To choose a financial advisory agency, compare the written contract and the supervisor, not the brand or the recruiter’s income claims. The questions that matter are about money you may have to pay back, the targets you must hit, the costs you carry, the training you get and what happens when you leave.
Remember who you are speaking to. In most agency structures the person recruiting you earns an override on your sales. That does not make them dishonest. It does mean you should ask for everything in writing.
Before the Meeting: Three Checks
- Search the recruiter on the Register of Representatives. It shows the firm they currently act for.
- Find the firm in the MAS Financial Institutions Directory. Confirm whether it is an insurer, a bank or a licensed financial adviser. See tied agency versus IFA versus bank for what that means.
- Check MAS’s enforcement actions page. MAS publishes prohibition orders there.
Note that “agency” often means a team or unit within a larger firm. Your contract is with the firm, but your daily experience depends on the unit and its leader. Ask about both.
How to Choose a Financial Advisory Agency: The Questions
Bring this list. Ask for the answers in writing, or ask to see the clause.
| Topic | Questions to ask | Why it matters |
|---|---|---|
| Status | Am I an employee or self-employed? Is there any fixed pay? | Decides CPF, leave and who bears costs |
| Allowances and financing | How much, for how long, on what conditions? Is any of it a loan or advance? | A conditional payment can stop or become a debt |
| Clawbacks | What must I repay if I miss targets, a client cancels, or I resign? Within what period? | This is the largest hidden risk |
| Validation targets | What are the monthly or quarterly minimums? What happens after one miss? | Tells you how long you really have |
| Commission | Can I see the remuneration schedule? What share reaches me at my rank? | Overrides reduce what you receive |
| Costs | What do I pay for: exams, MAS fees, desk, systems, leads, events, insurance? | Costs come out of commission |
| Leads | Are leads provided? At what price? Refunded if unusable? | Paid leads can turn income negative |
| Training | What does the first 90 days cover? Who trains me? | MAS found gaps at some firms |
| Supervision | Who is my supervisor? How many people do they supervise? | The supervisor matters more than the brand |
| Exit | Notice period? What happens to unpaid and renewal commission? | Affects income after you leave |
| Clients | Who services my clients if I go? May I contact them? | Defines what you actually own |
Allowances, financing and clawbacks
Ask the recruiter to walk through a bad case on paper: “If I receive the allowance for six months, miss the target in month seven and resign in month eight, what do I owe?”
A clear numerical answer is a good sign. A change of subject is not.
Also ask about commission clawbacks when a client cancels during the free-look period or lets a policy lapse early. Our article on how commission and pay work explains why these arise.
Validation targets
Ask what share of new joiners in the unit met validation in the last two years. The recruiter may not have, or may not share, the figure. How they respond is still informative.
Ask what counts toward the target. If only certain products count, that creates pressure to recommend those products. The law still requires each recommendation to suit the client.
Lead costs and other charges
Some units sell leads to their advisers, or share the cost of roadshows and advertising. Ask for the price per lead, what a “lead” is, and what has happened to other advisers who bought them.
Ask for a complete written list of charges. MAS’s fee guidelines say a lodgement fee and an annual fee apply to each representative and are paid through the firm; ask whether the firm absorbs them. Our guide to the costs of starting lists the usual items.
Training
In a review published in December 2025, MAS criticised onboarding that left out the prospecting approach, the case submission process and compliance matters, and firms that let representatives advise on investment products before finishing product training.
So ask for the training schedule. Ask who delivers it, whether the firm has approved the materials, and how you are assessed before meeting clients alone. Compare the answer with what the first 90 days should look like.
Exit terms and who owns the clients
People rarely ask about leaving when they are joining. Do.
- Renewal commission. Commission on a regular premium policy is spread over at least six years or the premium term, under MAS rules. Ask what happens to the unpaid part if you resign, and whether it ever vests.
- Notice and release. Ask how long the firm takes to process a resignation. A new firm cannot appoint you until the paperwork is in order.
- Non-solicitation. Ask what the contract says about contacting clients and colleagues after you leave.
- Your record. Complaints, misconduct reports and your Balanced Scorecard history follow you to the next firm.
Red Flags
- Income screenshots, cars and holidays as the main pitch. They say nothing about the median new joiner, or about costs and clawbacks.
- “Guaranteed income.” Commission is not guaranteed. An allowance with conditions is not a salary.
- Pressure to sign or resign quickly. A sound offer survives a week of reading.
- No contract until after you commit. You should see the full agreement and remuneration schedule first.
- Large upfront payments. Be cautious about paying for courses, kits or “licensing packages” beyond official exam fees. The Singapore College of Insurance carries a scam advisory about fraudulent courses and exam registrations, so register only through its official channels.
- “Recruit and earn” as the main message. If the pitch is mostly about building a team, ask where client advice fits in.
- Being asked to list family and friends at the first meeting. Your contacts are valuable to the unit whether or not you last.
- Vague answers on compliance. A unit that treats the Balanced Scorecard as a nuisance puts your pay and record at risk.
- Dismissing other firms or products. A professional can explain differences without running anyone down.
The short version: Ask what you could owe, not only what you could earn. Get the allowance conditions, clawbacks, targets, costs and exit terms in writing, meet the person who will actually supervise you, and compare at least three firms before you sign.
Comparing Offers Side by Side
After each meeting, write the answers into the same table. Then score what matters to you.
For most new advisers, the order of importance is roughly:
- the quality and availability of the supervisor,
- the structure of training in the first three months,
- the downside terms: clawbacks, targets and exit, and
- the commission schedule.
The commission rate matters least in year one, because a higher share of very few sales is still very little.
Finally, check your own position. Use the budget planner and emergency fund calculator to see how many months you can last. The firm with the gentlest downside terms may suit you better than the one with the highest headline payout.
What To Do Next
- Verify the recruiter and firm on the MAS register and directory.
- Send the question table to each firm before the second meeting.
- Ask to speak to two advisers in the unit who joined in the last 18 months, without the recruiter present.
- Have someone outside the industry read the contract with you. For legal questions, consult a lawyer.
- If you are still deciding whether the career suits you at all, read is it right for you, or go back to the career guide.
