Singaporeans who have CPF accounts may be less pushed with investment products.
Singaporeans generally do not have a lot of cash flow to invest. Their main source of investible funds tend to be their CPF ordinary accounts. And it is these funds that are often preyed upon by financial advisers.
According to the recent announcement that there will be a reduction in the sales charge for new purchases of CPFIS products from 3 per cent to 1.5 per cent from Oct 1. The sales charge will be removed entirely from Oct 1 next year.
The aim is to remove the incentive for financial advisers to sell products under CPFIS merely to earn more commissions..
Since 2007, financial advisers have been allowed to levy a sales charge of up to 3 per cent for investment-linked insurance policies and unit trusts offered under the CPFIS.
Wrapped Fees will also be reduced