Old Mutual Int’l ‘Taking Legal Action’ Against Leonteq Over Commissions

old_mutual_venta_latamOld Mutual International, the international investment products arm of Old Mutual Wealth, is “taking legal action” against Zurich-based Leonteq Securities AG “and related parties”, for “the making of false statements” in connection with the levels of commission paid to advisers on Leonteq structured products.

“Had the true level of commission been disclosed, the products would not have passed Old Mutual International’s criteria, and no investments would have been made,” OMI said in a statement. Learn more

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Monetary Authority of Singapore delays commission cap but shouldn’t it be doing more?

The Monetary Authority of Singapore has delayed the 55% cap on commission financial advisers receive from the sale of life insurance policies a year after the industry asked for more time to implement the changes.

The remaining 45% will be paid out over the following five years or the remaining premium payment years, whichever timespan is shorter.

A spokeswoman from the regulator said: “Arising from industry feedback that it needs more time to implement the spreading and capping of commissions (SCC) rules, the SCC requirements will take effect on 1 Jan 2017.”

However, in the current low growth environment, isn’t it about time that investments for expats and international clients, especially in more regulated offshore jurisdictions, such as Singapore, and Hong Kong did away with upfront commissions paid to the ‘adviser’, with hidden charges and redemption penalties to recoup the commission paid? At Intelligent Investments, we certainly believe so.

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