Worldwide Commission Disclosure Could Sound Death Knell for Isle of Man Life Companies

Death-001.jpgWhilst worldwide commission disclosure for life companies based in the Isle of Man such as Old Mutual International, Friends Provident International, and RL360 are two years away, life companies are beginning to brace themselves for a major slump in sales once the changes come into effect in January 2019. Some have argued the regulatory changes may sound the final death knell for life companies, which sought to delay commission disclosure that were intended to come into force in January 2018.
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Intelligent Investments – 2017 Best Practice in Offshore Award

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Intelligent Investments is proud to announce that for the second consecutive year, we have been shortlisted for Best-Practice in Offshore Award in this year’s International Investment International Fund & Product Awards 2017. Learn more

Should You Trust Your Hard Earned Investment or Pension to a Robot?

 

These robots, of course, aren’t like those you see in films. Instead they are capable of providing investment advice usually delivered by a human adviser sitting behind a desk — and for a lot less money.

So-called ‘robo-advisers’ — which assemble investment portfolios after an investor answers a series of questions regarding their expectation of a return and tolerance to risk — have been widely praised for their easy, low-cost approach to investing. These automated services have quickly amassed USD53 billion under management in just a handful of years in the US alone, according to estimates by Aite Group.

Should you consider using a robo-adviser, and could your current adviser not only be missing out on performance but significantly hurting your financial health?

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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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