Competition watchdog rebukes ten financial advisory firms for teaming up against iFAST

It was pressured to withdraw a Fundsupermart offer.

The Competition Commission of Singapore today issued a Proposed Infringement Decision (PID) against 10 financial advisory companies for ganging up on iFAST financial and pressuring the firm to withdraw its offer of a 50% commission rebate on life insurance products on the Fundsupermart.com website

The parties pressured iFAST to withdraw its offer on the the Fundsupermart.com website in contravention of section 34 of the Competition Act.

The 10 financial advisory companies are financial advisers licensed under the Financial Advisers Act and are members of the Association of Financial Advisers (Singapore) (AFA).

iFAST is both a securities dealer and a financial adviser, but it was not a member of the AFA at the time of the Fundsupermart Offer.

iFAST launched its Fundsupermart Offer on 30 April 2013, which allowed purchasers of life insurance policies to enjoy cost savings from the 50% commission rebate. A few days later, on 3 May 2013, iFAST withdrew its Fundsupermart Offer. 

CCS noted media reports about the withdrawal of the offer In May 2013. CCS also received a complaint on this matter and subsequently commenced investigation under the Competition Act.

“Upon completion of investigation, CCS provisionally finds that there was an agreement during an AFA meeting on 2 May 2013 as well as further coordination among the 10 financial advisory companies to apply pressure on iFAST to withdraw its Fundsupermart Offer. iFAST withdrew its Fundsupermart Offer the following day on 3 May 2013,” CCS said.

The PID is a written notice setting out the facts on which CCS makes its assessment and its reasons for arriving at the proposed decision. All the parties have six weeks from the receipt of the PID to make their representations for the watchdog’s consideration.