people on here, they probably don't even need an IFA for the amounts involved, and you could go direct to a fund manager starting with amounts as little as THB 5,000 or do indirectlt thru a bank who can choose various funds. Banks and security houses, fund managers etc, all offer a good range of products. eg ING, Aberdeen offer basic core products in most geographies and asset classes. Krung Thai, Tisco also have funds which leverage off overseas experts such as Allianz, DWS, etc

IFAs do have their place, but many of the marketing aspects on things like tax are irrelevant for many people with small amounts.

Ball park, unless you're worth THB 10mio up there's probably no need to speak to an IFA. There are plenty of good, reasonably priced products with low fees available in Thailand, with quality international names.

You can also start in your kids name too "by you" for THB 5,000 minimum, with in the majority of cases except very rich kids no real tax to worry about.

Thailand has made massive strides in this area onshore in the last 5-10 years since opening up to Foreign Investment Funds, with quality global brands.

There are many aspects of FInancial Advice. Do not get confused by persons hawking investments or insurance in the guise of Financial Advice - that is not financial advice.You also need to distinguish between Investment Advice and Financial Advice. An unbiased well qualified Professional Investment Adviser does not operate on commission - they should be charging fees for information. They should have their finger on the pulse of the markets, have access to wholesale markets pre-IPO opportunities and discounted share buying programs that give you an immediate benefit.

Financial advice all too often is left to accountants with little interest in suggesting strategies that significantly improve business profiability and wealth creation. You say you can manage your own money. Assuming you are either employed or run a business does that also entailed managing the tax dollars going down the drain?

If you are paying cash for Real Estate or Other Investments the dollars you pay are after tax (unless you do it via a Provident Fund - which has limits on how much you can invest). It does not make sense to pay cash of say $100k for a property or share portfolio if you have to throw away 42k beforehand in tax. So if you are truly capable of managing your money you should be able to save that 42% of your invvestment capital and turn it in to an immediate return. Do your current investments give you an immediate 42% profit day ONE?

Insurance agents have no idea of how to help you do the above - and if you are genuinely interested in being able to manage your own money perhaps it is worthwhile finding a REAL financial adviser to assist you.

[JeffreyMcCollum]

I never did really understand the whole finacial advisor thing

Have someone else decide what to do with my hard earned money and win or loose they still get paid.

And in the case of American Wall street a few years back. Loose big and still get bonuses ?

Hay can I be your advisor ? No chance I could ever loose as much as they did and I really could use a bonus

[pauljones]

I was introduced to the Barclays-Spencer Co in Bangkok.

Gave me the creeps.

Glossed over their performance and did their best to avoid discussing their fees.

AVOID.

[ExpatJ]

My advice would be to stick to the big global companies or read up yourself with the right books, mags, newspapers ...

Yep, like Merrill Lynch, or Bear Stearns...

And don't forget to only invest in products with a AAA rating from Moody's or S&P, because they're absolutely safe...

Its all relative- i would rate the Thailand based IFA organizations as ZZZ

[fredge45]

My advice would be to stick to the big global companies or read up yourself with the right books, mags, newspapers ...

Yep, like Merrill Lynch, or Bear Stearns...

I have been a Merrill Lynch customer for 25+ years, US citizen, living overseas the whole time.

Have rec'd notice from them that they are closing my account (by 30 June 2012 no less!) as supposedly they aren't allowed to do business with customers in Thailand any longer...

Any one else getting the same treatment? I'm fighting them for an extention, not that I would consider doing any further business with them but just to get enough time to get accounts opened with another financial firm.

[Spaniel]

My advice would be to stick to the big global companies or read up yourself with the right books, mags, newspapers ...

Yep, like Merrill Lynch, or Bear Stearns...

I have been a Merrill Lynch customer for 25+ years, US citizen, living overseas the whole time.

Have rec'd notice from them that they are closing my account (by 30 June 2012 no less!) as supposedly they aren't allowed to do business with customers in Thailand any longer...

Any one else getting the same treatment? I'm fighting them for an extention, not that I would consider doing any further business with them but just to get enough time to get accounts opened with another financial firm.

I opened my account with Fidelity in 1990 and have used my Thai address on the account and so far have not received a similar notice. You might consider moving your account to Fidelity.

[samran]

This thread is 2.5 years old!

[Misty]

My advice would be to stick to the big global companies or read up yourself with the right books, mags, newspapers ...

Yep, like Merrill Lynch, or Bear Stearns...

I have been a Merrill Lynch customer for 25+ years, US citizen, living overseas the whole time.

Have rec'd notice from them that they are closing my account (by 30 June 2012 no less!) as supposedly they aren't allowed to do business with customers in Thailand any longer...

Any one else getting the same treatment? I'm fighting them for an extention, not that I would consider doing any further business with them but just to get enough time to get accounts opened with another financial firm.

Hi fredge, just curious - what reason did ML give for not being allowed to do business with customers in Thailand?

Edited June 13, 2012 by Misty

[BigJohnnyBKK]

Hi fredge, just curious - what reason did ML give for not being allowed to do business with customers in Thailand?

I'm guessing the FATF money-laundering blacklist.

[mjj]

Interesting read....

Although I didn't understand 95% of it!

[fredge45]

My advice would be to stick to the big global companies or read up yourself with the right books, mags, newspapers ...

Yep, like Merrill Lynch, or Bear Stearns...

I have been a Merrill Lynch customer for 25+ years, US citizen, living overseas the whole time.

Have rec'd notice from them that they are closing my account (by 30 June 2012 no less!) as supposedly they aren't allowed to do business with customers in Thailand any longer...

Any one else getting the same treatment? I'm fighting them for an extention, not that I would consider doing any further business with them but just to get enough time to get accounts opened with another financial firm.

Hi fredge, just curious - what reason did ML give for not being allowed to do business with customers in Thailand?

From their lettter telling me to go - "During this review, it came to our attention that you have resided in Thailand for many years. The financial services industry is highly regulated and Merrill Lynch is subject to the rules and regulations of the regulatory authorities in various jurisdictions where it does business. Merrill Lynch reviewed its Wealth Management business across the globe to identify those markets where its structure and presence would enable it to best serve its clients in respect of the local rules and regulations of each country. As a result, we have been informed by our Compliance Department that our financial advisors are no longer able to conduct business with clients in Thailand (along with many other international jurisdictions)."

When I asked for specifics they have refused to answer. Big JohnnyBKK's thought of the FATF money-laundering blacklist is something I hadn't considered but that's a real possibility.

Giving about 30 days to open new accounts, change over everything from auto deposits/payments etc is being a real impossibility.

Of course, they don't give a dam_n. To add insult to injury Merrill Lynch has hit me with "annual account fees" with less than 30 days left on the account. Got those dropped but still no extenion...

Great outfit for doing business!

[VeryHansumMan]

Try the following guy, he is sensational:

Bernard L. Madoff

C/O Federal Correction Complex

Butler North Carolina USA