Tied Agent looking to switch to IFA

[MrTiedAgent]

Hi, im a tied agent with one of the local insurers. Used to work at the bank but left to start my own business(failed) 4 years ago. Back then my good friend whose my manager now needed headcount for her promotion so i helped her out and joined. Last year was technically my first year working here.

My first year was pretty decent, past business contacts, family connections, trader friends with 100k in their account but 0 insurance and generally working longer hours than your average person netted me 60-70k. (Bonus + Incentive included). This year im on track to match or better last year results which means my income will be 20-30% higher with trailers. Managers happy, familys happy, but im not.

I read a book recently and this question really started to mess with my head. Is withholding information equivalent to lying? To call yourself a financial advisor, banker, wealth planner or wadeva fancy term these days. U have to assume this person has some sort of Financial knowledge or background right? If thats the case, how can you recommend that endowment 1.9% IRR(lol its true), how can you not tell your client that coy C's H&S plan is cheaper and will save her 30k over her lifetime compared to yours? How can you not tell your client that other platforms offer a much lower sales charge on their unit trust? Are we working for the client or the insurer?


Anyways i met up with a friend from an IFA(tries to recruit me) and got to learn abit about their structure and platform. I was very impressed witht he range of products they carry from so many insurers/banks/fund houses. My head was just thinking of the amount of cases i couldnt close because client wanted something very specific or found a better price. I also couldnt sleep for 2 days when i played around the numbers and realised i could have saved my close friend's family 17k in premium if i had shown him company X's term plan. In this instance, had i known and not told him, would i be lying?


In any case, im seriously considering joining an IFA even with the financial loss that comes with me leaving my company. I was hoping there are some peeps here who went thru the process of leaving a tied agency and joininig an IFA who can share some advice.


1. Any initial difficulties that you faced?

2. How did your client take/react to the news?

3. How best to break the news to your clients.

4. Am i allowed to continue servicing my clients, where is the line drawn?

5. Apparently IFA agents get to keep a larger share of commission because lower manager/director's overriding?

6. Were you compensated for the loss of your trailers? Literally leaving 70-80k over the next 4-5 years.

7. I know about the toxicity of tied agencies, what are some that exisitings in IFAs?

8. I joined with only a private diploma, I have since completed ChFC. As the new regulations is A levels or Local diploma, will i be able to register with another FA?

 

[Mecisteus]

I value my conscience more than the money.

That's why I don't want to go to the insurance industry.

What's the difference with an IFA?

You will still be selling expensive insurance and investment products. The only difference is the range of products.

Clients can just buy cheaper products online.

If I am in your position, I will just stay put.

Don't forget you are "betraying" those clients that you have served. Then you want to jump ship.

 

[moejoseph]

Hi, im a tied agent with one of the local insurers. Used to work at the bank but left to start my own business(failed) 4 years ago. Back then my good friend whose my manager now needed headcount for her promotion so i helped her out and joined. Last year was technically my first year working here.

My first year was pretty decent, past business contacts, family connections, trader friends with 100k in their account but 0 insurance and generally working longer hours than your average person netted me 60-70k. (Bonus + Incentive included). This year im on track to match or better last year results which means my income will be 20-30% higher with trailers. Managers happy, familys happy, but im not.

I read a book recently and this question really started to mess with my head. Is withholding information equivalent to lying? To call yourself a financial advisor, banker, wealth planner or wadeva fancy term these days. U have to assume this person has some sort of Financial knowledge or background right? If thats the case, how can you recommend that endowment 1.9% IRR(lol its true), how can you not tell your client that coy C's H&S plan is cheaper and will save her 30k over her lifetime compared to yours? How can you not tell your client that other platforms offer a much lower sales charge on their unit trust? Are we working for the client or the insurer?


Anyways i met up with a friend from an IFA(tries to recruit me) and got to learn abit about their structure and platform. I was very impressed witht he range of products they carry from so many insurers/banks/fund houses. My head was just thinking of the amount of cases i couldnt close because client wanted something very specific or found a better price. I also couldnt sleep for 2 days when i played around the numbers and realised i could have saved my close friend's family 17k in premium if i had shown him company X's term plan. In this instance, had i known and not told him, would i be lying?


In any case, im seriously considering joining an IFA even with the financial loss that comes with me leaving my company. I was hoping there are some peeps here who went thru the process of leaving a tied agency and joininig an IFA who can share some advice.


1. Any initial difficulties that you faced?

2. How did your client take/react to the news?

3. How best to break the news to your clients.

4. Am i allowed to continue servicing my clients, where is the line drawn?

5. Apparently IFA agents get to keep a larger share of commission because lower manager/director's overriding?

6. Were you compensated for the loss of your trailers? Literally leaving 70-80k over the next 4-5 years.

7. I know about the toxicity of tied agencies, what are some that exisitings in IFAs?

8. I joined with only a private diploma, I have since completed ChFC. As the new regulations is A levels or Local diploma, will i be able to register with another FA?

No right or wrong answer. I am in a similar situation as u, except i was allowed to "sideline" in the industry while running my own business.

I see it as value-adding to my friends and biz partners who did not get any coverage at all. If u had not join this industry, they may still not get any coverage and if anything is to happen, it would have be worst for them.

As for whether to jump over to IFA, i can't give an exact yes or no. There are good and bad, and IFA does not get to sell all insurers' products as well. So there will still be other better products if u want ur clients to get the best out there.

For clients who trust u, they wouldn't care much about letting u earn a little more comm, or if the product is not as good, provided that u will be there for them when the need arises. It is like supporting someone who buy from Cold Storage than Sheng Shiong the similar products.

 

[BBCWatcher]

I agree. IFAs are really misnamed, and the regulators need to fix that. They're simply multi-carrier agents (MCAs) in Singapore.

You might want to look into the viability and opportunities to be a straight fee-based independent financial planner (IFP) or similar role. The ethical ideal, that should always keep you focused solely on your clients' interests, is that your compensation in no way varies based on what financial products and services your clients do or don't buy. There's no bias toward either action or inaction, and there's no product or provider bias either. No participation in a client's success either.

One idea that comes to mind is to offer a "Financial Second Opinion" (FSO) service. Clients can go shop around, online and offline, and listen to various sales pitches if they wish. But before they sign anything, if they have any doubts or concerns, they can/should come to you, pay a flat fee, and get an honest, unbiased, expert opinion about what they're being pitched and whether it's a good fit. If there's a reputable, ethical firm that offers this sort of "FSO" service, great.

Yet another market that I think is largely untapped is to work with major employers that hire foreign talent to provide unbiased, entirely client-focused financial advice to help them navigate Singapore's financial waters and match up with their financial needs and objectives. The employers would pay you and offer your service as an employee benefit, resulting in happier and more financially secure employees that learn from employee education forums (in the company locations), one-on-one "financial fitness" assessments, and so forth.

 

[xtwis7]

Coming from the tied agency background, some prospects really just like to name drop “IFAs”. I can only agree that they will be able to offer solutions from more than 1 company, but that doesn’t make them less biased than someone from a tied agency force.

At the end of the day, it’s all about the advice and not who you represent.

 

[Mecisteus]

You might want to look into the viability and opportunities to be a straight fee-based independent financial planner (IFP) or similar role.

Quite tough for a fee based advisory model to thrive here.

The general mindset is as long as one must pay a fee, then it is not worth.

 

[sanzhu]

Sex sells

U provide any other services online?

 

[Mr. Wood]

I agree. IFAs are really misnamed, and the regulators need to fix that. They're simply multi-carrier agents (MCAs) in Singapore.

+1 this

so call "independent" are oso going for the comms.

 

[Mr. Wood]

4. Am i allowed to continue servicing my clients, where is the line drawn?

hav u considered not leaving? but get to know other products frm other providers. and present the best solution to yr clients.
downside is dat the best offer may not be frm yr co and yr clients cannot buy frm u.
but i think pple will appreciate yr honesty and insights in the long run.

 

[moejoseph]

hav u considered not leaving? but get to know other products frm other providers. and present the best solution to yr clients.
downside is dat the best offer may not be frm yr co and yr clients cannot buy frm u.
but i think pple will appreciate yr honesty and insights in the long run.

Agree with Mr Wood. This is something i am currently working on, and partnering other agents on as well.

At least refer them to someone u feel is trustworthy

 

[MrTiedAgent]

Thanks for the response. Yes I have considered staying put. But being able to offer the most competitive plans and a wider range of financial products is really attractive. ie, 3 year endowment plans, more annuity options etc. Even though clients still choose to buy from you based on trust, we do have a responsibility to provide them with the best option. And if the best option is to refer to other agents, then why not be the one that offers the most products/companies? In any case, super bad experience referring clients to other FAs, ended up doing all the work and bearing the brunt of the blame even though I received no remuneration.

I should also mention that I intend to join a company that offers a wide range of products/companies. Not FAs like Aviva AFA or ManuLife etc
Anyone made the move from a tied agency to one of the few independent FAs out there? Mind if I PM?

 

[Mr. Wood]

I should also mention that I intend to join a company that offers a wide range of products/companies. Not FAs like Aviva AFA or ManuLife etc
Anyone made the move from a tied agency to one of the few independent FAs out there? Mind if I PM?

are u referring to the co F****** A******?
in bukit merah?

they claim to be "independent" and incentivised by commissions.
but they may try to make up through vol. so u may still be pressured to convince clients to switch to meet sales target even if clients alrdy hav sufficient coverage.

 

[Mr. Wood]

Agree with Mr Wood. This is something i am currently working on, and partnering other agents on as well.

At least refer them to someone u feel is trustworthy

are u recruiting?

 

[immortal86]

FA firm branching out to IFA next year.

Yes, there will be more choices for other plans which are better than from a single firm.

There's also plans which are more or less the same.

Definitely you can offer some plans which is more favorable to client.

Steep learning curve, from learning 1 single firm products to multiple firm. There's only so much products you can focus on, thus will be more incline to sell those you are more familiar with. Good thing is multiple insurer for you to clock your CPD, GI hours

another good point is UT which tied agency do not have, focus on the few better performing funds and charges is up to the agent unlike ILP. Flexibility is more than RMs in bank.

feel free to pm

 

[moejoseph]

are u recruiting?

Haha for?

Btw am curious, understand IFA cannot do roadshows, how do they prospect then? Mostly cold call?

Heard most IFA focus on warm, but there is only so much to tap on only

 

[Mr. Wood]

Haha for?

i was cheated by insurance agents.

thinking of how to create more awareness to the common pple. so dat they can make their own judgement. when things happen and complain to MAS, most often it is too late, money and time wasted.

so might as well join a insurance or finance co and get a license.
if i cannot win them, join them

 

[Mr. Wood]

Btw am curious, understand IFA cannot do roadshows, how do they prospect then? Mostly cold call?

Heard most IFA focus on warm, but there is only so much to tap on only

cannot roadshow meh? saw quite a few leh. or maybe anyhow set up nvr pay the shopping mall rental.

i know a few ifa team up with trading courses scammers. cross selling.
dats how i know few of these ifa, tested their services, and conclusion is the same - they only want to sell u more products.

 

[moejoseph]

i was cheated by insurance agents.

thinking of how to create more awareness to the common pple. so dat they can make their own judgement. when things happen and complain to MAS, most often it is too late, money and time wasted.

so might as well join a insurance or finance co and get a license.
if i cannot win them, join them

Haha i have an almost similar mindset as u. But sadly after i joined, i realise it is difficult to even reach out to the common ppl, as most will just siam knowing you are a FA. At most, i can only educate my family and friends, but a few of them got "cheated" into ILP way before that as well

But getting the license is not bad coz most insurers will provide lessons and subsidise the exam fees for basic papers. Have to pass at first time though, otherwise retake will be at own expenses haha

 

[moejoseph]

cannot roadshow meh? saw quite a few leh. or maybe anyhow set up nvr pay the shopping mall rental.

i know a few ifa team up with trading courses scammers. cross selling.
dats how i know few of these ifa, tested their services, and conclusion is the same - they only want to sell u more products.

I seldom see IFA roadshows outside (Not including Aviva and Manulife one though), or maybe my areas don't have.

 

[Del_Luna_moon]

I'm also one... Was supposed to go over ifa but now having second thoughts. Thinking of exiting the Industry or keep it while continue with current agency.