Commission payable to the agent

Dear Mr Tan,

The illustration shows the Total Distribution cost, which comprises of several items.

I have been trying to get my sales person (a.k.a. financial planner) to disclose to me the commission rate that is paid to him, but it seems that his managers are unwilling to disclose such information to me.

Based on your past experience in the insurance field, is it common industry practice to only provide Total Distribution Cost in the benefit illustration?

I have also found this phrase from a website which mentioned the following:

" By law, insurance companies must reveal all costs and charges associated with the product you are buying. This includes, specifically, the distribution costs which include any commission the insurance company will pay to your adviser. These details are shown in the benefits illustration of your product."

Would you suggest that I consult MAS on this matter, since the website mentioned the phrase "by law", although so far I have not seen the details of their commission structure?

Again, thank you very much for your kind attention. My wife and I feel very much empowered by the insights you have shared in your blog.

REPLY:

I think that it is a good idea for you to consult MAS on this matter. Another organisation that you can address the matter, when it comes to a dispute, is FIDReC.