Capital Club Dubai, the region's premier private business club and a member of the ENSHAA group of companies hosted a very topical debate on Monday 7th March; Financial advice is good for your health.For the motion was Sebastian Nokes, a partner of UK and UAE management consultancy Aldersgate Partners, and author of ‘Finance, Plain and Simple’. Against the motion was Paul Forsyth, Chief Executive of Apache Advisors, a Dubai based consultancy and corporate advisory business specializing in finance and investment.
Nokes’ opinion originated from a bad experience; he was mis-sold a pension and took his financial illiteracy into his own hands. He took an MSc in finance and went on to work in a leading investment bank. He was shocked to discover the dramatic advantage that the financially literate have to create a wealthy and stable lifestyle.Forsyth holds 30 years experience in the financial industry, having previously owned and managed investment management and financial advisory businesses.A qualified Chartered accountant, he has regularly chaired and presented papers at investment conferences and has also appeared frequently on CNBC, BBC World, as well as local RV and radio.
Moderating the debate was Dawn Metcalfe, Managing Director of Performance Development Services. Dawn works with organizations to improve individual and team effectiveness, and has regular columns in Yahoo Maktoob.With an initial audience vote of 71% for and 29% against the motion, Forsyth opened his case with surprise; ‘I truly do have my work cut out here, I am shocked at the results’, he said, leading on to say,‘education is the critical cornerstone of how you run your life and business’. Nokes responded that, ‘our existence financially depends on having good advice and broadly speaking education is part of advice’.
Forsyth disagreed; ‘There is a big distinction between education and advice. Financial advisors are seen as commission hungry and I want to see good fee payment and good advice to go hand in hand’.Financial advice does not have to come from a financial planner argued Nokes. ‘Some of the best advice does not cost anything. Financial advice is available in books, by copying internet trends and also by educating yourself. Take your own advice and reflect and learn’, he said.
In the closing argument, Forsyth returned to his point on financial advisors, ‘Most people’s experiences of financial advice are not good ones’, and he encouraged ‘intelligent people to take more responsibility for their actions. Educating yourself is key’.In his summary Nokes, referring back to his own experience which he earlier described as, ‘an emotional one; a bad experience and a loss’, urged the audience that, ‘getting the right advice is essential. The idea that we can live without financial advice is a risky one, and advice is better than none, even if we take our own advice.’
As Metcalfe thanked the audience for their ‘lively participation’ and requested their closing votes it quickly became clear that the motion and surrounding discussions had given them much food for thought; Forsyth won the debate with 60% agreeing that financial advice was not good for your health, leaving Nokes with a decreased following of 40%
