You will be able to say what a licensed adviser owes you that an assistant does not, and when that matters.
Darren, from module 1, is thinking about life insurance now that he and his girlfriend are planning to marry and buy a flat. He's spent two evenings with an assistant. It explained term and whole life cover clearly, suggested a way to estimate how much cover a family might need, and listed the questions to ask an insurer. Then it suggested a sum assured and a policy term that seemed to fit what he'd told it, in a tone that read very much like a recommendation, and now he's wondering whether he still needs to talk to anyone.
The answer depends on what each side owes him. An assistant and a licensed adviser can both produce something that looks like advice. Only one of them is accountable for it.
In Singapore, advising people on investment products and life insurance is regulated. Under the Financial Advisers Act, firms that give it must be licensed or exempt, and the individuals who advise clients must be appointed representatives of those firms. MAS keeps a public Register of Representatives, so you can check whether the person in front of you is allowed to advise and on which products.
None of that applies to an assistant. It isn't licensed, it isn't a representative, and it doesn't appear on any register. The company that built it hasn't agreed to advise you, and its terms of use will typically say so.
A licensed adviser has duties an assistant doesn't. Before recommending a product, an adviser is expected to find out about your situation: your income, commitments, existing cover, objectives, how long you can invest for and how much risk you can take, in what the industry usually calls a fact-find.
And when the adviser recommends something, there must be a reasonable basis for it, given what they found out. In practice, that means the recommendation has to make sense for you, the adviser has to be able to show why, and the reasons are recorded. If they recommend replacing a policy you already have, they have to consider whether switching leaves you worse off.
An assistant has neither duty. It knows only what you typed, and it can't tell what you left out. It doesn't have to ask about your existing policies, your dependants or your health. When Darren's assistant suggested a sum assured, it didn't know he already had cover through his employer, because he hadn't mentioned it. A suggestion built on half the facts can look just as polished as one built on all of them.
If you want to see what these duties look like from the adviser's side, Selling financial advice in Singapore: needs-based and compliant goes through the fact-find and the reasonable basis rule in detail.
The second difference is recourse. If you think advice from a licensed adviser was unsuitable or a product was mis-sold, you can complain to the firm, which must have a process for handling complaints. If that doesn't resolve it, you can take an eligible dispute to the Financial Industry Disputes Resolution Centre, FIDReC. Check its website for what it handles and how to file.
With an assistant, you have none of this. There's no firm that owes you a complaint process for its answer, no dispute body, and no record of a suitability assessment, because none was done. If you act on an assistant's suggestion and it turns out badly, the loss is yours.
This doesn't make assistants useless for big decisions. It puts them in the right place.
AI is very good for learning and preparation. Use it to understand the products, the terms and the trade-offs. Use it to draft the questions you'll take into a meeting, and to check you understand what an adviser tells you afterwards. You'll walk in better informed and harder to sell to, which is good for you and for any honest adviser.
See a licensed professional when the decision is large or hard to undo, when it involves insurance cover your family would depend on, or when tax or legal complications are involved. A lawyer for wills and estate questions, a tax professional for complex tax, a licensed financial adviser for insurance and investment recommendations. Seeing one doesn't mean doing whatever they say. You can bring your research, ask about fees and commissions, and still decide for yourself.
Darren decided the education part was done and booked a meeting with an adviser, after checking the adviser's name on the MAS register. He brought his list of questions and mentioned the employer cover in the first five minutes.
Think about the money decisions on your own horizon, and for each one, which part you can prepare for yourself.
Write a list of three money decisions you face and mark which you will research yourself with AI and which need a licensed professional.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).