Introduction of Financial Advisers
The changing financial landscape and increasingly sophisticated requirements of Malaysian consumers call for higher standards of financial services in the country. In order to respond to the increased demand for complex financial products, the introduction of professional intermediaries such as Financial Advisers to enable Malaysians to obtain professional advice on wider options of financial products and services was an important recommendation of the Financial Sector Master plan. Financial Advisers will play an important role in providing holistic financial advisory services to the consumers, ranging from insurance protection, savings for education, retirement planning and investments for the future.
With the enactment of the Insurance (Amendment) Act 2005 (IA) and the Insurance (Amendment) Regulations 2005 recently, Bank Negara Malaysia wishes to announce that the regulatory framework is in place for the licensing of Financial Advisers. The salient features of the licensing requirements for Financial Advisers are as follows:-
The regulation of Financial Advisers would help to promote the orderly development of the financial planning industry. In addition to being a new distribution channel for the insurance industry, Financial Advisers offer consumers a wider range of financial products and act as one stop centre for financial planning. The introduction of Financial Advisers will enhance the market penetration of the life insurance industry, especially amongst upmarket consumers. Financial Advisers will also provide greater professionalism in the sale of life insurance products. The consumers can expect the licensed Financial Advisers to provide effective financial planning based on needs-based approach rather than merely product driven sales. Unlike the insurance agents, the Financial Advisers will not be tied to a particular product provider.
Those who are interested to obtain further information on the licensing requirements of Financial Advisers may contact Jabatan Pengawalan Insurans, Bank Negara Malaysia, at the telephone number 03-2698 8044 ext. 7845/8542 or visit the Bank's website at http://www.bnm.gov.my.
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