international advisor expert investor forum kl

International Advisor Expert Investor Forum KL

Malaysian IFAs should switch to fee for service - experts

expertforumFinancial advisers in Malaysia should not wait for regulators to replace commissions with fees for service, but follow the global trend favouring such arrangements, according to panellists at s recent Expert Investment Forum in Kuala Lumpur.

However, panellists at the discussion on the future of the advisory industry in Malaysia were uncertain on how long such a change in remuneration models might take.

Simon Cook - Managing Director of Intelligent Investments
"It's matter of when, not if fee-based advice would become the norm. It's in the interests of clients, people want to know where the motivation for the advice is coming from. Intelligent Investments has already switched from commission to fees for its advice."

Stuart Williamson - Chief Executive of Montpelier
"Foreign countries are setting trends towards fees not the Labuan Financial Service Authority. If you look at the UK, or Europe or places like Hong Kong, Singapore, Australia, they're going down this route. If you take examples of companies like AES in Abu Dhabi, they've basically got rid of the whole life insurance model, which is already twenty years out of date, and they've gone down the pure custody route – you charge a fee at the front end, and you don't have any lock-ins. That is the future, and that is the way we should be going as an industry, and not waiting for the LFSA or other regulators".

Stuart Williamson Montpelier
Stuart Williamson - Chief Executive of Montpelier

Stuart Yeomans - Chief Executive of the Farringdon Group
"I thought the Labuan Financial Services Authority was only taking “baby steps” to widen and strengthen regulation, and agreed that changes were being driven by the industry. I know there are a couple of companies that are taking a fee-based approach. I think that's a good thing for the industry. I didn't think LFSA will begoing to shake up the industry by insisting on fee-based remuneration soon. “Never say 'never', but I don't think it's going to happen, certainly in the next three to five years.”

Guy Medcraft - Regional Director for Asia at Hansard International
"The regulators do really have their teeth into what we do – who we do business with, our terms of business, how we operate and who we have contracts with. I am worried that regulators do not completely understand the difference between protection and investment products."

International Adviser Expert Investor Forum Panel Speakers
From Left to Right - Tom Porter, Stuart Yeomans, Simon Cook, Guy Medcraft and Stuart Williamson

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