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.
Saturday, December 20, 2008
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.
The Disadvantages of an Elite Education
Contributed by Ho Cheow Seng
Our best universities have forgotten that the reason they exist is to make minds, not careers.
By William Deresiewicz
Our best universities have forgotten that the reason they exist is to make minds, not careers.
By William Deresiewicz
Survey: DBS Schroder LiveSure 2025 fund
If you wish to join Colin Ho in opposing the change to the fund and to reject the three options, take part in this survey:
http://www.surveymonkey.com/s.aspx?sm=7adJB4Ub4k7OqUE8YLkzkg_3d_3d
http://www.surveymonkey.com/s.aspx?sm=7adJB4Ub4k7OqUE8YLkzkg_3d_3d
Survey: Vista Plan from Zurich
If you have bought the Vista plan from Zurich and have not been properly advised about this investment plan, please take part in this survey:
http://www.surveymonkey.com/s.aspx?sm=CAseR9wBBoKnR9o_2bzWa8PQ_3d_3d
http://www.surveymonkey.com/s.aspx?sm=CAseR9wBBoKnR9o_2bzWa8PQ_3d_3d
An adviser's view about the V plan
Dear Mr. Tan,
Our company allows commission to be paid annualised upfront. For instance, if the client pays a cheque for the first month's premium of $3,200, our company will receive around $40,000 in commission. It's then split between company and advisor. That's why many advisors are selling this plan.
They sell it as investment. But the clients never realise that they for a contract of say 25 years, they are not able to surrender it in 3, 5 or 7 years. They will be penalised heavily.
But I believe the biggest con job of this is that they prey on the greed of people. The reason why advisors can sell big premiums and long tenure is because of the so-called 'bonus' allocation. The longer the term, the higher the 'bonus'. Last time the 'bonus' was 62.5%, now they even up it to 87.5%.
The clients got carried away by their greed. No doubt the 'bonus' is 87.5%, but it's only nominal. The clients thought they could immediately cash out 87.5% of gain from their first year of investment. But they forgot that this is an insurance contract, and they need to 'finish' the whole term to avoid heavy penalty. But sadly, once they got into this plan, they are already in for a huge loss and a bleak future.
Many people who bought this won't be able to 'finish' the plan, The insurer understands this. This is a win-win for the insurer and the advisors, but a BIG lose-lose for the clients and their families.
As this plan is only being distributed in Singapore for 3 years or so, I can expect more news of people surrendering, especially in this tough economic environment.
The insurer even allows premium to be paid using credit card. I heard of quite a number of people surrendering, but chose to keep quite.
Our company allows commission to be paid annualised upfront. For instance, if the client pays a cheque for the first month's premium of $3,200, our company will receive around $40,000 in commission. It's then split between company and advisor. That's why many advisors are selling this plan.
They sell it as investment. But the clients never realise that they for a contract of say 25 years, they are not able to surrender it in 3, 5 or 7 years. They will be penalised heavily.
But I believe the biggest con job of this is that they prey on the greed of people. The reason why advisors can sell big premiums and long tenure is because of the so-called 'bonus' allocation. The longer the term, the higher the 'bonus'. Last time the 'bonus' was 62.5%, now they even up it to 87.5%.
The clients got carried away by their greed. No doubt the 'bonus' is 87.5%, but it's only nominal. The clients thought they could immediately cash out 87.5% of gain from their first year of investment. But they forgot that this is an insurance contract, and they need to 'finish' the whole term to avoid heavy penalty. But sadly, once they got into this plan, they are already in for a huge loss and a bleak future.
Many people who bought this won't be able to 'finish' the plan, The insurer understands this. This is a win-win for the insurer and the advisors, but a BIG lose-lose for the clients and their families.
As this plan is only being distributed in Singapore for 3 years or so, I can expect more news of people surrendering, especially in this tough economic environment.
The insurer even allows premium to be paid using credit card. I heard of quite a number of people surrendering, but chose to keep quite.
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