Saturday, October 30, 2010

Termination of Financial Adviser Reps

Dear Kin Lian
Recently a group of financial adviser representatives were asked to resign and given termination letters.  They were given reason like 'poor production' and rumours spread that one group was 'churning' instructed by MAS.
This group approached MOM and was turned away citing MOM does not help self employed and asked them to approach a lawyer.
Subsequently, they confront the CEO and the reasons given was the company is downsizing.  They highlighted that there are still 'poor production' people and why they are not terminated.  Furthermore, those terminated for churning, were not aware, no compliance issue etc. which the CEO cannot addressed.
The above resulted in loosing their commissions and estimated 1000 clients who to date not serviced.
Should they approached MAS, probably MAS will say its is business decision, they will not interfere.
Mr Tan, hope you can given some light to these people and I am sure there are many others in the self employed industry need justice to be done
Thank you
 Pathetic observer

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3 comments:

  1. hongjunOctober 30, 2010 8:15 AM

    wow.. that's a lot being affected.
    wonder which company?

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  2. zhummmengOctober 30, 2010 11:06 AM

    If these agents didn't commit any misconduct there is nothing to fear. They can apply to other insurance companies which are desperate for salesmen. If they committed churning or had engaged in unethical selling it is too bad they ought to be sacked and license revoked..They failed the fit and proper criteria and if the industry has fewer of these people the safer for consumers.

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  3. AnonOctober 30, 2010 8:07 PM

    My colleague, who is one more the more ethical people I've known while working at a large insurer, was forced to resign as her sales were not good. Unlike other agents who were more than happy to close the deal whenever they can, her concern for her clients made it difficult for her to close blindly and thus her sales were not as good as others.

    Myself, I am actively leaving the company even though I have done okay and will lose all my recurring for doing so. Not only do some insurers/FA firms usually sell products of poor value to consumers, they have unfair contractual agreements with the agent with clauses that allow the firm to terminate them without reason, and deny them of their clients as well as all recurring commissions. My clients' and my interests are why I am going to join another firm.

    Unfortunately I doubt the people involved have much recourse even if they didn't commit any misconduct due to their contractual agreements.

    I have since come to realise that the finance industry is a dirty one.

    ReplyDelete