Asked on 13 Feb 2020
Broker UOBKH sent me a letter stating:
"As you have indicated that you do not wish to receive advice from us...... you will therefore not be able to rely on Section 27 of Financial Advisers(Cap 110) to file a civil claim against us in the event that you suffer a loss"
Before buy or sell, we are made to sign waiver forms declaring that transactions were not advised by the adviser.
Financial Advisers Act (Cap 110) Section 27 https://sso.agc.gov.sg/Act/FAA2001#pr27
So called "financial advisors" or insurance agents' role is only to sell products and pocket the commissions
they are not responsible for your loss, period.
That only happens the client has failed the customer knowledge assement (CKA). Cause if you fail the CKA, then you are only able to select investment portfolios that the adviser recommended. However the option is opened to you in the event you feel that you can make better investment choices instead of what the adviser were to recommend. Thus that clause is added as during the proposal, the adviser should have mentioned it to you that you has stated that you have indicated that you do not wish to receive advise from us.
Of course sadly.. not all advisers will get back to their clients or do portfolio re-balancing per quarter as recommended... So that's why alot of people feel what you feel... because they have been put away after the deal is done... I hope that you will meet a better adviser along the way even though you have been burnt..
This clause is to cover their ass.
Without this clause, those who lost everything in the dbs minibonds saga and the hyflux collapse would be filing civil claims and sueing all the banks and brokers.
But with this clause, all they can do is go Hong Lim park and make noise.