A COUPLE of years ago, the life-insurance industry was hauled up for the misselling of investment-linked and other types of policies that created issues for policyholders.
At that time, the Monetary Authority of Singapore (MAS) mandated the industry to institute a financial-needs analysis form, which would help agents determine if a product was suitable for a client.
This form must be filled up, regardless of the type of insurance product being sold.
In additional, there is a free-look period of 14 days, during which policyholders can review the product they have bought and decide whether it is suitable for his or her needs.
Now there are investors - many who are retirees - complaining about being misled by financial institutions which sold them complex, investment- linked financial products.
Moving forward, MAS should also mandate the banking industry to institute a similar checklist which potential buyers of complex financial products should fill up.
Banks must help determine the suitability of such products so that the interests of clients, especially those who are less investment- savvy or older, can be protected.
