Sorry, readers, I have postponed the second part of `Reinsurance for the Rest of Us' for a couple of weeks. Lovely people from a couple of the industry leader companies have kindly volunteered to proof the article before publication. I often ask an expert in the field (or cull reports from experts) to review content, to be sure you are getting current accurate information.

Instead, here are responses to questions submitted by you, dear readers.

Because of Cup Match weekend and the early deadline for article submission, we decided this would be a good time for some answers.

MOST FREQUENTLY ASKED QUESTION How do I find a good financial advisor? Readers have commented that they have not always been happy with some financial advisors because `they felt that the financial advisor had his/her own best interests at heart, not the interest and needs of the client'.

Unfortunately, across the market boards, this appears to be a common complaint that has in turn led to a diminished respect for the description `financial advisor'. The continued acceleration in on-line trading stems partly from this same client disenchantment with advisors of one form or another pushing a commissioned product at them. `Client feelings turn to thoughts such as, what exactly is it that they do, that I can't do for myself'! Comments have been made to me such as `I gave them my money and they seemed to lose interest in me' and `I invested with them about three years ago, and no one has contacted me since'. I think we can all agree that these are not exactly financial advisor-client working relationships. Advisors, don't blame me, these are true statements from the disenchanted.

What constitutes a good investment advisor? This is not to say that there are not highly ethical people in the investment industry, but more often that not, when an individual is working on a commission basis only, the client may feel that the amount of the commission takes precedence over the need of the client. What clients fail to or do not want to realise is that an experienced ethical, professional advisor (yes, even commission-based) has a knowledge base that is absolutely invaluable.

He/she has seen it all, many investment cycles, aberrant market behaviour and irrational exuberance (as Alan Greenspan was fond of saying) and is a `good port in a storm to take refuge in' when the markets get ugly.

Licensing is key Many good financial advisors have taken further steps to distinguish themselves from the average pack, by constantly educating themselves (and thereby their clients). A financial advisor who has used the discipline to study for and pass licensed exams is a committed individual. He/she, by accepting the terms of a certain license, agree to strictly adhere to its governing body's ethics, rules, regulations and restrictions (which can be very severe to those fall into personal gain only habits). Those who are disciplined face possible public censure and a stripping of the license to practice. What a terrible thing to happen after years of horrendous effort to obtain a license. However, one or two bad apples do not ruin the barrel.

These are some of the things to look for when considering a financial advisor and his/her firm.

A License: CA, CFA, CFP, CPA, CLU, JD, Series 7 or equivalent and so on.

Bermuda has 20 people sitting for the US NASD Series 7 exam in October. This is great news.

Broad industry experience: Having a license is no substitute for experience, ask how long your financial advisor has been practising. Get a list of client referrals if you wish.

Service and products: What kinds of services does he /she provide? Investment advice, products, comprehensive financial planning and investments? Ask for a disclosure of conflicts of interest. If your advisor is selling proprietary products, you want to be sure you are being offered objective advice.

Anyone can call himself or herself a financial planner! If your advisor is touting financial planning, you have a right to see if he /she is operating within the comprehensive financial planning framework that has some very specific guidelines, known as the six steps. (For a complete description of a comprehensive financial planner and planning, call or write and ask for the FPA Bermuda Financial Planning Pamphlet, POB 437 Hamilton HM 11 or send me an email).

Compensation: Ask the advisor how exactly he /she is compensated: fee only service, fee and commission, commission only, management advisory services.

Firm Investment policy and license: Ask how your investments are handled, where they are custodied, what the process is for the investment firm to put you through in the know their client vetting process. Every investment firm conducting business in Bermuda has to conform to the regulations of the Bermuda Investment Business Act 1988. These firms are required to conduct business within many parameters, among them (for the Private Investor category) -- Act with due skill care and diligence in conduct of business.

-- Know your client -- know their financial circumstances and investment objectives.

-- Ensure as far as we can that the product (purchase or sale) is positively suitable for the client.

-- Not recommend a transaction, if client does not understand the risk involved.

-- Have appropriate reporting vehicles and disclosures relating to the training, experience and qualifications of staff and the transaction level they are competent to work at...

These revolutionary rules are in place for all of you! It is your right to ask for this standard, and to accept nothing less.

At the end of the day (my favourite Bermudian expression) remember that you, too, have a burden to demonstrate that you are a reliable client that the firm will want to do business with.

You have a right to ask for all relevant information that will make you feel that you are a valued client and that you can trust your advisor. If your advisor is forthcoming and objective with you, it can be the beginning of a good financial relationship. If after the interview process, you don't get that comfy feeling, walk away. You work way too hard for your money.

And finally, if you are still uncertain, feel free to contact the Financial Planning Association Bermuda POB 437 Hamilton HM BX Bermuda with your concerns and we will be happy to recommend a list of qualified advisors.

Bad apple true story About five years ago, I received a call from an accountant friend of mine who asked me to help her counsel about 150 tax clients. Both United States Internal Revenue Agents and the US Secret Service had visited many of these people. They were told to provide documentation to substantiate very large refunds paid by IRS on prior year's returns or face threat of frozen bank accounts, liens attached to homes, garnished wages and so on! IRS does not fool around, if fraud is suspected. Funnily enough, none of these people knew what the Agents were talking about. It turned out that they had all used the same tax preparer /accountant, a fellow we will call Mr. Sleaze, currently under indictment by the United States Government for fraudulent tax activity.

During this time also, Mr. Sleaze had studied diligently, had taken the US Certified Public Accountant's Standardised National exam (along with 240,000 others) and had just one module left to pass, before he could `get his ticket'.

Mr. Sleaze's tax scam worked by targeting hard-working first generation Americans, many of whom were totally clueless, when it came to US tax code.

They liked him because he got them big refunds. Unbeknownst to them, he would also file amended returns for prior years understating income and receive very large refund checks, which he then forged. BUT, he made one rather big mistake. He had every single check sent to the same Post office box in a small New Hampshire town. IRS compliance software picked up on this outside random occurrence and moved in. He was convicted of tax evasion and mail fraud. On the day they took him to federal prison, he was informed that he had finally passed the CPA exams and could apply for a license. Karma? Summer doldrums for the market. The only bright notes are the wonderful news about Bank of Bermuda, we are becoming a global investment world, aren't we? And American International, coincidentally also based here, with a 3 for 2 stock split and still maintaining a nice appreciation rate.

On a positive note Quite a few Bermudian professionals have studied, sat for and passed this arduous exam. Statistics -- only four percent (of 240,000) pass the first time; only 20-25 percent pass on all attempts. These Bermudians, I wish I could name them, not only passed but managed to learn the tax code and laws, legal code and laws and accounting and auditing rules of another country!!! If you know one of these CPAs give them a big pat on the back. Well Done.

Enjoy the holiday everyone.

Under no circumstances does the information in this column represent a recommendation to buy or sell stocks or any other investments. Readers needing specific assistance should seek professional advice from their financial advisor.

Martha Myron CPA is a Bermudian, a Comprehensive Financial Planner, a NASD Series 7 licensed investment broker and a US tax practitioner. She is Programming Chair for the Financial Planning Association /Bermuda. Questions regarding this article may be sent to her at 234-0290 or Email: marthamyron y northrock.bm CHART