Many financial advisers could get into very serious trouble if a consumer were to take up a case against them under an existing law, called the Financial Advisers Act. A copy of this Act can be viewed at this link.
You should pay special attention to clause 7.2 to 7.3 as follows:
Reasonable Basis
7.2 A financial adviser should ensure that its recommendations are suitable for the client, taking into account the information it has obtained from the client. It should ensure that its recommendations are based on thorough analysis and take into account alternative investment options.
7.3 A financial adviser should explain to the client the basis for its recommendation and why the investment product it is recommending is suitable for the client.
Read more at
http://www.fisca.sg/ArticleDisplay.aspx…
You should pay special attention to clause 7.2 to 7.3 as follows:
Reasonable Basis
7.2 A financial adviser should ensure that its recommendations are suitable for the client, taking into account the information it has obtained from the client. It should ensure that its recommendations are based on thorough analysis and take into account alternative investment options.
7.3 A financial adviser should explain to the client the basis for its recommendation and why the investment product it is recommending is suitable for the client.
Read more at
http://www.fisca.sg/ArticleDisplay.aspx…
At the newly renovated DBS at Junction 8, a young RM was selling a Manulife product, a savings plan disguised as an insurance 5 year plan.
ReplyDeleteHighlight - 2.2 p.a. return plus additional non guaranteed % return if left untouched till maturity.
See the catch here, the additional return is only based on the total interest received, not the principal invested amount, the latter not
brought to client's attention.
The grace period for client to consider is not foolproof, if certain info are orally omitted upon face to face selling.
With phone recordings in possession, can bring charges against the RM?
Are these young FA really trained by DBS? Careless seniors could fall prey easily to sweet talk, esp with free ice cream treats given during sales pitch.