CCS Annual Report 2015-2016

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CCS FINES 10 FINANCIAL
ADVISERS
FINANCE | INVESTIGATION
Case Team Members:
Kong Weng Loong
Edmund Lam
Cindy Chang
Jaime Pang
Tan Hi Lin
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.
From2May 2013 to 3May 2013, Financial
Alliance continually pressurised
iFAST to withdraw its Fundsupermart
Offer. Two other financial advisers
(IPP and PIAS) who were copied in
the communications from Financial
Alliance to iFAST also declared their
suppor t to Financial Alliance and
contacted iFAST directly to contribute
to the efforts. This resulted in iFAST
withdrawing the Fundsupermart Offer
in the afternoon of 3 May 2013.
iFAST only reintroduced a new
offer for life insurance products on
in August 2015.
Ten financial advisers (collectively
referred to as the “Par ties”) in
Singapore were found to have engaged
in an anti-competitive agreement. They
pressurised their competitor, iFAST
Financial Pte Ltd (“iFAST”), to withdraw
its offer of a 50% commission rebate
on competing life insurance products
on the website
(“Fundsupermart Offer”).
On 30 April 2013, iFAST launched a
Fundsupermart Offer, which presented
purchasers of life insurance policies with
a 50%commission rebate, allowing them
to enjoy great cost savings. Just a few
days later, on 3 May 2013, this lucrative
offer was withdrawn.
Investigations commenced after CCS
noticed media reports which suggested
that iFAST withdrew the Fundsupermart
Offer due to unhappiness in the industry.
A complainant also directed such amedia
report to CCS.
The investigations revealed that
on 2 May 2013, a group of financial
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GUIDING YOU TO NEW HEIGHTS
CCS ANNUAL REPORT 2015-2016