Where to turn for advice on money and financial planning? HOWARD CLARK-BURTON, the CEO of BMP Wealth, answers our readers’ questions on how to choose a financial advisor in Hong Kong.
What’s the difference between a fiduciary and a financial advisor in Hong Kong?
There is a very important difference. An independent financial advisor has the fiduciary duty to act in their clients’ best interest, by recommending a solution from across the market with unbiased advice. They are legally obliged to act in your best interest.
A bank or insurance company financial advisor, in practice, may be limited to the solutions offered by their employer and have a lower level of duty to their clients of “suitability” – only considering your general profile.
What should I consider with regard to the different investment philosophies and services on offer?
- Ensure the financial advisor’s investment philosophy aligns with your risk tolerance and objectives – whether long-term strategic planning or active trading.
- How personalised is their service? Smaller companies usually offer more tailored services inclusive of regular annual reviews. Larger brands usually focus your relationship on the brand more than an individual advisor, which may mean experiencing a high turnover of financial advisors.
- Ask how comprehensive their service is (tax, retirement, estate planning and so on) or whether they’re advising on a specific need or product solution. Do they provide comprehensive written financial plans covering all aspects of your requirements that can be modified as your circumstances change?
What differences in fee structures are there in the financial services industry in HK? Tell us about the pros and cons of these.
It’s important to distinguish between those remunerated by commission or fees. Most companies will offer a free initial consultation, where you can clarify their fees. In general:
- Commission-only advisors may have conflicts of interest to sell a product that pays the most commission. This usually means higher product charges.
- Fee-only advisors usually charge flat or hourly fees for work done and an annual percentage on assets under management for ongoing services.
- Fee-based advisors are a hybrid of the above two options.
In Hong Kong, you can expect to pay around 1-2 percent of your investment for upfront costs (or an equivalent flat fee) and 0.5-1 percent per annum for ongoing services.
All fees should be clearly disclosed to you in their written advice reports and explained.
Is there particular expat-specific expertise I should look out for in their offerings?
Look out for financial advisors who have experience in dealing with the following:
- Low overall-cost global investment solutions that demonstrate a good track record and align with your risk profile. Avoid those selling ‘fashionable’ or high return investments.
- Cross-border (your home country and Hong Kong) expertise, particularly regarding various jurisdictional tax laws, repatriation, and pensions.
- Knowledge around managing currency risk in terms of your “base” currency.
And, as an extension to that: are some financial advisors in Hong Kong better equipped to help expats from certain countries?
More often than not, advisors from a particular country are better equipped to deal with clients from the same country. Tribal instincts. However, beyond this, make sure they can demonstrate expertise and resources that consider your country’s onshore products, like Australia’s superannuation or various pensions in the UK, and, crucially, repatriation tax laws.
I’ll possibly be relocating in the not-too-distant future. What factors should I look out for in terms of a firm’s flexibility?
It’s always easier to remain with the same company or company’s network when moving to another country, especially when you repatriate. This allows for “joined up advice” that provides a seamless experience when transferring your file. It also ensures that the advice you receive in Hong Kong that remains in place once you’ve repatriated can be looked after too.
Further to this, look for companies that can provide an ongoing service via online portals for your portfolio monitoring, and can be easily available for regular communication via the likes of Zoom and email. This is especially important if you have international needs.
When I’m checking the credentials and expertise of a firm operating in HK, what kinds of licences and regulations should it hold?
A financial advisor based in Hong Kong should be licensed by the Securities and Futures Commission (SFC) for advising on securities (Type 4) and asset management (Type 9). Where their advice includes insurance, they should also hold a relevant license with the Insurance Authority (IA). Many full-service financial advisors will also be registered by the Mandatory Provident Fund Scheme Authority (MPFSA), which enables them to guide you on your MPF.
You can go to the respective regulator’s website to check an advisor’s licence records and see if they have any historical reprimands or any restrictions.
Many individual financial advisors possess professional certifications like the Chartered Financial Planner or Certified Financial Planner. At the very least, you should ask them about their experience and expertise in areas relevant to your needs, whether it’s expat financial planning, retirement planning or cash-flow planning.
Where should I look when it comes to finding recommendations of good financial advisors?
These days, people usually research online before meeting an advisor face to face. Google, AI research and social media platforms like LinkedIn can provide great starting points. Verifying a financial advisor is powerful. See what a financial advisor’s clients think by looking at Google reviews, Trustpilot reviews and whether the financial advisor publishes client testimonials or videos on their website.
Also, there are some red flags to avoid:
- Advisors who are unlicensed or lack verifiable credentials.
- High-pressure tactics to invest in complex products you don’t understand.
- Lack of transparency about fees or conflicts of interest.
- Promises of guaranteed returns or overly aggressive strategies.
BMP is an independent financial advisor in Hong Kong, with fiduciary client duties. BMP is licensed by the SFC, IA and MPFSA and offers fee-based advice specialising in British, Australian and European expatriate services.
info@bmpwealth.com | 2905 9041 | bmpwealth.com
This article on how to choose a financial advisor in Hong Kong first appeared in Expat Living Autumn 2025. You can purchase the latest issue or subscribe so you never miss a copy!
