Global Eye / PIC / DeVere / Acuma et al - Zurich Vista UAE
 

Every so often we see posts referring to the above organisations but no real detailed information on what they are selling to us and how to avoid getting trapped by them. I would like to fill the void and warn others of the experience. Every EK/FZ pilot I know have been contacted by these guys at some stage so I’m sure a lot of folk are sadly already trapped in the scheme (and maybe unaware of its pitfalls).


The fact is these companies along with a host of other one man band salesmen are pushing ONE product and one product only: - Zurich Vista (combined insurance and investment policy). Zurich sounds like a trusted household name so why they trash their brand by pushing this product and using local non-FA qualified (in any country) sale people is beyond me. Anyway, heres how this product works in reality;

———-
Supposedly high return off shore saving plan ideal for the expat pilot. Plans start from 5 years but they will push you into 20 or 25 year plans.

Premium contributions start from 300 USD pm but they will push you to sign up for 2000 USD pm minimum achieve your long term financial goals and receive the maximum bonus on offer.

Your first 18 months of contributions (Initial Contribution Period - ICP) are locked in until close to product maturity after typically 20 years. You will be awarded bonuses against these contributions but this part of your investment is subject to 4% account fees pA for the entire policy term. If you took this product for 25 years, 4 % x 25 years is 100% of all your payments GONE in fees.


So effectively after the ICP your account balance is still ZERO but this is initially masked by the bonuses you have received (which are then eroded over time by the high account fees). Where have all your payments gone? Well apparently equality between the three parties involved… Zurich, the UAE broker and your salesman. These commissions are paid upfront and you are unlikely too see much of your conman for another 12 months (was that one consultation really worth paying him over 12,000 USD?)

12 months in, out of the blue you hear from your "IFA". Great news! Zurich are offering a one time promotion! If you can increase your monthly contributions we can add up to 45% value to your account! If you agree, they have just reset your 18 month ICP again. Again, contributions during this new 18 month period go to the 3 parties and at the end of this 2.5 year period, your redemption charge is still 100% (they keep ALL your money if you close the account, not one dollar back). Everything masked by the bonus they give.

By this stage you might start to dig a little as your balance grows. Why is nobody else talking about this amazing investment opportunity? Finally the penny drops that you are deep in a trap! You consider all your options… cash in and loose all your “investment”, continue as normal or reduce your payments to the minimum amount (300 USD) and ride it out. Unfortunately, they are well ahead of you again. All charges on your account are based on the maximum monthly premium you have ever made (even if this was just for one month) and will be charged for the entire term of your policy, regardless of what you pay in each month. They are charging you on a virtual fund which will eventually also wipe you out.

You can over the term of the policy cash in the funds you have paid in, but there is a huge redemption charge. At year 10 of a 20 year policy, they will keep 54% of your savings!! For someone contributing 2500 USD a month, thats a 162,000 USD fee PLUS all the charges they made over the preceding years.

I have not even touched on the very complex and high charges they make on your account after the ICP period. But in reality after all these deductions, I cannot see how your account can grow more than about 1.2% pA, which, funnily enough, is the figure you need to achieve to get back all of your investment payments you have made over 20 years! If the NET growth after fees is less, you're out of pocket. Why go through all the stress for that? The main point is this will be sold to you as a flexible savings plan, which it certainly is not!

————
I hope this helps any new joiner avoid just one of the many financial pitfalls out here in Dubai. If you get a phone call hang up and block the number! LinkedIN request from anyone in Finance or Investment in the UAE - block them!! a business card - burn it!!! Invest back home if anywhere and not in a seemingly totally unregulated market like the UAE.

Got burned by them. Pulled the ripcord after five years due to issues every month. Was lucky to get 70% of my total contributions out. Avoid! Avoid! Avoid!

It should be a sticky 👍🏻

The simple answer is:

Don't invest in the Middle East. The main reason not to invest in the Middle East, is because it's in the Middle East.

Same your investments for your home country protected by your own financial regulators.

Yorkshire_Pudding,

Thanks for the post.

I'm one of the victims of Zurich as well; my broker seems to Nexus. Had him come to my place and collect the cheques every 6 months; 2000USD per month. After about 10 years the total in the fund is still less than what I put in.

A few months ago I went down to 500USD; should have gone to 300USD straight. Guess what... since that moment the gentleman was all of a sudden not interested to come to my place anymore; a courier was sent to pick up the cheques; tell enough right?

I would like to pull out, but to be honest I'm not sure what would be the best way.

Feel free to PM me if somebody is in a similar case or has more info. Also looking in maybe moving the plan abroad (to ZRH?), however once again not sure what the cost etc... would be involved.

STAY AWAY FROM THEM; put your money under your mattrass and you'll be better off!

Same happened to me. Then I was told that my cheques bounced (they didn't). I had to do all the run around with the banks to proof that they didn't. Then my account went into constant lock down due to my contributions supposedly being a dollar or two short each month. They never were, but once again, I was forced to run around and provide proof. No apology ever and as stated the Acuma gentleman became very uninterested once I reduced the monthly contributions. Eventually I baled. Mr. JN is now very eager to get me to rejoin and recover my losses. Unbelievable.

Mate of mine who resigned this time last year after 8 years had been involved with this mob.

Same as the above. Complete BS and left with less money than he had started/contributed with.

Be careful.

I signed up for this but stopped paying after the first month, based on advice from a friend back in the UK who is a Chartered Financial Planner. He told me to drop it faster than a hot potato as he felt it is 'ridiculously expensive and restrictive' :ok:

You should be able to smell a rat a mile away. When someone randomly gives you a phone call and it's a guy on the phone and he is sweet talking you like he is your best friend for 10 minutes before delivering the punch line, you ought to know he is after one thing. And that's your money. Don't get greedy. You should get a decent payout from the company when you leave. What more do you want? Put whatever you can save (if you can save) into your account back home every month and be happy with that.

Partly right xhamster. The company payout may well not be very "decent" and certainly won't be enough to finance a comfortable retirement on its own. You have to do more than just pay the minimum contributions into that or you will be sleepwalking into years of misery when you do leave.

People must take responsibility for their own money and not expect sweet talking financial con-men (sorry, advisors) to do it for them. The best piece of financial advice I ever received was never to invest in something I didn't fully understand. People won't look after your money for nothing so where is their cut coming from? How is the money invested? What are the ongoing charges? How do I get my money out? All basic stuff but it does appear some people are quite happy to sign up for a 20 year(!) plan without really understanding it.

Not much to do with the Middle East other than these schemes target expats and there are many in the desert. But they go after them all over the world.

Zurich International and Friends Provident… Should You Invest With Them?

That's an article from 2011. And these scams were around for a long time before that.

And this recent one. Unfortunately, education is sometime expensive.

Zurich Vista Policy Holder Asks If He Should Sell It All

The best thing you can do is educate yourself. Do yourselves a favour, read the book, Money Maste the Game by Tony Robbins. It will open a few eyes... trust me.

whenever they called me I made an appointment with them on a friday 7AM, because I know its their day off, when they said its too early I just told them that I meet a competitor at 9AM, I gave them a wrong address, usually in jebel ali so they have to drive for a while, with one guy I actually booked a 2nd appointment, that was too funny because he was a bit upset.

Gore Tex, brilliant!
Similar scam from Hansard International, years ago. Peddled by a slime bag named David L. I got in and out within a year.

I'm glad I didn't invest as the advice I was getting during a consultation from their child adviser (seriously, I don't think he'd started shaving yet) was clear bollocks. What was most disappointing is that a neighbour had given him my contact details and "recommendation" without asking me first. The rep pestered me for others' details, just like most gardeners, water filter fitters and such do here, who all get quite angry when you refuse. It is appalling that so many of our colleagues feel free to hand out our phone numbers to scammers.

Zurich-Nexus and other mobsters!!!!!
 

Hi all,
This was my first "investment" in the UAE and was lucky to get my contributions value out after 10 years, that's 0% growth, actually -ve growth if you consider a nominal ROI or if I had invested back in my home country.

The only learning from this was to be very careful with what you do with your money, " A fool and his money is quickly parted" was very true in my case. If there's a higher power, universe , karma whatever watching all this, I want that flashy smiling SOB "advisor" to feel some of the pain we duped "customers" felt.

Luckily, I'm in my home country for the past 12 years and I'm much better off and the govt. takes a keen eye on how companies manage funds and things like commissions, deductions , etc., are well regulated here.

All the best folks and stay away from anything that promises unrealistic returns etc. and don't invest in countries where the legal recourses are not well defined.

Anyone have any good/bad experience with DeVere? Over a reasonable length of time?
Thanks.

Run, keep running, and don't look back. They're one of the worst.

Brent Mayhew was the DeVere guy I remember from Oman.

Local blogger covered him a few years back.

http://tinyurl.com/hstxg6r

Thanks Guys:ok:

Excellent thread!


I work in the broad area financial services - have done for 35 years. I have two degrees in financial disciplines and professional qualifications in banking and insurance.


I mention these not to boast but merely to show that industry insiders are also well aware of the appalling value (and advice) given by so-called financial advisers in the Middle East.


Most of these advisers hold no professional qualifications, and even if they do it is rarely more than the equivalent of an A level. They may have been selling double glazing last year, and perhaps time-shares next year - they are salesmen, pure and simple.


They sell insurance policies (disguised as investment products) issued by the likes of Zurich, Generali, Friends Provident, RL360 etc. that are "manufactured" in the Isle of Man or Channel Islands. Interestingly, these products cannot be sold in those jurisdictions (or in the UK generally). This crap is for export only!


An earlier poster said that you shouldn't invest in anything you don't understand - this is wise advice. Remember too that there is nothing wrong with having money in the bank (probably a bank in your home country). An investment property in an area that you know, in a country with a well understood legal system, is also always likely to be sound.


If you want to make plans for retirement, or children's education, or whatever, do by all means get financial advice, but here are my three tips:
1 Use an adviser in your home country. Ask them to show that they are properly authorized/regulated, that they have appropriate (at least degree-level) qualifications, that they are members of an Ombudsman (or complaints-handling) scheme and that they have professional indemnity insurance;
2 Pay them a fee for the advice. Clarify in advance how much the advice will cost and how the cost is calculated. This means you will have to write a personal cheque to them, but it will be cheap in the long-run. Insist that this fee is the only remuneration that they may receive and that they do not accept any commissions (or other soft-dollars e.g. "training" conferences in Las Vegas) from the promoters of the products they recommend; and
3 Watch all other costs like a hawk. Pay particular attention to investment management fees. Pilots are expert at flying planes, not at stock-picking. Pilots should never invest in anything other than passive or index-tracking funds. These kinds of funds are available with investment management fees of 1% per annum (or even less). Stick to these.

DeVere Acuma (PIC) are Insurance Brokers only and are NOT registered or authorised by the DIFC or DFSA here in Dubai.

They hold a license with the Insurance Authority in Dubai to sell insurance not financial investments. You can file a complaint with them through their website www.ia.gov.ae

Here is the surrender charge table for Zurich Vista - based on a 20 year plan - 25 year plan is worse. The percentage value is what THEY keep if you stop payments for a period of time or close the policy. They need to charge this because they gave away all your contribution payments made in the first 18 to 30 months to the salesperson who sold you the product!


Year
1 - 100%
2 - 97%
3 - 92%
4 - 87%
5 - 81%
6 - 76%
7 - 70%
8 - 65%
9 - 60%
10 - 54%
11 - 49%
12 - 43%
13 - 38%
14 - 32%
15 - 27%
16 - 22%
17 - 16%
18 - 11%
19 - 6%
20 - 0%

At the end of year 10 they would keep a fee 162,000 USD assuming a 2500 USD pcm policy and no growth (which is to be expected with this product due to high fees). This is very different to the encashment value in the personal illustration which is not a NET figure.

Due to all the high upfront fees and commission the policy will only break even at year 10, assuming you will then pay to maturity.

Remember if you stop or even reduce your payments (left employment or changed jobs) they will continue to making charges as if you're still making the full payments. This will eventually wipe out your account. After a period of no payments, the account will automatically be surrendered and subject to the above fees anyway.

One further addition to Yorkshire Pudding's post is that these policies are often sold on the basis that you can reduce the monthly contribution at any time. This part is true, but the bit that you are not told (except perhaps in very small print) is that the charges will continue to be calculated on the basis of the original contribution.


So if for example you take out a 20-year plan saving $2000 per month, and subsequently drop down to $1000 per month, the charges will continue to be levied as if you were still saving $2000 per month.


Appalling stuff really.

We should really name & shame the 'advisors' that took advantage of us all.

Erm... All of them. Just pick any DXB based advisor.

The problem is they are only Senior Wealth Advisors in Dubai for 12 months or so, collect as much upfront commission as possible and move on to selling something. You have paid him/her for 20 years consultation fees upfront and they leave to sell luxury boats and the like.

Do also bear in mind that all of these guys have grand titles - at a minimum they are "Senior Wealth Advisers" or Senior Wealth Managers", even though some of them are just straight out of school!


I have never met a "Junior Wealth Manager" or a plain "Wealth Manager".:p

Simple. If I get a random call, about anything, and the first words I hear on answering are along the lines of, "Good morning Mr. Xxxxx, how are you today?".....end of call.

I think the random calls are something they do when things are quiet, they don't have a high success rate, but if you have nothing better to do, or if you are using lowly paid staff....


Most people who fall in to the spiders web that these guys weave meet them initially in a social situation (e.g. at the golf/rugby club etc.) or through school activities.

Utter scam - I was quite cheesed off to find that my name was given to one of these sharks when I joined Emirates, by a friend! The usual MO is that they sign someone up and then start hassling them for names of friends and colleagues that would also like to avail themselves of the same ripoff services.
Next thing you know some sharp suited DB who can't get a job in a real financial hub is round your place trying to sign you up to Zurich or whatever. I actually fell for it but luckily found a way out and got all my cash back (even plus a little bit of interest..). Luckily I realised what was happening fast - others are not so lucky.

I have looked over the website of this guy, Andrew Hallam, who is visiting the Gulf region in the coming days to give a series of seminars, mainly at schools, about investments:
https://andrewhallam.com/2016/12/mil...ebruary-march/

As far as I can tell he is the real deal, i.e. gives good solid advice on how to create a low cost investment portfolio, as opposed to being an insurance salesman.

It looks as if he may have a couple of books for sale, which I imagine you can take or leave.

If your kids attend one of the listed schools, and if you are free, it might be worth attending.


Disclaimer: I don't know and have never met Andrew Hallam.

If you do nothing else, buy his book "Global Expatriates Guide to Investing". It has chapters which specify what you should do with your money depending what country you plan to call home.

Follow his precepts (which essentially cut investment costs to the bone) and you will leave the region at least $250,000 wealthier than if you hire a "professional" to sell you things.

Hallam has nothing to sell but books - he is absolutely unexcelled for straight advice.

deVere has bought a bank in St Lucia.


What could possibly go wrong? Eh?

The Money Roundtable: Do long-term savings products serve their customers or their sellers? | The National

Great clip from Boiler Room. This is how your "financial advisers" are trained:
https://www.youtube.com/watch?v=JfIKzReNDF4

Andrew Hallam
 

Went to one of his talks.
Brilliant.
just advice.
No sell.
But his book is worth reading.

Should be gift from company on arrival!

Look it up. NOW.
https://www.amazon.com/Global-Expatr...e+to+investing

Amen. Or don't read the book and end up with $250,000 less in your pension fund. Simple indeed.

Devere is calling expats in Doha at the moment. Beware!

Beware indeed.

In Qatar any insurance intermediary (for that is what deVere is) must be regulated either by the Qatar Central Bank or the Qatar Financial Centre Regulatory Authority.

If you get a call from deVere ask who are they regulated by, and please post the answer you get here.

They may say that they are licenced by some Ministry or other, but that's just the ordinary business licence that any bakery or dry cleaners will have - it will not permit them to sell or advise on insurance policies.

(Same applies to any "financial adviser" that contacts you in Doha.)

It has been reported that "The UK Financial Conduct Authority has ordered Holborn Assets Ltd to immediately cease all pension transfer business, particularly that introduced by overseas advisers."

http://www.international-adviser.com...ews_21_03_2017

Holborn Assets is very active in the GCC.