I keep on getting queries from clients and potential clients that they want to terminate their 101 ILPs. This after they realized that they found it to be not suitable. What are 101 ILPs? 101 ILPs are investment wrapped under an insurance contract which provides very little insurance coverage. Typically, the death benefit is 101% of the investment market value. Thus, financial practitioners … [Read more...]
You are viewing articles categorised under Unethical sales process
The financial advisory industry in Singapore is notorious for mis-selling. I hope to highlight this issue through this blog
Here’s a video by a bank on how it anyhow sell Universal Life
One of my client sent me this webinar video on legacy planning. The first 11 minutes is educational and I generally agree with the speaker. So you can safely watch first 11 minutes without much harm. But after that, it started selling "koyok" - Universal Life. https://www.youtube.com/watch?v=wW89KGi5AJY The speaker uses Universal Life as a debt cancellation tool and as well as the income … [Read more...]
Dollar Cost Averaging for 30 years until 89 years old?
Question: “Today I met a financial adviser for retirement planning who encouraged me to do dollar cost avearging. I was very impressed with him. I told the adviser that I got $500,000 to invest for retirement. He instead recommended that I 'go slow' by investing a small amount in order to avoid investing at the peak of the market. I understand its called dollar cost averaging. I was recommended to … [Read more...]
A client who spent $27,000 a year on insurances
There was an article Does it pay to stick to a big name in insurance? (Straits Times 30 Dec 2016) which asked the question whether should consumers buy from larger insurance companies in hope of getting better returns. I felt that the question is a wrong question. Insurance is meant to protect and not meant as an investment. Unfortunately, majority of the policies sold were not meant to protect … [Read more...]
Complains against banks & life insurers surged; how to avoid becoming a victim
Financial Industry Disputes Resolution Centre Ltd or FiDREC for short has reported an increase in complains against financial institutions. Complains against banks were up by a whopping 48%; for life insurers, the complains were up by 31%. Complains against licensed financial advisory firms and insurance intermediaries was down slightly by 5%. Source: FiDREC annual report 2015/2016 and FiDREC … [Read more...]
Swiss Cheese Model approach to financial advice
I was at expo the other day looking to buy household appliances when I discovered that the number of insurance and financial adviser salespersons were more than household appliances salespersons! These agents tried to sell me all sort of products from saving plans to Aviva Mycare. I survived the ordeal as I told everyone who approached me that I am a financial adviser. My wife got harassed … [Read more...]
The Commando Financial Adviser – fast closing and fast disappearing act
A lady came to my office to find out more about the financial planning service I offer. She shared with me her ordeal with her agent and gave me the full go-ahead to share her story on this blog. She said she bought the AIA Family First Protect in November 2015. But she said she has little idea of what it was. The agent was also highly pressurizing and she was pressured to sign up for the … [Read more...]
Swiber Holdings defaulted bonds, a commentary on how the system works
The Swiber Holdings is another lemon product sold to Accredited Investors. Here is another article on lemons. As everybody already know by now that Swiber Holdings bonds have defaulted. It seems a lot of people bought its bonds. Who are these individuals? These individuals are rich people known as ‘accredited investors’. According to the Straits Times report, “Swiber saga DBS says bond sales … [Read more...]
I was forced to apologized for an unfavorable product review
For those who follow my blog for a long time will notice that I seldom write on any kind of product review. The reason is because 7 years ago, I had a very bad experience. I did a product review on my blog. It was a very lousy product. The funny thing was that I did not mention the product name nor the product provider. However, the product provider saw my blog article and immediately … [Read more...]
No advice given, few documentation and non-disclosures but earns easy money
Here is an example on how a financial adviser sold a life insurance product. The following is a scanned image of a section of the KYC: In the KYC, the client declared "I do not want any advice from my adviser.". Has anyone ever wondered why a client does not want any advice if the product is purchased from the adviser? When the client declares of not wanting any advice from the … [Read more...]
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