Here's what Singapore expats should know when planning their financial futures

The British government recently warned expats to be 'extremely vigilant' against unscrupulous financial advisers. The issue of barely qualified sales people pushing high fee retirement products at expats is a big problem undermining confidence in the industry.

Ironically reforms to the UK market – greater regulations, a virtual banning of commission, and heightened transparency – have pushed many of the products now banned there into expat havens including Singapore.

The reality is that expats themselves can be particularly vulnerable as they settle into new and unfamiliar environments. All too often employers offer little in the way of support.

Products – such as offshore wraps – are promoted as tax-efficient but too often they charge high fees and have long lock-in periods that only benefit the salesman and severely reduce your potential retirement nest egg.

Singapore ranks in the top three preferred countries for expatriates looking for a well-balanced, high quality lifestyle, according to the latest HSBC Expat Explorer Survey released recently, but even in Singapore we're not immune.

The recent FAIR recommendations in Singapore were a shot across the bows of unscrupulous advisors. The expat financial advice industry can and should be doing more to drive rigorous standards beyond the regulatory minimum.

Some of the products being sold in expat destinations, while adhering to the letter of the law, can be expensive, opaque, and are not up to the job.

In the meantime there are some common sense measures and due diligence that any expat should carry out.

Always insist a prospective adviser provide testimonials, solid examples of past work, and evidence of having been trained to a high standard.

The UK is a world leader in terms of the qualifications it requires financial advisers to have. So, if you're speaking to a British adviser abroad, you can gauge their industry education based on the qualifications they have from the UK.

Both the company and the individual should be regulated and licensed by the Monetary Authority of Singapore (MAS). If they are not, they are working illegally.

For the expat planning a return to Britain, seeking advice from a global company with a UK-regulated and authorised parent is also advisable.

Firms which cold-call should set off alarm bells. Beware any adviser who cold-calls you at your home or office.

Transparency of fees, commission, and charges are crucial. The basis of your adviser's remuneration for their services, be it commission, fees, or a combination of both, should be clearly explained in writing.

And beware long-term pension products with expensive lock-ins. You would be unlikely to be offered these products any more in the UK, so why risk it and invest in them overseas?

Finally, your financial adviser should not be selling you a check list of financial products. They should be providing a holistic financial strategy which helps you prepare for major life events and responsibilities – like provision and planning for school and university fees, returning to the UK, tax advice, and will and estate planning.

For expats newly arriving in Singapore, the important thing is to be selective, do your homework, and get referrals.

For the expat financial advice industry, the message is simple. We need to be vigilant in raising standards and maintaining trust in our industry.

Expats should be safe in the knowledge that the financial adviser they are dealing with in Singapore is looking after their best interests every bit as well as is now required in the UK and not just chasing a quick buck.