Ethos Wealth Planners

Dear Potential advisers,

The Ethos Wealth Planners is a group within Promiseland Independent Pte Ltd. Ethos Wealth Planners is headed by myself. You are reading this letter probably because you are keen to join the financial advisory industry.

Almost all firms consider  the financial adviser as a sales person. It does not matter whether you are from the insurance companies, banks, security houses or one of those “independent” financial advisory firms. On the other hand, many clients assume that the financial adviser is a professional. The difference in expectation is detriment to the interest of the clients and it is of no surprised that many clients’ interest are harmed.

I am still a practising practitioner and many clients have engaged me to advise them. I have found that many financial advisers have harmed them so significantly that it often results in delay in retirement due to purchase of unsuitable products to being underinsured because of being persuaded to buy products of low sum assured (because it pays higher commission). The worst part is that many financial advisers do not know how much harm they have caused to their clients because they have been trained to focus on sales of products rather than on needs of their clients.

In my interview with financial advisers from other firms, the common complain I hear is that their trainings are often focus on product benefits and how to position Unique Selling Points (USP) to their prospects. But there is little focus on how to do needs analysis which is required for recommending products and services that match clients’ needs.

I would like to meet you if you see yourself in the same predicament as above. Under my team, you cannot be assured of hitting the Million Dollar Round Table (MDRT) simply because exceeding a certain level of commission is never our target. I am not interested whether you sold a term insurance or an ILP. I am more interested that your recommendations have benefited your clients. If you want to earn a large income, this place is not for you. You will do better in firms and agencies that push products to the detriment of their clients. On the other hand, if you want to help others, this place is for you.

The following is a table summarising the different between Ethos Wealth Planners and others:

All new advisers under the Ethos Wealth Planners will be trained on Foundation Financial Planning which is a needs-based approach for traditional life insurance, disability income, critical illnesses, term insurance and medical insurance. They will also be taught on how to recommend regular saving plans using unit trusts. “Foundation Financial Planning” is appropriate for majority of clients. All new advisers are expected to be eventually able to offer this service with high confidence within 12 months on their own to any clients who want this service. In a sense, “Foundation Financial Planning” is a basic service that all advisers are expected to offer with minimal help. Of course, the on-going weekly trainings provided by the firm would cover these products and thus, advisers are always kept abreast of the latest changes in the industry related to these products and services.

A common question that I am asked is relating to where to find clients? I expect all advisers to be eventually be able to find their own clients pertaining to Foundation Financial Planning. They should start with their “warm markets” and use referrals system and assistance from Center of Influence (COI) to reach out to cold markets. The firm is able to officially administer the Introducer scheme so that your COIs are rewarded for referring clients  to you. The Introducer scheme is subjected to MAS rules on such schemes. However, there are also enquires from potential clients through this website. These enquiries will be channelled to the appropriate advisers depending on the level of skill set required and kind of fees these potential clients are willing to pay. This website is being actively marketed and is Search Engine Optimised (SEO) so that it can be easily found on the Internet. The number of enquiries from this website is not trivial. Advisers are also permitted to post blogs on this website sharing their experiences and knowledge so as to increase their level of profile further.

I strongly encouraged all advisers under Ethos Wealth Planners to select at least 2 specialisation after 1 year in the firm. For example, an adviser who meets a prospects who need assistance in setting up a Trust, can work as a team with another adviser who specialises in estate planning. In this manner, the client’s interest is met.  When advisers start to specialised in the fields they like best, they will be able to offer their specialised services to other advisers’ own clients via a co-broking arrangement. Obviously, these are warm markets and therefore much easier compared to cold markets.

Some other examples of specialisation are (but not limited to):

1. Investments:
   • Portfolio management;
   • Alternative products for Accredited Investors; and
   • Usage of open architecture platforms.
2. Jumbo insurance such as Universal Life.
3. Group employment benefits for SME and MNC.
4. General insurance such as commercial fleets, group travel, non-package for corporate clients, industrial all risks, business interruption, theft, plate glass, money, public liability, fidelity guarantee, marine cargo, professional indemnity, medical malpractice, directors & officers liability, contractors’ all risks, erection all risks, etc.
5. Estate planning - Wills, Trusts, Lasting Power of Attorney, Buy-Sell Agreement, Keyman, etc.
6. Comprehensive financial planning. Analysis of individual clients’ entire financial well being for fees.

I expect that on a long-term basis, two-thirds of an adviser’s remuneration should come from their specialised fields.

If you are keen to join my team of advisers, feel free to contact us for a discussion.

Wilfred Ling
FA Associate Director
Promiseland Independent Pte Ltd