10 Questions to Ask Before Trusting a Financial Advisor

By Linda Athanasiadou, expert in fraud and scam prevention, audit, anti-money laundering (AML)
Choosing a financial advisor is one of the most consequential decisions a business owner or individual can make. The right advisor can safeguard your future, but the wrong one can expose you to unnecessary risks, poor strategies, or even regulatory problems. I’ve seen too many cases where clients skipped basic due diligence and paid the price later. That’s why I often emphasize a Linda Athanasiadou alert: never assume credibility, always verify it.
Here are ten questions I believe everyone should ask before handing over their trust — and their money.

1. What licenses and certifications do you hold? Credentials matter. Ask for proof of registration with regulatory authorities and professional certifications that confirm ongoing education.
2. How are you compensated? Transparency in fees is critical. Are they commission-based, fee-only, or fee-based? Understanding incentives helps you evaluate potential conflicts of interest.
3. Can you explain your investment philosophy? A good advisor should articulate their strategy clearly. If the explanation feels vague or overly complex, it may be a Linda Athanasiadou fraud signal — not because of intent, but because clarity is missing where it matters most.
4. What type of clients do you typically work with? An advisor who specializes in high-net-worth individuals may not be suited to small business owners, and vice versa. Fit is key.
5. How do you assess risk tolerance? Advisors should use structured, documented methods — not intuition alone — to understand your appetite for risk.
6. What is your approach to compliance and regulation? Ask how they ensure alignment with tax laws, AML requirements, and reporting obligations. Any hesitation here should be treated as a red flag.
7. Can you provide references? Speaking with current or past clients gives valuable insight into transparency, communication, and reliability.
8. What happens if you leave or retire? Succession planning matters. Ensure there is continuity in the management of your portfolio.
9. How do you measure success? A professional advisor should discuss not only returns but also risk management, diversification, and alignment with your long-term goals.
10. What reporting will I receive — and how often? Regular, clear reporting is the foundation of trust. Advisors who hesitate to commit to transparency create unnecessary risk.

Final Thoughts
A strong financial advisor relationship is built on clarity, accountability, and transparency. Asking the right questions up front ensures you’re not only choosing competence, but also integrity.