Excuse me, are u an independent adviser?

Some key points of the letter published in the forum page of the straits times:

Jul 26, 2010
What it means to be an 'independent' financial adviser

WE REFER to Mr Larry Haverkamp's letter ('Onus on insurers to boost transparency'; July 12).

1) The use of the term 'independent' has been a much debated issue, and rightly so. The Association of Financial Advisers (Singapore) recognises that the use of the term 'independent' under the Financial Advisers Act (FAA) connotes a serious undertaking to provide clients with objective and unbiased advice. So the term should not be used by financial advisers and their representatives if they are unable to demonstrate that they do not have financial or commercial links with product providers that are capable of influencing their recommendations, as spelt out under Section 64 of the FAA.

2) Investors in Singapore must recognise that they need to take responsibility for the decisions they make and cannot expect the Government or the institutions to look after them all the time.

Raymond Ng
President
Association of Financial Advisers (Singapore)


Comments:

1) It is not rocket science to determine if a firm is "independent" or not. However, it takes enforcement to ensure that it is used appropriately. And that is lacking.

2) Consumers need to take responsibility. Many are so ignorant and expect the Government to protect their interest while they take no responsibility in educating themselves. Blaming everything else when things go wrong.