82 people replied to the poll. 65% are willing to join FISCA for an annual subscription of $36. Some people think that this rate is too low and are willing to contribute up to $60 or $120 to get better services.
35% do not wish to join FISCA. Among them are the insurance agents and relationship managers who feel that FISCA may affect the way that they do business now. The other respondents prefer to have the services for free, if possible.
I wish to encourage Singaporeans to be willing to pay a modest fee for service and advice. By spending some money, you can save a lot of money that is taken away through hidden charges (e.g. $2,000 or more on a typical financial contract) or can cause you to lose your entire principle (e.g. high risk credit linked notes).
Be willing to invest time and money to be educated. You can be much better off!
Sunday, December 21, 2008
Customer feedback on plan V
Hi,
I wish to share my experience on plan V. I suffered a severe penalty for severing the plan after 24 months. I lost over $30,000 from an investment of close to $50000!
I gave up on the plan principally because of the rigidity i.e. you must pay continuously for over 20 years otherwise you will lose the bonus or incur hefty penalty. For a plan that costs over $2000 per month, this is extremely expensive.
I am also frustrated over the lack of transparency, the financial product is very complex with many inherent fees and charges. I am certainly not aware of the generous commissions that my financial adviser was getting at the time this plan was introduced to me, certainly no disclosure of any sort. The product was sold to me as an exclusive financial investment instrument with extremely good returns (including the so-called bonus). The issue of the hefty fines and penalties was not highlighted, even if they may be in the fine print somewhere.
At the end of the day, it is my fault for not carefully scrutinising these policies and to be taken in by financial advisers that I once trusted. But I fully agree that people should be educated and warned about financial instruments that have many conditions and contractual rules that bind and severely disadvantage a client.
When I cancelled my policy, I was told that the only time I can get the money before the matuity date, without any penalty was when I die. Even critical illness was not accepted! Unfortunately, these penalties, commissions and heft charges, are something that is difficult to glean because they are hidden, obscured by fine print and perhaps, simply not fully understood or appreciated by non financial people like me! I am tertiary educated person and I simply don't have the time and resources to go through these complicated rules!
I hope more people should be aware of this and to be very careful of expensive and complex financial investment plans. Don't be fooled by the sweet promises of unscrupulous advisers!
I wish to share my experience on plan V. I suffered a severe penalty for severing the plan after 24 months. I lost over $30,000 from an investment of close to $50000!
I gave up on the plan principally because of the rigidity i.e. you must pay continuously for over 20 years otherwise you will lose the bonus or incur hefty penalty. For a plan that costs over $2000 per month, this is extremely expensive.
I am also frustrated over the lack of transparency, the financial product is very complex with many inherent fees and charges. I am certainly not aware of the generous commissions that my financial adviser was getting at the time this plan was introduced to me, certainly no disclosure of any sort. The product was sold to me as an exclusive financial investment instrument with extremely good returns (including the so-called bonus). The issue of the hefty fines and penalties was not highlighted, even if they may be in the fine print somewhere.
At the end of the day, it is my fault for not carefully scrutinising these policies and to be taken in by financial advisers that I once trusted. But I fully agree that people should be educated and warned about financial instruments that have many conditions and contractual rules that bind and severely disadvantage a client.
When I cancelled my policy, I was told that the only time I can get the money before the matuity date, without any penalty was when I die. Even critical illness was not accepted! Unfortunately, these penalties, commissions and heft charges, are something that is difficult to glean because they are hidden, obscured by fine print and perhaps, simply not fully understood or appreciated by non financial people like me! I am tertiary educated person and I simply don't have the time and resources to go through these complicated rules!
I hope more people should be aware of this and to be very careful of expensive and complex financial investment plans. Don't be fooled by the sweet promises of unscrupulous advisers!
Saturday, December 20, 2008
FISCA - the proposed approach
65% of respondents like FISCA to get most of its funding from its members, to remain independent and act in the interest of consumers. 75% prefer to avoid getting advertisement and sponsorship from financial institutions. 20% welcome funding from Government for general expenses, and 35% for special projects.
90% feel that FISCA should encourage members to spend time to learn about financial matters.
56% like the subscription to be $36 per year; the remainder are willing to pay a higher subscription.
Proposed approach
We will set up FISCA with an annual subscription of $36.
Members are encouraged to log in each week and read the newsletter, educational and research materials. and assessment test.
Additional services will be provided to members at a modest fee:
a) Handle complaint on mis-selling
b) Handle complaints on insurance claims
c) Attend educational talk
d) Simple financial planning advice
e) Buying of recommended financial products
FISCA will encourage members to pay a modest fee for advice and service. This will save them several thousand dollars in paying the hidden charges embedded in financial products, such as life insurance and structured products. More importantly, members can avoid losing their capital in risky products that are not properly disclosed to them.
An important task for FISCA members is to spend time and be educated about financial matters and to make the correct decisions. FISCA will help members to achieve this goal by providing the relevant materials for members. FISCA will use as much volunteers as possible, but some full time staff have to be engaged for the research and administration.
It is important that FISCA should have funds to carry out their work. I hope that more members will come forward and be willing to pay a subscription to make it possible for FISCA to be effective in its work. Do not expect it for free.
90% feel that FISCA should encourage members to spend time to learn about financial matters.
56% like the subscription to be $36 per year; the remainder are willing to pay a higher subscription.
Proposed approach
We will set up FISCA with an annual subscription of $36.
Members are encouraged to log in each week and read the newsletter, educational and research materials. and assessment test.
Additional services will be provided to members at a modest fee:
a) Handle complaint on mis-selling
b) Handle complaints on insurance claims
c) Attend educational talk
d) Simple financial planning advice
e) Buying of recommended financial products
FISCA will encourage members to pay a modest fee for advice and service. This will save them several thousand dollars in paying the hidden charges embedded in financial products, such as life insurance and structured products. More importantly, members can avoid losing their capital in risky products that are not properly disclosed to them.
An important task for FISCA members is to spend time and be educated about financial matters and to make the correct decisions. FISCA will help members to achieve this goal by providing the relevant materials for members. FISCA will use as much volunteers as possible, but some full time staff have to be engaged for the research and administration.
It is important that FISCA should have funds to carry out their work. I hope that more members will come forward and be willing to pay a subscription to make it possible for FISCA to be effective in its work. Do not expect it for free.
FISCA Survey Results (2)
20 people responded to the survey.
> The expressed interest in the following services:
> Educate members on financial products through website 100.0%
> Advice members on mis-selling and unethical products 100.0%
> Recommend suitable financial products 84.2%
> Advice members on insurance claims 73.7%
> Hold educational talks (at a modest charge) 68.4%
> Advice members on service contracts, e.g. telcos 63.2%
> Provide advice through a hotline 57.9%
> The expressed interest in the following services:
> Educate members on financial products through website 100.0%
> Advice members on mis-selling and unethical products 100.0%
> Recommend suitable financial products 84.2%
> Advice members on insurance claims 73.7%
> Hold educational talks (at a modest charge) 68.4%
> Advice members on service contracts, e.g. telcos 63.2%
> Provide advice through a hotline 57.9%
Barclay CEO apologies
http://news.bbc.co.uk/2/hi/business/7793035.stm
Mr Varley also told the BBC that the banking industry was going through what he called a "public relations crisis" and must apologise for what went wrong. "We have to have a banking industry in which consumers have trust and in some cases that trust has broken down," he said.
"If I ask myself, 'Do I feel the industry should be self-confident about recreating that trust through time?' I do feel that, but it starts by saying sorry. "It starts by admitting things went wrong."
He said he hoped his own bank was one of those in which customers still had trust. But he went on: "If you look at the industry as a whole, if I speak as a member of the industry rather than as chief executive of Barclays, I absolutely have to say we should share our portion of responsibility."
Our correspondent said Mr Varley was not the first senior banker to admit failings. In November, Royal Bank of Scotland chairman Sir Tom McKillop said he was "profoundly sorry" for his company's financial difficulties.
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