So, what is so special with the word "independent" before a Financial Adviser? With the word "independent", firms market themselves as champions of the consumers by recommending financial products based on consumers' financial needs and not by pushing or hard-selling financial products because of commissions. Is that really the case?
The next time a Financial Adviser tells you he is Independent or from IFA, you may want to rethink what it really means. As defined in Singapore's Financial Advisers Act (FAA), "only financial advisers who can demonstrate that they do not have financial or commercial links with product providers that could influence their recommendations should use the term "independent". Just like perfect competition in Economics, is it really possible in the real world? The only way IFAs can be truly independent is IF they have access to all the products in the market and that is not the current situation.
Most financial advisory firms actually do not qualify as independent if the definition from FAA is strictly adhered to. So some firms skirt the issue by only saying so to their customers verbally and being smart enough not to label "independent" even on their stationery for fear of being revoked of their licenses.
The main issue as highlighted in the article? Volume Bonuses - which can be in the millions, given to financial advisory firms as bonuses for hitting quota of sales or renewals of specific products. The even more shocking thing? Volume Bonuses may be paid in advance when financial advisory firms make commitment to the quotas they will be hitting. Failure to hit the targets will result in financial advisory firms having to repay these volume bonuses.
As the article rightly pointed out, these financial incentives may result in not so independent advice as financial advisory firms may skew their remuneration structures to fulfill their commitment to avoid returning bonuses. What makes these firms' pro-consumers and independence stance even more questionable is that often times, these volume bonuses or commissions are not transparent and are hidden from customers.Which makes it a greater hidden danger.
Instead of basing your judgement and decision when selecting a Financial Adviser on whether they are independent or tied-company's Financial Consultant, judge them on their merits and professional advice.
Real estate investment clubs are awesome. Networking with other investors is really crucial. Your
ReplyDeleteresults in property investing and the real estate in Metairie
you're able to get money from are dependent upon the people you draw investment advice from.
Your blog provide transferring pensions and equity funds abroad with a schemes.Thanks for sharing this.
ReplyDeleteAnnuity advice Bristol & Pension Adviser Bristol
The story of my first 25 days in the DR and How I banged 31 Dominican girls in that time. You will see them and how and where I got all the Dominican women.
ReplyDeleteclick here.... Shenglin Xian
. Specialized investigation is required in the event that you need to be triumphant.article view source
ReplyDeleteWe may give such an elucidation: "finances represent cash resources of production and usage,home
ReplyDeleteA great job you have already done. I’m really delighted to see your amazing work.
ReplyDeleteYolasite blog
or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. Financial Advisors Sydney
ReplyDelete
ReplyDeleteI really like what you guys are usually up too. Such clever work and reporting! Keep up the terrific works guys I've included you guys to my own blogroll. yahoo sign in
This would spare extensive exertion that is engaged with dissecting the information, moving the information onto distinctive spreadsheet and contributing the information into the financial frameworks.
ReplyDeleteHändlerschutz
www.mortgage-advice-online.org is not only useful for the financial personnel but also for the common men who want to calculate their interests.
ReplyDeleteRegularly, non-bank loan specialists don't hold storehouse accounts. Non-bank loan specialists may not be too known as their enormous bank partners. the cost
ReplyDeleteI think this is an informative post and it is very beneficial and knowledgeable. Therefore, I would like to thank you for the endeavors that you have made in writing this article. All the content is absolutely well-researched. Thanks... financial news for today
ReplyDeleteThis article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer. I’ll be back day in and day for further new updates. http://ketquamoinhat.com/
ReplyDeleteCharles R. Green & Associates Inc., we provide the highest level of service possible.
ReplyDeletefinancial planning fort worth
I can set up my new idea from this post. It gives in depth information. Thanks for this valuable information for all,.. democracia
ReplyDeleteVery effective and useful article.
ReplyDeleteI was finding a professional photoshop service provider but after seeing your post I have some good knowledge on this too.
I can recommend primarily decent and even responsible tips, as a result view it: Best Forex Signals
ReplyDelete