The role of the advisor
A consultant makes his professional experience and expertise available to the customer. This allows the client to plan, act and protect as if they had the advisor's expertise.
Good advice requires:
OBJECTIVE ANALYSIS
Analysis of the client's circumstances, financial situation, risk tolerance, investment horizon, investment goals and needs (including age, retirement needs, tax domicile)
STRATEGY PLANNING
The result of the objective analysis, risk capacity and risk appetite, provides the basis for strategic planning.
STRATEGIC IMPLEMENTATION
The strategic planning provides the framework for the portfolio composition and thus the investment.
Impartiality and independence
The impartiality and independence of the advisor is necessary for the recommendation of an investment or service.
Impartiality and Independence
It is often the last point, impartiality and independence, that strains the counseling relationship. There is a great deal of economic interest in recommending the purchase of certain products or services, and the financial sector is not exempt from this dynamic. The consequences can be serious. They range from taking risks that are incompatible with the needs of the investor to real catastrophes with significant capital losses.
Who pays the bill?
This applies to all areas, which is why a financial advisor, like an accountant, an architect, a doctor or a lawyer, should be paid directly by their client. Imagine what would happen if a doctor were no longer paid by his patient or their insurance company to prescribe drugs, but by the pharmaceutical companies: they would no longer act solely in the patient's interest.
So when we approach an adviser, we must first check whether their interests are aligned with our own or those of the bank and providers of products and services such as certificates or investment funds.
One cannot serve two masters.
Good advice has its price.
As absurd as it may sound, free advice is a problem in this area. Unless we are dealing with non-profit organizations. If we don't pay directly for the consultancy, it can only mean one thing: a third party is paying the consultant without our knowledge, creating an obvious conflict of interest.
Geneve Invest & Independence
At Geneve Invest (Europe) we pride ourselves on our independence. It allows us to put our skills and experience fully and exclusively at the service of our customers, without being subject to any commercial pressure to promote third-party products. Our analysts and advisors are therefore free to analyze the client's objectives and plan and implement a personalized investment strategy, continuously searching for the best investment opportunities on the market.
Independent Financial Intermediary
Geneve Invest (Europe) is a member of the Association Luxembourgeoise des Professionnels du Patrimoine (ALPP) , a prestigious umbrella organization of the main independent financial intermediaries in Luxembourg, which requires compliance with a strict code of ethics to protect clients' interests.
