Avoiding mistakes when choosing financial advisers

Choosing financial advisers and fund managers is not an easy task. When it is done perfectly, it has some advantages.

However, the consequences are usually severe if not appropriately handled, as it can lead to huge loss.

Experts says that individuals or corporate organisations should consider the experience of financial advisers or fund managers, their track records and ensuring that they are registered with the Securities and Exchange Commission.

Another major factor that investors should consider, they say is the fees of the financial advisers and whether they are involved in market infractions.

For instance, the Registrar, Institute of Capital Market Registrars, Dr. David Ogogo, suggests that those seeking financial advisers should ensure that the they choose those who are not involved in any market infractions.

According to him, “The issues to be considered include, whether such financial advisers are registered with the Securities and Exchange Commission, who the directors are, whether the interest being promised are realistic and whether the company is being investigated for market infractions by the regulatory authorities.”

The Managing Director, Vetiva Capital Management limited, Mr. Chuka Eseka, stressed the need for people to consider the track record of the company and the areas they want to invest in.
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