property and casualty license difficulty
rebating life insurance Historically, rebating of commissions has been in the bad press because of the elements of inducement. I consider rebating of commissions as giving in to the 'dark side of the force'. Most clients are unaware of this dynamics of the 'dark side' because they will always select the cheapest route. Therefore, the onus is on the adviser to do the right thing. Unfortunately, it is difficult to decouple rebate and inducement. In all cases, the line is blurred. My advice to any company or advisers to be very careful especially if not charging any advisory fee and neither offering any comprehensive financial plan. Doing a Type 1 or 2 KYC is not a comprehensive financial plan. In fact, according to MAS' mystery shopper exercise, 90% of advisers did some fact find but only 28% made suitable recommendations. A professional must not exploit known weaknesses of clients by using commissions rebates to induce a purchase. A professional must do...