The updated guidance will specify the number of months during which migrated agents must be accompanied at client meetings by managers, sources told local newspaper Straits Times.
This is intended to address concerns about potential mis-selling or the churning of policies by agents who are under pressure to meet sales targets at their new firms.
Mass exodus
The announcement follows the mass migration of around 300 advisers from Great Eastern to new advisory business AIA Financial Advisers. The exodus has seen GE lose about a tenth of its advisory staff.
The deal is understood to be worth around S$100m (£54.9m, $74.2m, €62.2m). It includes, however, a five-year bond period during which any financial incentives can be clawed back is sales targets are not met.
The chief executive of Great Eastern Holdings, Khor Hock Seng, warned that the mass poaching of its agents, “could be detrimental to customers’ interests in the long term”, the newspaper reported.
“We have expressed our concerns to the regulators and will continue to work with them to ensure that customers’ interests are protected at all times.”
Regulatory push back
The Monetary Authority of Singapore (Mas) warned that the large-scale movement of agents increases the risk that customers will be advised to unnecessarily switch products and could disrupt business operations.
It added that offering high sign-up bonuses and other financial incentives may drive up industry costs.
“LIA will be working on some parameters on movement of representatives and Mas will be monitoring developments closely,” the regulator said.
