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PR Newswire
30-09-2013, 05:03 PM
Will the new measures help? The direct sales might help. The web portal for price comparison might help, but the new cap on commission rate might not...
New product web portal and balanced scorecard for financial advisers: MAS
SINGAPORE — A new balanced scorecard remuneration framework will be implemented in January 2015 to ensure financial advisers (FA) pay more attention to customers’ interests. A web portal will also be launched in late next year to allow consumers compare prices of features of life insurance products.
These are among the decisions made by the Monetary Authority of Singapore as it responded to the feedback on recommendations of the Fair Advisory Industry Review (FAIR).
FAIR was conducted since April last year to raise the standard and professionalism of the financial advisory industry. As many as 28 recommendations were made by the FAIR panel, of which 19 were accepted by MAS and eight were modified.
Under the new scorecard framework, FA representatives will be graded by quarterly sampling checks of their transactions, to be conducted by their companies — which will then report to MAS. Major infractions can lead to representatives losing some or all of their variable remuneration.
But with the stringent framework, MAS is allowing a more lenient commission structure than was originally proposed. MAS now raises the first year cap on commissions from the proposed 40 per cent to 55 per cent, with the remainder spread over at least five years or the remaining commission payout period, whichever is shorter.
Also among the main thrusts of the adopted recommendations is to set up a direct sales channel by mid next year, to give consumers the choice to purchase basic life insurance products directly from companies, without only a nominal administration fee.
http://www.todayonline.com/business/new-...visers-mas
New product web portal and balanced scorecard for financial advisers: MAS
SINGAPORE — A new balanced scorecard remuneration framework will be implemented in January 2015 to ensure financial advisers (FA) pay more attention to customers’ interests. A web portal will also be launched in late next year to allow consumers compare prices of features of life insurance products.
These are among the decisions made by the Monetary Authority of Singapore as it responded to the feedback on recommendations of the Fair Advisory Industry Review (FAIR).
FAIR was conducted since April last year to raise the standard and professionalism of the financial advisory industry. As many as 28 recommendations were made by the FAIR panel, of which 19 were accepted by MAS and eight were modified.
Under the new scorecard framework, FA representatives will be graded by quarterly sampling checks of their transactions, to be conducted by their companies — which will then report to MAS. Major infractions can lead to representatives losing some or all of their variable remuneration.
But with the stringent framework, MAS is allowing a more lenient commission structure than was originally proposed. MAS now raises the first year cap on commissions from the proposed 40 per cent to 55 per cent, with the remainder spread over at least five years or the remaining commission payout period, whichever is shorter.
Also among the main thrusts of the adopted recommendations is to set up a direct sales channel by mid next year, to give consumers the choice to purchase basic life insurance products directly from companies, without only a nominal administration fee.
http://www.todayonline.com/business/new-...visers-mas
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