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 … [Read more...]
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The financial advisory industry in Singapore is notorious for mis-selling. I hope to highlight this issue through this blog
Your relationship with your financial institution is an adversary one despite regulation
I want to write something that will confuse your mind. Since this is a financial blog, it will be pertaining to financial matters. Here are some food for thoughts. If an activity is regulated by a government body, it means the activity can be illegal or legal depending on whether it fulfills the prevailing regulations set by the regulatory body. If an activity is not regulated by a … [Read more...]
What is meant by ‘standard terms’ (for insurance)?
A few of my clients told me they have pre-existing illnesses. They wanted to buy product X. I told them that if the insurer remains silent, it is excluded because the standard contract says so. So they went ahead with the transaction (their agents). The underwriting was quite smooth. The premium was accepted and the policy issued at ‘standard terms’. I told them that based on ‘standard terms’, … [Read more...]
What Spa, Timeshares have in common with life insurance?
Time again and again, we hear of customers demanding back their money for their Spa packages. News such as 70 customers demanding S$249,000 from True Spa have become too common and most people would just skip reading the news. In 2010, the top number 1 and 2 complains which CASE handled were related to ‘Beauty’ and ‘Timeshare’ respectively. According to the report HERE by CASE, “The beauty … [Read more...]
NTUC Income i-Term is cheaper but Company pushes X
I met a financial adviser from another firm who told me that his entire FA firm is pushing for X which is a term insurance that covers death and TPD. He told me that X is very competitive and that is why the firm's entire advisers are selling X instead of NTUC Income i-Term. So I decided to do some calculation. Parameters: DOB 1/1/1980, Male Non-smoker. Quote below covers death and TPD for … [Read more...]
Fake $8m investments sold to accredited investor
I thought it was such a news to learn about an insurance agent selling fake US$5m life insurance. But in the news is a report of a case of a fake $8m investment account. According to business times entitled “Client sues SocGen over his missing millions here” dated 14 October 2010, an accredited investor thought he had $8 million in his investment account but in reality it was only worth $252,652. … [Read more...]
Top of the Table (TOT) AIA insurance agent involved in US$5m fake policy scam
Today in Sunday Times titled "US$5m insurance scam", it was reported that an Indonesia businessman is suing an Top of the Table (TOT) ex-insurance agent for selling him a fake insurance policy called the "Thank You Policy". In her defense, the ex-agent claimed that she was merely an accomplice as the ploy was conceived by the client. Although the court will have to decide who is telling the truth, … [Read more...]
Professionalism goes beyond instruction taking (Wills) Part 2
In a recent high court case of Soh Eng Beng (as executor and trustee of the Estate of Soh Kim Poo, deceased) v Soh Eng Koon was a case with regard to an ambiguous clause in a Will. The judge has to decide the exact meaning of the clause. But as I read the case, my opinion is that it could simply be a genuine human error which all humans are not immune. Anyway I will not dwell on the human error … [Read more...]
The true meaning of Million Dollar Round Table (MDRT)
Very often insurance agents and financial advisers would state in their name cards that they are members of the MDRT. You can also see it in the newspaper when photographs of MDRT members are splashed in full page. So what is MDRT? Are they millionaires? Quoting from the website HERE: Founded in 1927, the Million Dollar Round Table (MDRT), The Premier Association of Financial Professionals®, … [Read more...]
Unpublished Letter to the Straits Times forum on Life insurance industry selling few insurances
I sent this letter to the Straits Times forum on 10 August 2010 but was rejected as they did not publish it. Perhaps it is just too boring. This is related to a blog article I wrote: LIA’s robust sales figure in life insurance unrelated to insurance. Dear Editor, I refer to the Straits Times article “Life insurers hit $2.6b in new sales” dated 6 August 2010. There are two … [Read more...]
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