Championing Change: IFPAS Past President Leong Sow Hoe’s active role in shaping Singapore’s financial advisory profession

Mr. Leong Sow Hoe, a highly respected figure in the financial advisory field, served as the President of IFPAS over two terms, 2014-2016 and 2018-2020. With over 38 years of industry experience, Mr. Leong has been a dedicated advocate for professionalism within the financial services sector.

Mr. Leong’s commitment to IFPAS began in 1989 and continues to this day, as he currently chairs the IFPAS Strategic & Technical Advisory Response (STAR) Team. His leadership has extended beyond administrative roles; he actively engages with authorities, prioritising the well-being of the industry and elevating the professional profile of practitioners. Under his guidance, IFPAS has transformed into the voice of the industry,
focusing on skills development and social engagement.

Notably, Mr. Leong oversaw the successful IFPAS-MediShield Life Pro Bono Consultation in 2015, a collaboration with the Prime Minister’s Office, the Ministry of Health, and the People’s Association. Currently an active member of IFPAS’s Executive Council, Mr. Leong continues to safeguard industry interests and develop future leaders for IFPAS. His legacy lies in fostering a resilient community that thrives amid industry challenges and uncertainty.

In an insightful conversation with Mr. Leong, we explored his active role in shaping the financial advisory industry through decisive actions and unwavering advocacy.

Mr. Leong’s reflections highlight how his proactive stance and commitment to addressing regulatory challenges have left an enduring legacy. The following Q&A section delves into the strategic initiatives he championed, the obstacles he overcame, and his vision for future leaders, emphasising the importance of resilience and active engagement in safeguarding the interests of financial practitioners.

Journey & Early Involvement

In response to a query regarding the beginnings of his involvement with IFPAS, Mr. Leong reflected on his journey with the organisation, tracing it back to its earlier days when it was known as the Life Underwriters Association of Singapore (LUA) in the early 1990s. During this time, Mr. Leong assumed the role of honorary secretary, gaining valuable insights into industry challenges and developments, which laid the groundwork for his future engagements. His reconnection with the association occurred in 2012 when Mr. Leong was invited to join the Strategic & Technical Advisory Response (STAR) team, which was tasked with addressing the Financial Advisory Industry Review (FAIR).

Regulatory Challenges & Responses

Regarding his response to MAS Notice 306, introduced in 1990, Mr. Leong, as the Honorary Secretary of LUA, played a crucial role in the negotiation process. This set of directives imposed significant limitations within the industry, including restricting the number of agents per agency to 40 and placing constraints on overriding compensation structures. These measures were essential in transforming the industry from a lawless free trade environment to
a highly regulated one aimed at addressing issues such as high policy lapse rates and consumer complaints regarding misselling practices. Mr. Leong’s involvement provided him with valuable insights into the industry’s inner workings during this transformative period.

Whereas addressing the CEDLI initiative, also known as the Committee for the Efficient Distribution of Life Insurance, Mr. Leong stated it was aimed at enhancing the professionalism of agents.

It implemented requirements for thorough fact-finding and analysis, as well as appropriate recommendations before policy sales. This initiative ensured agents were well-trained and competent, transforming the sales process from a simple pitch to a thorough financial planning approach. CEDLI has now laid the groundwork for current standards of professionalism in the industry. The year 2012 saw the formation of the IFPAS STAR team with Mr. Leong at the head, to engage with MAS. This was in response to the challenges presented by the Financial Advisory Industry Review (FAIR). The review posed the greatest threat
by proposing changes such as converting commission-based remuneration to a fee-based system, reducing tier structures, raising entry qualifications, and introducing a balanced scorecard system. Recognising the consequences of these proposals on the financial advisory industry, Mr. Leong and his team conducted extensive research and presented compelling arguments which demonstrated the positive economic impact of life insurance and the
impracticality of these measures. Their efforts influenced MAS to reverse some measures, ensuring a more balanced approach that allowed the industry to thrive and develop further.

During the FAIR review, Mr. Leong faced the challenge of the bundled product disclosure requirement. This proposal required agents to present alternative solutions, such as term policies, potentially influencing clients to choose less expensive options and resulting in lost sales for agents. The argument centred on that while ensuring consumers had choices, they should not be directed towards making specific ones. Mr. Leong took these concerns to higher
authorities, including then Deputy Prime Minister Tharman Shanmugaratnam and Ravi Menon, the Managing Director of MAS, highlighting the inequity of the proposal. Eventually, they acknowledged his position, leading to a reversal of the requirement. This decision allowed for fair competition and fair consumer choice.

Leadership & Governance

Mr. Leong identified the need for a more structured leadership approach within the Executive Committee of IFPAS. This realisation prompted a revision of the organisation’s constitution with the introduction of a succession system. Now, members are required to demonstrate their capabilities by serving on subcommittees before joining the main committee.

Prospective leaders were also required to serve as committee members and hold other appointments before becoming eligible for the presidency. This overhaul aimed to ensure that only competent and dedicated individuals assumed leadership roles within IFPAS. Mr. Leong aimed to foster stability and continuity within the organisation and propel it to achieve its goals.

Public Perception & Community Engagement

Mr. Leong’s strategy for enhancing IFPAS’ involvement in the public sphere was the MediShield Life Project. With this project, the association volunteered to educate residents at 89 community centres over 1.5 years about the benefits of MediShield Life, developed by the Ministry of Health.

Under Mr. Leong’s leadership, IFPAS agents underwent thorough training to provide accurate information to the public, without conducting sales. This approach was crucial in building trust and credibility and improving the overall reputation of the life insurance industry. The success of the MediShield Life Project was highlighted by the absence of complaints, demonstrating IFPAS’ dedication to community service and improving public opinion of the life insurance sector.

Achievement and Advice

Mr. Leong reflects on several significant achievements during his time with IFPAS, including the successful negotiation of FAIR proposals, the positive outcome of the MediShield Life Project, and the revamping of IFPAS’ leadership structure. These initiatives were vital in stabilising the industry, improving public perception, and laying a solid foundation for future leaders. His overarching goal was to foster a resilient community capable of thriving amidst
challenges and uncertainties.

Mr. Leong also offers valuable advice to future leaders of IFPAS, as they must uphold the principles of professionalism, engage in continuous learning, and offer fair representation of all stakeholders. His guidance stresses that leaders engage constructively with regulatory bodies, safeguard all financial practitioners’ interests, and consistently aim to enhance industry standards.

Furthermore, he emphasises the significance of taking a firm stand on all issues as they are crucial for ensuring the industry’s growth and ensuring its long-term stability. His insights reflect a commitment to leadership that navigates not only challenges effectively but also cultivates an environment conducive to long-term success within IFPAS.

Overall, Mr. Leong has offered a lasting impact on IFPAS and the financial advisory sector as a whole. His leadership and vision highlighted a commitment to innovation, advocacy, and community service, influencing the industry’s growth and its ability to navigate issues with resilience and incredible foresight.

To learn more about IFPAS, visit: https://www.ifpas.org.sg/

This is a Moneyplayschool and IFPAS collaboration, and the write-up first appeared in the 55th Anniversary Yearbook of IFPAS.