Some RMs, for the sake of money, will promise their customers all the positives and hide all the negatives. For example, the particular bank product states that the principle sum of money invested is protected. However, there is a clause which states that only the first $5,000 invested is protected. So if a customer invests $10,000 (and is not aware of this clause), and if market conditions are good and positive gains are made, then there is no issue. On the other hand, if the investment turns sour because of bad market conditions, and the principle sum of $10,000 loses $7,000 of its value, the customer will lose $2,000.
In the long run, this isn't healthy because once customers find out the negatives, some will lodge a complaint with the bank and/or with the relevant authorities (eg MAS, CASE).
The RM will not only get himself/herself into trouble but will also tarnish the reputaion of the bank he/she works for.
So in my humble opinion, please refrain from doing the above for the sake of a few thousand dollars of extra commission. It is a lose-lose-lose situation for the customer, the bank and the RM involved.
2 comments:
like that got to read the fine prints properly but how to for us lay man to read all.
Thanks for the comments Anonymous. Well, it's hard for lay man to read everything, so a trusted banker is the best choice. Someone who you know will not get you into trouble. An honest and trustworthy banker.
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