The Problem with Low-Regulation Markets
Low-regulation markets are attractive to many expats seeking tax efficiency or increased privacy. However, the same characteristics that make these markets appealing can also create an environment where unscrupulous financial advisers thrive. These advisers often prioritise high-commission products, promising high returns while ignoring or downplaying the associated risks and costs. The result is often inflated fees, poor product choices, and a serious disconnect between the investor's long-term goals and their financial plan.
Unlike well-regulated jurisdictions, which impose stringent requirements for adviser qualifications, transparency, and fee disclosure, low-regulation markets often have a lack of oversight. This means that clients are often left to fend for themselves, unable to differentiate between genuine financial planners and salespeople peddling expensive, ill-suited products. It's very much like the Wild West!