UAE: Less than a third of investors assume financial advisers are reliable
Source: Middle East Insurance Review | May 2018
While over half of UAE investors consult a financial adviser, less than a third consider them trustworthy, according to a new study on trust in the country’s financial services sector carried out by the CFA Institute.
Fifty-four percent of UAE investors polled by the global association of investment professionals said they employ the services of an adviser, yet only 32% assume they are reliable. This compares to 29% of UAE investors who said trust must be proven at least once before they will give their adviser the benefit of the doubt.
“Trust is essential in the world of finance, where well-functioning markets are necessary to create value, and in investment services, where experts work to safeguard and grow the financial wealth of their clients,” the CFA Institute said in its report, ‘The Next Generation of Trust: A Global Survey on the State of Investor Trust’, which polled 3,000 retail investors.
The study also showed that when selecting an adviser, global investors place more emphasis on personal trustworthiness and ethical conduct, while investors in the UAE are more concerned with returns.
“Although the primary investment goals for global investors are retirement-related, investors in the UAE have different reasons for investing. The number one investment goal for investors in the UAE is saving to start a business, followed by saving for a large purchase,” said the report.
The study found that investors in the UAE are confident, with 47% claiming they are very confident in their investment decision-making, compared with just 33% of investors globally. However, many still prefer to invest with the help of a financial adviser. M