Singapore Financial Advisors Fined For Anti-Competitive Behaviour

Tom Burroughes

21 March 2016

The Singapore regulator in charge of competition has punished 10 financial advisors nearly S$1 million ($738 million) for various breaches, the first time such actions have been taken in the sector.

The advisors engaged in an anti-competitive agreement in 2013 to make a competitor, iFast Financial, withdraw its offer of a 50 per cent commission rebate on competing life insurance products on the Fundsupermart.com website.

iFast is the parent of online unit trust distributor Fundsupermart.

The 10 companies, which have been hit with penalties totalling $$909,302, are: Avallis Financial (previously known as First Principal Financial); Cornerstone Planners; Financial Alliance; Frontier Wealth Management; IPP Financial Advisers; JPARA Solutions; Professional Investment Advisory Services (PIAS); Promiseland Independent; Ray Alliance Financial Advisers; and Wynnes Financial Advisers.

“On 30 April 2013, iFAST launched its Fundsupermart offer, which allowed purchasers of life insurance policies to enjoy cost savings from a 50 per cent commission rebate. A few days later, on 3 May 2013, iFAST withdrew its Fundsupermart offer,” the Competition Commision of Singapore said in a statement.

The CCS probe started after the watchdog saw media reports which suggested that iFAST withdrew the Fundsupermart offer due to unhappiness in the industry.

“CCS’s investigation revealed that on 2 May 2013, a group of financial advisers, namely Avallis, Cornerstone, Financial Alliance, Frontier, JPARA, Promiseland, RAY and WYNNES met at a management committee meeting of the Association of Financial Advisers (Singapore) (AFA). During this meeting, the Fundsupermart offer was discussed and Financial Alliance was appointed as their representative to contact and pressurise iFAST into withdrawing the Fundsupermart offer,” it said.

“From 2 May 2013 to 3 May 2013, Financial Alliance continually pressurised iFast to withdraw its Fundsupermart offer,” it continued.