No quota for FA job

[wdblazer]

Which financial firm in singapore does not impose a monthly quota on their FA? I am thinking of being a IFA while I am still pursing my degree, sell cross products instead of just insurances. I don't mind being 100% commission based, but I don't like the idea of having a quota as I felt it kinda push us to do more sales instead of really planning for the client.

 

[Kheetat]

Which financial firm in singapore does not impose a monthly quota on their FA? I am thinking of being a IFA while I am still pursing my degree, sell cross products instead of just insurances. I don't mind being 100% commission based, but I don't like the idea of having a quota as I felt it kinda push us to do more sales instead of really planning for the client.

Im not sure about which IFA has no quota, but I do understand that most organisation in IFA does not have any quota. It is more about the organisation than the IFA.

My FA does not have quota for me too, even though I'm tied.

 

[wdblazer]

I see, what are the IFA firms in singapore? I have only heard of IPP and Philips, IPP seems like a pretty good place to join.

 

[HandsTied]

Do take note of the difference between IFA and FA.

FA simply stands for Financial Adviser. IPP is an FA, and not an IFA. The term "Independent" in IFA is actually a regulated word, and there are requirements to be fulfilled for the firm to use it. One of the conditions is that the firm cannot be getting special treatment/remuneration from a single insurer.

In any case, I've visited Finexis, IPP, PIAS, Financial Alliance and Promiseland. Different FA firms have different practices such as their remuneration systems, vesting rights, corporate structure and culture etc. PM me if you want my opinion.

 

[vtecXx]

Do take note of the difference between IFA and FA.

FA simply stands for Financial Adviser. IPP is an FA, and not an IFA. The term "Independent" in IFA is actually a regulated word, and there are requirements to be fulfilled for the firm to use it. One of the conditions is that the firm cannot be getting special treatment/remuneration from a single insurer.

In any case, I've visited Finexis, IPP, PIAS, Financial Alliance and Promiseland. Different FA firms have different practices such as their remuneration systems, vesting rights, corporate structure and culture etc. PM me if you want my opinion.

what are your views from IPP?

i might be engaging their services soon as i spoke to this knowledgeable FA who i find very reliable

 

[p4zl23]

The question here is how "independent" is it? Surely there are so many different products and so many different companies. Is every single one of them renumerate the FA in the same way? Is there not a slight difference to the person who sells the product renumerated? I don't think it is possible? Can someone enlighten?


And also, it cannot be that someone who put in $1000 and someone who put in $100, the person earn the same comm? Surely the comm is differnet somewhat. So I dont think it can be totally "independent" FA that really puts the customer's well-being into priority.

 

[wdblazer]

The question here is how "independent" is it? Surely there are so many different products and so many different companies. Is every single one of them renumerate the FA in the same way? Is there not a slight difference to the person who sells the product renumerated? I don't think it is possible? Can someone enlighten?


And also, it cannot be that someone who put in $1000 and someone who put in $100, the person earn the same comm? Surely the comm is differnet somewhat. So I dont think it can be totally "independent" FA that really puts the customer's well-being into priority.

From what I know, IFA earn commission and the best policy for client does not equal to the best commission pay for the IFA, hence the needs to have regulation for the use of the word IFA, else the agent will be hard selling the policy that give the most commission or benefit to himself instead of the client.

 

[HandsTied]

The question here is how "independent" is it? Surely there are so many different products and so many different companies. Is every single one of them renumerate the FA in the same way? Is there not a slight difference to the person who sells the product renumerated? I don't think it is possible? Can someone enlighten?


And also, it cannot be that someone who put in $1000 and someone who put in $100, the person earn the same comm? Surely the comm is differnet somewhat. So I dont think it can be totally "independent" FA that really puts the customer's well-being into priority.

Yes, different products remunerate differently. Thus, Independent FAs are required to justify their recommendations.

In any case, the most important thing is the financial planner himself. If he is ethical and knowledgeable, and works in the interest of his client, being in an IFA gives him the best ability to offer better value for his clients. In a tied environment, this ability is greatly limited by his company since no single company can boast the best or most suitable products for every product class required by an individual. In a non-independent FA firm, this ability may be limited by inducement to sell certain products over others, be it by monetary incentives or sales pressure.

In short, IFA does not guarantee that the planner is truly "independent" (he may be thinking of his best interest), but an IFA allows the planner to think of his client's best interests.

 

[HandsTied]

what are your views from IPP?

i might be engaging their services soon as i spoke to this knowledgeable FA who i find very reliable

I already PMed you my recommendations the other time - it's up to you whether or not to take up my suggestions. Besides, this is a topic about which firm to join, not which company's representative to engage. It's covered in the other topic.

 

[piggyming]

is there a sales job tht has no quota or company's profit target?

 

[Raider04]

is there a sales job tht has no quota or company's profit target?

Probably a non-profit organisation.

 

[Kheetat]

is there a sales job tht has no quota or company's profit target?

my place. =)

 

[piggyming]

my place. =)

den how ur company survive sia?

 

[HandsTied]

den how ur company survive sia?

In fact, most FAs don't really have quotas. They are almost all commission-based so they can afford to recruit many many people. Those who can sell - great. Those who can't will just leave on their own, often after selling policies to their friends and family. Don't need quotas at all actually.

 

[Kheetat]

den how ur company survive sia?

Don't have quota doesn't mean that no one will work. If there are no activity for a period of time, then they will be asked to leave.

 

[sanzhu]

No free lunch in this world

There's no free lunch in this world.

No quota means no lunch.

got lunch means need quota.

Sg is a profit based economy.

If there is no quota, why they wanna keep u?

unless they want something out from u....

 

[RaPtOrZ]

the only quota is to maintain the license of being an FA, don't know about other companies, but great eastern is 8k/annum of commision to maintain the license. I don't want to discuss the difference between IFA and tied agency but if you want to expose yourself to the different cultures of the different agencies in financial institutions before making a decision, pm me, we can discuss further.

 

[matchy]

is it going to be ur life long job?

 

[jgyy1990]

scurly their quota is for you to be in mdrt

 

[killer]

I believe the 8k quota is not just for the company, but also for MAS too, for contract maintenance for the company and to justify as a practicing adviser. Anyway, your agency can write in to say why you can't reach the 8k FYC and extend 2-3years. Not sure they have change the regulations now as I quit early last year.

Anyway, if your doing this fulltime and don't reach 8k commission after 2nd year, a bit hard to put food on the table.