SINGAPORE - About 70 per cent of financial advisory representatives have passed Capital Markets and Financial Advisory Services Module 9A, a survey by the Monetary Authority of Singapore (MAS) found.
Module 9A is an updated module on life insurance and investment-linked policies administered by the Singapore College of Insurance (SCI).
As of January 2012, MAS requires all representatives providing advice on or arranging investment- linked policies to pass the module, with the aim of raising financial advisory standards for the benefit of clients across the board.
Representatives have until June 30 to pass Module 9A, failing which they must confine their financial advisory activities to non-complex life insurance products, such as term policies, whole life plans and endowment plans.
Conducted in February, the survey covered 24 financial institutions, comprising large life insurance companies, banks, capital markets services licence holders, and licensed financial advisers.
Of the 17,540 representatives surveyed, 12,251 had passed Module 9A; 1,537, or 9 per cent, had attempted the module but failed; and 3,752, or 21 per cent, had not yet attempted the module.
MAS assistant managing director Lee Chuan Teck said the overall pass rate was heartening. However, a breakdown of the results by industry revealed that only 66 per cent of insurers and 60 per cent of licensed financial advisers (LFAs) and capital markets services licence holders had passed.
The Association of Financial Advisers in Singapore expressed concern about the poor performance of LFAs.