Personal Finance
Clashes of Interests Between You and Your Financial Adviser
By Sethisfy  •  June 29, 2011
In my opinion, there are a few major clashes of interests between the you, the client, and your financial adviser who is making a living out of his job. It is only by identifying and reducing these clashes of interests can there be a mutually beneficial relationship between an adviser and a client. The first major clash of interest is the remuneration system. Most financial advisers in Singapore still work on commissions. This is due to commissions being a longstanding practice as well as most consumers not wanting to pay an upfront fee for proper financial advice, never mind the fact that most end up paying through their noses in commissions in form of hidden charges and fees. Financial products that are good for the client more often than not pay the financial adviser low commissions, and products lucrative for the adviser are usually lousy for the client. It’s a ......
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By Sethisfy
As an adult, I’ve been through many ups and downs in my career path and personal finance journey, not unlike many Singaporeans. From my years as a tied insurance agent turned independent financial adviser, I realised that there are very few sources of proper, unbiased financial advice for working adults to access. Worse, self-styled “financial consultants” are selling products like savings plans and ILPs to the detriment of the clients whose interests they were supposed to serve.

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