Sunday, April 25, 2010

Payment of commission

Some financial advisers have complained about not receiving the commission on policies that they have sold based on the unfair practice of their advisory firm or the insurance company. An insurance adviser approached me to air this problem. While the advisers are being bashed (sometimes unfairly), they also face problems of their own.

Here is a letter of complaint to the papers (but not relating to the insurance industry).


Anonymous said...

Good morning Mr Tan

I am unable to ready the attachment



Anonymous said...

Dear Mr Tan,
Here are few life cases
1. Insured upgraded AVIVA Myshield Plan 1 through FA Rep A who left FA Firm A to FA Firm B. Apparently, the Rep through her effort to get the insured to upgrade, will not get the commission. It will go to the previous firm who does 'nothing' as confirmed by AVIVA. They say no vesting. Why implement vesting when the existing FA Rep in the 'old' firm does nothing. Shouldn't a upgrade plan considered new case which is much beneficial to insured. If this is the case, than insurers are forcing FA Reps to 'switch' policies which is unethical.
2. FA Rep leave FA Firm A to FA Firm B. Clients it seems when they write in to insurer to change servicing adviser, insurer has to seek 'permission' from the FA Firm. Which means clients purchased from FA Firm and not insurer? This is ridiculous.
3. Income is very good, they transfer both servicing and commission rights to the new FA Rep when client write in. They do not consult the FA Firm.
4. In some firms, though Income has paid them the commissions, they claimed that they need client policy schedule and NRIC before they pay the FA Rep and thay say this is MAS guideline and policy. Is this true? Some firms just pay based on the Income Commission Statement.
5. General insurance commissions, if FA Rep forgot to 'file' with FA Firm and did after about 8 mths or later, does the FA Firm have right to refused payment and say that their 'books' closed?
6. Shouldn't all unpaid commissions be put under so called 'separate account' and not put under company's P & L as profits?
7. I know of a case, the FA Rep went as far as MP and MAS. MAS cannot do much and say it is company business decision.

FA Reps really need a 'body' to be their voice just like all other professions.


Tan Kin Lian said...

Reply to 9:23 AM
I clicked on the link and it was downloaded. The link seem to be okay. Try it again.

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Tan Kin Lian said...

to 11:34 am

i have changed the link. hope you can read it now.

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