If you’re living in France, thinking about moving to France or you own a property in France, it’s important to review your finances. As part of this process, you may need the help of a financial advisor. As an ex-pat or non-French national, the French tax and financial sector can seem daunting and although there are many financial advisors and companies offering advice to people living in France, how do you pick the right financial advisor for you?
We asked financial advisor Helen Booth at deVere France to explain why it’s important to know the facts when choosing the right financial advisor in France, and how they can really help you to live a more comfortable life in France.
Why do I need a financial advisor?
You need to ensure your finances are organised in a way that is tax efficient and tax compliant, but you should also review your estate planning, investment strategies and pensions. This will not only ensure that your money works hard for you allowing you to enjoy your life in France, but it will also bring you peace of mind that your future is financially secure and that any loved ones will be provided for in the way you want after you’ve gone.
Understanding French tax law and finance regulations
At the outset, it’s important to bear in mind that the French tax regime and financial services are very different to the those in the UK. This can affect your income tax liability as well as any potential Capital Gains Tax or Inheritance Tax liability. France also has different opportunities for tax efficient investments and savings, and if you’re retired or nearing retirement, you may need to navigate the most efficient way to draw an English pension in France. And all of this is important when it comes to choosing your financial advisor.
Check your financial advisor is properly qualified and regulated
Since Brexit, UK qualified financial advisors who live in and are regulated in the UK, are not authorised to provide you with ongoing advice about your French finances. This means you will need to work with a financial advisor who is regulated and qualified under the French regime.
The generic term for financial advisor in France is called a Conseil en Gestion de Patrimoine.
A CIF will normally have to be affiliated to a professional body such as one of the four AMF-approved associations: La Compagnie CIF, CNCGP, CNCEF Patrimoine, or ANACOFI CIF. For example, deVere are registered with ANACOFI-CIF (National Association of Financial Advisors), and they are also registered with the Organisation for the Registration of Assurance Intermediaries (ORIAS).
Finally, ideally your financial advisor should also be EFA Certificated, or European Financial Advisor Certificated. EFA is one of the quality standards in the financial advisory industry. Only advisors currently holding the Dip PFS (Diploma in Financial Planning) designation can also have the EFA designation.
You can check the register of financial advisors in France (which you’ll find at: www.orias.fr) to see whether someone is registered, although bear in mind, this is just a register, not a regulator. You can also check their website which should have full details of their qualifications and status.
Insurance
A regulated financial advisor has to have insurance as part of their compliance. Nonetheless, you should check that they are insured and check the scope of their insurance. Professional liability insurance provides you with protection in the event that your advisors make errors, omissions, or are negligent.
Independence and expertise
Your French bank may be willing to offer you financial advice, however, they will be recommending services and financial products provided by them and they are not independent. An independent financial advisor will look at the financial market as a whole and therefore can recommend the best products or solutions for your circumstances rather than the best ones that a bank has on offer. This can make a big difference.
Next, check the size of your financial advisor’s team. A larger team may mean a larger pool of expertise and experience such as specialist knowledge in tax, pensions and succession planning. A larger firm may also have greater purchasing power when it comes to a financial product they are recommending for you and a higher level of back-end support. All of this makes a difference not just to your finances but to the level of customer service you receive.
What are they like and how do they operate?
Financial services and advice should be very personal. Your circumstances are unique, and you will need financial advice and solutions that are geared to you and what you want and need. So how does this help you choose the right financial advisor?
Start by making sure they speak your language – literally. You want an advisor who can speak English.
Check their website for anything that indicates that they make customer service a priority. Have they won any awards? How long have they been around? Are there any testimonials either on their website or elsewhere online? What kind of person are they and you can you see yourself building a good relationship with them and working with them long term? If you need to call them, will you be dealing with them personally, or will you find yourself endlessly on hold or speaking to someone you’ve never met and doesn’t know you?
Finally, ask what their process is. This is absolutely critical. You want someone who takes time to get to know you, and to understand your short- and long-term financial goals and needs, as well as your risk profile, so that they can develop a financial strategy for you. Make sure they offer regular reviews. Life has a habit of throwing curve balls at you, and it is important that you regularly review your financial plans, needs and goals to ensure they are still on track or so that you can adjust your finances and financial planning as necessary.
Your finances are such a significant part of your life, it is worth taking the time to ensure you entrust your future with the right financial advisor for you.
Contact Helen Booth at deVere France for a free, no-obligation consultation at helen.booth@devere-france.fr
deVere is one of the world’s leading independent financial advisories; deVere France provides trusted, independent financial advice to expatriates and international investors based in France: deVere-france.fr
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
