‘I lost everything.’ At a friend’s recommendation, I invested my life savings in a firm abroad — now it’s all gone and the CEO was in court. What now?

Question: “I was introduced by a friend to a financial firm in the U.K. Shortly after transferring my money to them for management, I got a letter from the CEO saying they had put my entire life savings into high-risk investments and had I lost everything. After that, he never made contact again, though I did see through headlines that he was in court around the same time for mis-selling financial products.

They have since been sold to a large company with a majority investment from a U.S.-based private equity firm. My friends who initially introduced me to the firm also lost everything. What’s the recourse for dealing with a foreign firm? Is there anything I can do? Going forward, how can I make sure this never happens again?”

Answer: Sadly, the circumstances surrounding your situation are complicated, especially since you’re dealing with a foreign firm. And pros say you may want to find an adviser who is a fiduciary to help you going forward. Pros often recommend finding one on the CFP Board or NAPFA, and you can also use this free tool to get matched with financial advisers, from our ad partner SmartAsset.

“In all first-world countries, the financial industry is traditionally regulated by a supervisory body, so it is of the utmost importance that you document your case in detail and seek professional help to file a formal complaint about your case if you have not already done so,” says certified financial planner Alonso Rodriguez Segarra at Advise Financial. Filing this type of formal complaint may allow you to receive protection from a regulatory body in the U.K.

Have an issue with your financial adviser or looking for a new one? Email questions or concerns to picks@marketwatch.com.

If the firm is indeed regulated, you may have some recourse, but it’s not guaranteed. In the U.K., the Financial Ombudsman Service (FOS) handles complaints against regulated firms and it’s free to file a complaint. If you’re able to prove that the firm engaged in mis-selling, the Financial Services Compensation Scheme (FSCS) is another body that can help recover a portion of your assets.

Unfortunately in this case, the Securities and Exchange Commission and the Financial Industry Regulatory Authority don’t have jurisdiction over foreign firms. If the firm was not regulated, your best bet may be bringing a case to civil court in the country where this firm was, which may not be practical, depending on your ability and tolerance for foreign legal action.

Your situation provides some lessons for investors, including the importance of verifying that the investment you’re going to make is regulated or supervised by a regulatory body in a country with strong, credible financial regulation. “Off-shore investments are in most cases promoted as great opportunities where they offer high returns, always knowing that the higher the return, the greater the risk. Never invest all your life savings in a single investment and remember that the only protection is based on diversification,” says Segarra.

Regardless, going forward, you should always understand how your money is going to be invested and how your adviser will produce the high returns they offer you. “If this all sounds too complicated, consider hiring a fee-only financial adviser who works by the hour to review the proposal you’re being presented with, in order to obtain a second, disinterested and technical opinion. This will help you understand if the risk you’re taking is truly worth it,” says Segarra.

It’s not entirely clear if you are an American living abroad, or if you just invested with a foreign investment company, but certified financial planner Mark Struthers at Sona Wealth Advisors says, “For a cross-border financial planner, NAPFA is a good resource. There’s also the Global Financial Planning Institute for advisers that specialize in this area.” You can use this free tool to get matched with financial advisers, from our ad partner SmartAsset, as well as tools like CFP Board and NAPFA.

Have an issue with your financial adviser or looking for a new one? Email questions or concerns to picks@marketwatch.com.

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