There was a letter in Straits Times Pushy sales even after Minibonds saga that a Chinese educated 66-year old man was pushed to buy an OAC insurance product when he went there to open a fixed deposit. Fortunately his son was there to “protect” him and prevented his father from buying the product. I thought MAS has already banned bank tellers from pushing product? Maybe I got it wrong?

Last week, I recommended three clients to open a fixed deposit with another bank (not affiliated with me in any way and not OCBC) because the interest rate provided was very high and that it is suitable for my clients’ requirement of capital preservation. I hope I did not send these three clients to the lion’s den. Maybe I should insist my clients show me proof that they have indeed open a fixed deposit as I am starting to get worried that they may end up buying some toxic waste. Ironically one of my client last week was a 50+ year old lady who was both glad but apprehensive when I recommended fixed deposit for her. She and her son said that she was cheated years ago to buy into a structured product when she went to the bank just to open fixed deposit. She didn’t dare to visit banks again for fear of being sold another unsuitable product. I told her son to go along with her but due to his busy schedule this may be quite difficult. I then told her that MAS has banned bank tellers from pushing products. They were happy to hear it and proceeded to go to the bank to open the recommended fixed deposit.

Now, when I saw the complain letter in Straits Times forum page today about OCBC pushing products to old folks opening fixed deposit, I am beginning to get really worried that I have done my client a disfavor for recommending the FD.