Understand what you have been sold

This bancassurance and financial product sold through the banks, need more supervision.

I have written before, go to the bank with your older relatives or educate them on the need to understand what is sold to them.

If mis-selling is to be probed further, other products will also surfaced.

Many years back, a client's mother age 56 walked into a bank and was sold Anticipated Endowment without her knowing it is an insurance product with phrase "auntie, u put $3000 a year and every three years u get $1000, isn't this better than interest?" Auntie signed up and on year two her daughter felt something is wrong and asked me, and I told her it could be an anticipated endowment, and true enough it was. How can a housewife age 56 be able to pay $3000 a year for next 15 years? She then realised she was sold an insurance product just like that. She ended up having the policy lapsed as she cannot afford the second year premium.

Just 3 weeks ago, my 57 year old client told me the same story, she went to U.. Bank and wanted to renew her FD, and was sold a 10 year endowment with 5 years limited premium , and premium is $10,000+ a year. When premium due notice arrive this month, she was caught, and asked me how she can afford $10K a year forward? I advised her to seek FIDREC since U.. Bank is not solving the problem for her, keep delaying.

Today, in the name of independent financial advice, some are reviewing policies of clients and in the name of financial planning and analysis are advising replacing of policies subtlely. Some riders may not be appropriate, but definitely not plans that have been inforce for a long time, even CPFIS Endowment plan has been advised by so call, Financial Advisor to be terminated, and reinvest to other plans. For whose interest when such policies are being churned?

These are but just some of the stories we heard every now and then, Mini Bond and High Notes are just the high points of events.

More has been misled but not knowing how to seek re-dress and have been suffering in silence by bancassurance and banks selling financial products.

My bank relationship manager called me for MiniBonds too, I was caught in a few restructured products before, don't laugh, you can see we ourselves can also be misled by the relationship managers. I have asked specific questions, but answer were pack of lies until I discovered too late from the fine prints, by then, they argue with me that it was not said and the fine prints stated it, in relation to 100%principle redemption if I terminate in between. It was really a lie, and I thought I can trust them then.

MiniBonds was recommended to me as bonds, but my question to her was how it can be 5.1% when coupon rate for most bonds are about 3%.

This time round, I was fortunate that I did not place money in the MiniBonds as I remembered the lies they told me before.

All of us have to bear in mind to plan with the interest of our client at heart. Especially for the more elderly. It is hard earned money that we should not hard earn from them. Recommend appropriate plan for the interest of policyholders.

I can only say, your sin will find you out.