The financial advisory industry in Singapore is currently undergoing a major review that has many stakeholders having sleepless nights due to the potentially “catastrophic” changes. While the intentions are good, the new regulations may just generate exact opposite end results to certain goals of the review.

Rumour mills have it that new criteria and guidelines regarding the type of advice given will be implemented. Advisers must hit certain minimum quotas for at least partial advice. If not, commissions will be reduced. Indirectly, this would mean more paperwork for advisers and companies.

More paperwork would mean less time for other things, including meeting new prospects and closing new sales. This, compounded by the new training requirements for investments in addition to those already mandated for life and general insurance would leave many strapped for time.

To justify the time spent doing paperwork and compliance, some may resort to pushing products with high commissions. Why sell a cheap ...