Up to 70% of financial advisers’ recommendations were unsuitable, says MAS mystery shoppers survey

Last Updated on 26, November 2016

MAS commissioned an external consultant to conduct a mystery shopping exercise in 2012 to determine the quality of advice given out by financial advisers[1].  The MAS mystery shoppers' statistics were as follow:

• 28% of the recommendations were suitable;
• 40% of the recommendations may be suitable;
• 30% of the recommendations were not suitable.

Because ‘may be suitable’ means potentially not suitable, what the MAS mystery shoppers survey is saying that up to (40+30 =) 70% of financial advisers’ recommendations are NOT suitable.

Imagine you seeing a doctor and there is up to 70% chance he will prescribe poison to you. Or imagine going for a surgery with a 70% chance he will take out the wrong organ.

That is what is happening to the financial industry.

[1] http://www.mas.gov.sg/~/media/MAS/Regulations%20and%20Financial%20Stability/Regulations%20Guidance%20and%20Licensing/Financial%20Advisers/Others/MSFindings2012.pdf

Like this article? Subscribe to my newsletter below for more.

Get regular Tips on Financial Planning. Free subscription for 3 years. Covers all aspect of financial planning such as 'How much salary you should have?', 'How to avoid insurance that is not suitable?", 'What are the retirement planning methods?", etc

Name:

Email: