I was shocked that the Vice-Present of the AFAS, Mr. Vincent Ee, can say that fee-based financial planners are only interested in “coming up with a nice report and charging a fee.” This shows his and AFAS total lack of understanding of the fee-based financial planning business. How did he end up becoming the Vice-President of the AFAS? No wonder the financial industry cannot excel. I was so angry with what AFAS stand on fee-based financial planning is that I wrote to the Straits Times to complain.
The following was published on the ST Forum Online on 31/3/2012: "AS A fee-based financial practitioner for many years, I take issue with the reported comments by Mr Vincent Ee, vice-president of the Association of Financial Advisers Singapore ('Financial advisers seek gradual changes'; Thursday).
He said financial advisers who are paid a fee for their advice, rather than commissions based on the products they sell, would be 'interested only in coming up with a nice report and charging a fee'.
The report is necessary for documentation and compliance, but is in no way the central focus of the client-adviser relationship.
Professional financial planners adhere to the industry-wide practice of a six-step process in financial advisory, which includes the obligation to implement and review the financial plan. The process is embraced by professional bodies such as the Certified Financial Planner and Chartered Financial Consultant.
Consumers who want to have greater confidence that the fee-based adviser will follow-up on implementation and provide an ongoing review may wish to engage only those who have obtained the ISO 22222 certification.
To obtain such certification, advisers are required to submit documentary evidence of adhering to the six-step process.
See this related Business Times article: Fee-based advisory service the way to go
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