defitnitions
What is the FA privilege
ask for sensitive financial info from a stranger
characteristic of a proffesional
mastery
relianility
self interest
loyalty
who bears the risk of par life
client bear risk of non guaranteed element ( inv)
example of ethical but not compliant
offer new services to clients but cant due to company regulations
fair dealing guidelines
Promotre fair dealing in handling customers
focus on board and senior management
5 fair dealing outcomes
principle of objectivity
conflict of interest
manifestation of COI
CB I CANT SELL
Churning
Biasness
Involuntary cross-selling
what type of asset is CPF
investment asset
methods to deal with conflict
find an appropriate solution
empathize and apologize
determine the facts
Outcome 1 what shuld board and senior management address
Devise a clear strategy to achieve fair dealing outcomes
Align organisational policies and practices
monitor the effectiveness of the strat and policies
Whistle blowers to report on misconduct
fiduciary standard
CLOG
care, loyalty, obedience and Good Faith
3 sutability standard (rule based)
KYC
Need analysis
complete documentation and record keeping
how to close your recommendation for ILPs
PHS Product highlight sheet
net worth =?
total assets - total liabilities
guidance for pre transaction checks by supervisors
to selected clients oni
more than or equals to 62 years old
not proficient in English
below GCE N & Os lvl
for selected rep (bsc grade less or equal than b)
all client need call back
lasting power of attorney
make decision if he lose mental capacity
Fair dealings (3 important)
FYI 5 total
clear roles and resposibility
transparency
managing COI
what is the standard multiple of annual income for CI coverage
4x
general principles to decide when client reviews are needed
clients personal circumstances
external developments
products purchased
product development
changes to interest in listed specified products
7 days and retain 5 years
what is the only type of emergency fund bolded in red
SSBs (singapore savings bond)
3 ethical pitfalls
misrepresentation
Sell unsuitable products
fail to recognise COI
what % of your income should you invest after -CPF
10%
what type of client is it highly recommended to be accompanied during KYC
your parents O_O
fit and proper criteria
1) Honesty, integrity and reputation
- no past offences or prohibition order
2) competence and capability
- satisfactory past performance
3) Financial soundness
-not bankrupt