Investing one?s hard-earned cash can be a daunting prospect.

But certified financial planners staffing a dedicated investment centre at the Bank of Bermuda say they can make it a little less painful by going through investment options and fundamentals with would-be investors.

Potential clients may also find some comfort in the bank?s policy of not paying commissions to its investment advisors, as this means one will not be under pressure to make investments that could boost the advisor?s remuneration.

Many other financial services companies do reward their staff on a commission basis based on the amount of investment business transacted ? but bank employees said the bank had long had a no-commission policy.

The investment centre was set up two years ago, with staff indicating that renovations at the bank could see them eventually given a larger dedicated space to work from.

Currently they are located in the main banking hall at the Bank of Bermuda, in the northwest corner opposite the one-item deposit teller station. The centre is manned by a number of full-time certified financial planners and other investment professionals.

To highlight the service that is on offer at the investment centre, the bank recently launched a new advertising campaign that features investment centre professionals in a personal way.

Two of the bank?s advisors featured in those ads this week walked through what clients might expect to get out of a visit to the investment centre.

Certified financial planner and investment centre manager Jason Schella said the centre was established to enable the bank to ?provide the people of Bermuda an area where they could look at their investment options?.

The bank said last week it was, with the ad campaign, targeting investment business from a cross-section of Bermuda residents including flush former shareholders. Bank shareholders were paid, by estimates, up to $900 million of a total $1.3 billion pot when the bank?s sale to HSBC Plc closed last month.

Investment Centre basics

Although you can make an appointment to meet with a financial planner, it is not necessary, with Mr. Schella saying they accepted walk-in business.

There is also no charge or expectation attached to having a consultation with one of the investment centre?s professionals.

Senior certified financial planner and vice-president Martha Myron, who also writes a weekly investment column in every Saturday, added that clients were able to meet with ?real and qualified? people.

Generally a client?s first meeting will be face-to-face but once investment decisions are made, the client has the choice of making further instructions by fax, telephone or e-mail.

?Clients have the ability to contact us on a continuous basis,? Mr. Schella said, adding that investment centre clients were kept apprised of the status of their investments through a posted monthly statement.

Both Mr. Schella and Mr. Myron said a full gamut of investment options could be sourced through the bank from its own All Points mutual funds, to investing in local stocks listed on the Bermuda Stock Exchange, to establishing an investment account to hold the desired mix of investments, whether equities, bonds, commodities, treasuries or in mutual funds operated outside of the bank.

Where appropriate, financial planners might also refer clients to the bank?s discretionary investment management division.

Although there to give advice, both said it was the bank?s policy that final investment decisions be made by the client.

Mr. Schella said: ?It is the client?s decision. We can help guide them on the suitability of investments but they should be fully aware of the options so they can make an informed decision. It is important the options (chosen) are suitable to everybody?s (individual) life stage and needs.?

Ms Myron said: ?Investing is a personal decision. We do not turn anyone away. Some are happy to get an overall picture (of options) and make their decision right away.

?Some may take several meetings to establish ?what is my goal? in investing.

?They know they need to structure their finances but they may not be sure which area to concentrate on. We can help them establish a working plan,? she said.

Mr. Schella added: ?We try and get clients to focus on the big picture before making one decision; to invest with all of their goals in mind.?

The centre has seen a surge in clients over the last three months, which Mr. Schella attributed at least in part to a number of Bermuda companies paying out staff bonuses in the last three months, as well as people wanting to get their finances back in shape after the holidays.

Both said they try to talk with clients about their overall investment goals and to take into account investment fundamentals including having diversified investments.

?Generally what we first do is ?get to know your client? by asking questions on investment goals and objectives, their timeframe for investing, income and liquidity needs and more.?

Banking requirements also require the department to follow ?Know Your Customer? (KYC) procedures put in place around the world to cut down on money laundering.

To that end questions must be asked to ensure that the investor is who they say they are, and that the funds are legitimate.

Mr. Schella said the KYC process normally takes place at the end of their meeting with a potential client, and always before investments are made. But he said ?nine times out of ten? we are dealing with someone who already banks with, and is known to, the bank.

To do that they ask would-be clients about any existing investments they might have, wanting to encourage mix of investments to minimise the inherent risk in having ?all one?s eggs in one basket?.

Both said that investors need not have a minimum amount of cash to seek investment advice, as even those with very little set aside could build up their funds through an interest-bearing savings account.

Ms Myron said the bank offered a range of deposit accounts ? from 90-day call accounts, 180-day call accounts, and other fixed-term deposits of longer duration ? could generate varying degrees of interest on the funds deposited.

She said: ?It is really important the client understands what they are investing in. We feel that with full disclosure; explaining the positives and negatives in each (type of) investment, they will really feel a lot more comfortable about their decisions.?