Sunday, September 27, 2015

Rampant mis-selling in the bank


The bank and the insurance don't care how this case was closed or whether the poor old lady could continue with the premium. To both the bank and insurer and the salesman/wealth manager, the case is a revenue and commission to them. Everyone is happy except the old lady when she found out that she could not pay and the loss of part of her saving.

This is RAMPANT in the industry. Even with the so called 'raised' standard of advice by LIA, the salesmen and their insurance companies are circumventing it.

The cart before the horse approach is common, i.e. sell the product first then think of how to write the fact find to justify the recommendation. All is done with collaboration of all parties in the chain of command, i.e. from the salesman to supervisor and to the independent auditor , all with the blessing of the company CEO.

Why is MAS so naive or ignorant to know what is going on in the insurance companies and the banks? Why? why? The regulator must be beholden? have vested interest? or obeying directives from the top top boss or the politicians?

Perhaps, this issue of miss-selling should be brought up at the Hong Lim Park to protest against the authority for burying their heads in the cow dung. We don't hear of any enforcement by the regulator against insurance agents and the insurance companies and fine them heavily

The situation is bad. You describe it as RAMPANT. I get many requests from consumers caught in this trap. So, I tend to agree with your statement.


1 comment:

Anonymous said...

MAS is no where to be compared to UK FSC as regulator. FSC is a no nonsense regulator. The fine by FSC could be in the tens of millions and not a slap on the wrist. It looks like our regulator is a big wayang king when it comes to enforcement. Errant insurance agents should be be fined heavily, sacked or jailed for the gravity of the offences.
I heard 2016 the Balance Score Card will come into force and I expect to see many agents, I really mean many, will be disciplined under this new regime for misconducts. We will watch MAS whether to see if it is really a wayang king, As consumers we should take to the 'streets', (at Hong Lim Park, lah) to protest against the wayang king if it doesn't enforce the rules.
As consumers we demand fair dealing. If there is no fair dealing the CEOs of the insurance companies should be charged too because fair dealing is his or her responsibility and accountability.
Pay heed, CEOs . Don't take this as lightly. We will raise in Parliament that CEOs of insurance companies have to bear the brunt of their front line staffs/agents/salesmen's more 'taichi' and MAS should not also protect these top "charlatants.'

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