It was reported earlier this year that former England football manager Sven-Göran Eriksson was £3.8 million in debt when he died. He blamed his plight on his financial adviser, whom he first met while abroad, says Mark Maplesden, Novia Global’s principal representative officer in Dubai.
The news that such a successful and seemingly sophisticated figure ended his days owing a huge sum of money sparked widespread astonishment. Many people were amazed that he could be duped to such an extent.
It’s extremely rare, of course, for someone to be fleeced to the tune of millions of pounds. Yet this was by no means the first story of an investor being let down – or worse – in the sphere of offshore financial advice.
In my opinion, the fundamental lesson here can be summed up quite simply. Arguably the worst mistake anyone who invests overseas can make is to believe the process has to be spectacularly complicated.
It’s this basic misconception that can lead people into a world of complex structures, disproportionate levels of commission, illiquid assets, elevated risk and highly uncertain consequences. Above all, it can steer them into the clutches of “experts” who in no way have their best interests at heart.
Agonisingly for the likes of Sven, the reality – at least today – is that offshore investing doesn’t have to be complicated at all. It can actually be perfectly straightforward, entirely transparent and firmly rooted in confidence and trust.
This is because international investment platforms have redefined what’s possible. Like their domestic counterparts, they have brought seamlessness and clarity to the act of seeking to preserve and grow wealth.
As more and more expats in particular are discovering, platforms can offer both efficiency and value. They can enable access to hundreds or even thousands of funds, as well as multiple MPS providers, with no unwelcome surprises such as hidden costs and incomprehensible documentation.
Crucially, underpinning this combination of facility and security is a requirement – and, in my experience, an absolute determination – to do things right. In turn, two dynamics drive the collective desire for optimum outcomes.
The first is regulation. By any standard, the best international platforms are very highly regulated. For example, for the purposes of doing business in the UAE, Novia Global is licensed by both the UK’s Financial Conduct Authority and the Dubai Financial Services Authority.
Significantly, the latter is acknowledged as having a progressive approach to digital innovation. This reflects the UAE’s “can do” attitude towards financial technology. Such an outlook is good for platforms – and, even more importantly, good for their stakeholders as well.
The second dynamic may be less obvious. It’s also more personal. In discussing it, I like to think I speak for anyone in financial services who is suitably qualified, licensed and has an “on the ground” presence – whether in the UAE or elsewhere.
Ultimately, every one of us is a member of a vibrant and closely knit expat community. We fully understand the attractions of living and working in our chosen country of residence, which is why we want to help others make the most of the opportunities available to them.
If the media reports are accurate, Sven’s nemesis was the sort of “adviser” – I use the term loosely – who sells something questionable and then disappears. It seems reasonable to suggest that a regulated and reputable platform couldn’t be mis-sold, less still that it might be capable of vanishing.
Interestingly, some clients occasionally wonder if one or two platform-based operations could be carried out more quickly. This hints at another error that can cause serious problems for overseas investors, which is to confuse speed with effectiveness.
Although platforms can accomplish most feats pretty rapidly, slight delays aren’t unknown. Yet they usually indicate every necessary precaution is being taken – which is at it should be whenever someone is striving to build a secure financial future.
It’s tempting to wonder how swiftly Sven’s doomed deals were finalised. Maybe they were sealed with no more than a handshake. Maybe what amounted to the finer points were scribbled on the back of an envelope.
It’s obviously not for me to speculate. But what I can say is that an appropriately regulated platform should have checks and balances, due diligence and thorough procedures at its heart.
As far as I can discern, the sphere of international platforms wasn’t really established when Sven took the financial decisions that he would later claim cost him a fortune. Thankfully, as the sector’s appeal gains ever more recognition, today’s overseas investors have every chance of avoiding a similar fate.
By Mark Maplesden, Novia Global’s Principal Representative Officer in Dubai
