Wild Speculation
When investing many people seek expert advice from wealth advisory firms and independent financial advisors (IFAs) to help them find best deals and to minimise the risk associated with their lack of expert knowledge.
In most mature markets, both globally and regionally, IFAs are strictly policed by financial service authorities, who not only hunt down and prosecute firms that breach regulations, but also provide financial insurance for investors if an investment fails due to bad advice. But this is not the case in Thailand.
Locally, the selling of offshore investment products to non-Thais is practically unregulated, local operators say. Not only does this create a free-for-all that attracts unscrupulous IFAs and investment services, but it also weakens Thailand's position as a reputable regional investment base.
Poor Advice
The recent plight of a Bangkok-based British investor highlights the risks involved with doing business with some local IFAs. He lost about GBP 15,000 in equity when an offshore fund he invested in went south.
