r/singapore • u/clarencechen181196 • 11h ago

News ‘Capital guaranteed’ label for investment-linked policies misleading: MAS, Life Insurance Association

https://bt.sg/ihrHq
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u/frozen1ced Own self check own self ✅ 10h ago

MAS said it expects FA reps to “act honestly and in the interest of customers when providing financial advice”.

“MAS requires all financial institutions to monitor the sales practices of their representatives and take prompt disciplinary action in accordance with internal policy.”

Come lemme give ya a straightforward solution:

Don't "expect", "require" or "monitor" liao.

Impose fiduciary duties on FA reps to ensure that the reps act in the best interest of their clients (and not their own wallets) and codify it into law, with actual penalties for infringement.

4

u/Durian881 Mature Citizen 4h ago

Make it personal liability. That will change behaviour.

8

u/Multifinality Mature Citizen 10h ago

When MAS uses such wordings, FI treats them as if it’s the law; no FAFO around here

7

u/jiancardboard 9h ago

Nah. Imo mas won't take action. Have never seen them revoke any licenses from banks or fi. At most some derisory fine like slap on wrist.

6

u/furious_tesla 3h ago

IMO, you can't impose fiduciarial duties on FAs because the vast majority of them don't even have the correct training. They are just salespeople with a questionable nameplate.

What needs to change is beyond the FAs. The industry itself should not be allowed to incentvise sales of high fee products by paying salespeople high commissions. Which would be majorly disruptive.

A solution already exists, and it is fee-based advisors. Paying for consultations as you would pay a doctor. But people rather get "free" stuff and do the equivalent of getting health advice from a supplements salesperson.