I wish to post this article as a reminder to MAS and the financial institutions that they have the responsibility to ensure fair dealing outcome for customers. These should not be just hollow words, but should be pursued with conviction.
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MAS calls on banks, finance companies to lead in fair dealing
Thu, Feb 21, 2008
The Straits Times
THE MONETARY Authority of Singapore (MAS) has called on the board and senior management of firms from the banking, insurance and capital market sectors to lead their companies to improve the level of service offered by their representatives.
MAS issued a consultation paper on Thursday, stressing the responsibility of such top-level individuals, and also asking them to review their business operations to deliver what the authority calls 'fair dealing outcomes' to retail consumers. MAS has issued five 'fair dealing outcomes'.
One such fair dealing outcome is that consumers have confidence that the financial institutions put consumers' interests first in the conduct of their business.
MAS encourages financial advisory industry assocations to actively promote fair dealing outcomes among member firms.
Interested parties can provide feedback on the guidelines, which are available on the MAS website.
5 comments:
The President of the Law Society had written an article concerning the practice of the banks in holding their customers to be fully responsible for the loss caused by a forged check. This is a condition imposed in the terms of opening the banking account.
Is this a fair practice? Surely, the bank should share the responsibility if they had been negiglent in not checking the signature or not verifying with the customer, in the case of a large amount on the check?
What do we mean by "fair dealing outcome", when the banks can push all the responsibility to the customer and imposed unfair terms in the bank agreement?
One area in sales financial products to look at is inducements and enticements. For example, buy a life policy now and get extra personal accident coverage first 2 years free, or buy an ILP now and get an MP3 player or mobile phone free. And oh, do sign up now, promotion ends next week. Hurry!
This can't happen in the legal or medical profession. How to have a contract law promotion on offer, sue somebody now and get 20% off your legal bills or a free TV?!
How to have an hospitalisation promotion, stay 3 days get 1 day free or 1 week package 20% discount?! However, I also have to note that the medical profession also have it's vanity-oriented (as opposed to needs-based aspects. For example, there're always special promotion offers for plastic surgery, lasik etc.
Fair dealing guidelines are good for the customer service lounge and the pantry of the insurance companies.
All these guidelines are sham and farcical to pull wool over the consumers' eyes.In the first place, to show sincerity MAS should have enforced the laws that are supposed to protect the consumers. If it was done the number of agents would not continue to rise. Today it stands at 15000, a number that is far too large.This shows that many people think this is a get rich quick industry , plenty of suckers to con.
If MAS is serious the number of insurance agents should have been reduced to 10,000 by now and further reduced to 6000 , a number that is just nice for the industry.This 6000 will consist of professional adviser and NOT sales conmen and women who are not competent and honest or honest but not competent. These salesmen should be eradicated.
MAS,
What has happened to the investigation on the RMs?
What has happened to the second consultation paper on fair dealing?
What has happened to the talk about licensing all tied agents?
What has happened to the talk about tighening up the selling processes?
What has happened to suggestion to remove commission from insurance and investment products?
What has happended to all etc etc etc ??????
I hope not talk only and no action.
Can have all the laws but without enforcement they are as good as dead letter good for the trash and incinerator.
MAS should go for the CEOs if their salesmen commit misconduct.But is MAS doing that?
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