Consumers protected when financial advisers switch firms

The recent news about the movement of financial advisers within the life insurance industry has been of interest to many.

The Life Insurance Association, Singapore (LIA Singapore) would like to assure policyholders and consumers that their interests are well protected.

There are guidelines in place to safeguard their interests should financial advisers choose to move to another firm.

If an adviser leaves, the insurer assigns another adviser to look after the policyholder, who is notified of the change.

Activities of the migrated adviser are closely monitored by the former firm and new firm, to detect and manage any replacements of policies without a proper basis.

Further, all financial advisers are subject to the Balanced Scorecard regulatory framework.

Improper advisories carried out can be picked up during such quarterly audits. A financial penalty will apply to advisers with poor grades.

The LIA, in consultation with the Monetary Authority of Singapore, is working to strengthen the guidelines on recruitment practices.

Pauline Lim (Ms)

Executive Director

Life Insurance Association Singapore (LIA Singapore)

A version of this article appeared in the print edition of The Straits Times on October 13, 2017, with the headline 'Consumers protected when financial advisers switch firms'. Print Edition | Subscribe