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Greatway Financial (Bank of Montreal's policy) Insured Retirement Plan
February 26, 2020
10:09 am
kuyachris84
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Hi Al,

5-years ago my wife was sold an IRP a year after arriving in Canada to work as a food counter attendant as a minimum wage worker from the Philippines. She had no savings, min. wage job, no TFSA or RRSP yet was soliciated by a Greatway Financial "financial adviser" at her place of employment who insisted she would be better off with an Insured Retirement Plan plus Universal Life.

Plus, my wife already had a life insurance plan with Canada Life through Investors Group, which Greatway Financial was very aware of. Despite not meeting any of Bank of Montreal's Insured Retirement Plan suitability requirements, the policy was still sold to my spouse who had zero financial literacy and depended on her "financial adviser" to provide honest advice.

Now, I would like to ask the experts here if they can provide me with a single way Greatway Financial acted in my wife's best interest by selling her an Insured Retirement Plan + Universal Life given the outlined circumstances?

I would really appreciate your responses.

February 26, 2020
11:30 am
krwilson
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Is this the same as the post on RedFlags?

http://forums.redflagdeals.com.....n-2352656/

February 26, 2020
7:22 pm
kuyachris84
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krwilson said
Is this the same as the post on RedFlags?

http://forums.redflagdeals.com.....52656/  

Yeah, that is also my post.

February 26, 2020
8:55 pm
Norman1
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kuyachris84 said

Now, I would like to ask the experts here if they can provide me with a single way Greatway Financial acted in my wife's best interest by selling her an Insured Retirement Plan + Universal Life given the outlined circumstances?

That's not actually relevant as the insurance agent does not have any legal obligation to act in your wife's best interest. Not sure where you got that from.

Life insurance agents and investment brokers are actually salespeople, like car salespeople, and not fiduciaries, like investment counsellors. One needs to be careful when dealing with salespeople whether they are selling life insurance, investments, or cars.

February 27, 2020
9:50 am
kuyachris84
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Norman1 said

kuyachris84 said

Now, I would like to ask the experts here if they can provide me with a single way Greatway Financial acted in my wife's best interest by selling her an Insured Retirement Plan + Universal Life given the outlined circumstances?

That's not actually relevant as the insurance agent does not have any legal obligation to act in your wife's best interest. Not sure where you got that from.

Life insurance agents and investment brokers are actually salespeople, like car salespeople, and not fiduciaries, like investment counsellors. One needs to be careful when dealing with salespeople whether they are selling life insurance, investments, or cars.  

I got it from the Saskatchewan Life Insurance Bylaws, which states an adviser must work in the clients best interest - it's the law.

https://www.skcouncil.sk.ca/download%20files/Life%20Insurance%20Council%20of%20Saskatchewan%20Bylaw%20-%202020.pdf

Greatway Financial scammed my spouse of their Saskatoon office on an Insured Retirement Plan. Their Vice President Raymond "Ronar" Burgher stated in an e-mail it was totally OK to do what they did and sell an IRP to a minimum wage food worker without any savings, RRSP or TFSA.

I took a look at their Vice President's profiles on Linkedin, one was working as a pork technican only a few years prior without any financial background; the founder, Marlon Antonio does not even have the equivalence of a high school education. Nothing wrong with being a pork technician but typically a financial company will have people with actual financial credentials, especially at the VP level.

We have filed a complaint with the Saskatchewan Provincial regulator and officially have a complaint which has led to an investigation with the Bank of Montreal's senior complaint division with the President's Office. No legitimate bank can allow a company like Greatway Financial to missell Insured Retirement Plans unethically defying all suitability requirements. The reason no complaints have been raised is because most victims are newcomers to Canada who have no idea they have been tricked or duped in my opinion. It's why the predominant client base for Greatway Financial is newcomers, predominantly Filipino immigrants who run off trust bonds within their own community.

I also found Greatway Financial agents are leaving multiple false reviews and have taken screenshots accordingly; agents pretending to be customers, never trust a company that runs off shenanigans like this. Sketchy.

February 27, 2020
2:56 pm
Norman1
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kuyachris84 said

I got it from the Saskatchewan Life Insurance Bylaws, which states an adviser must work in the clients best interest - it's the law.

https://www.skcouncil.sk.ca/download%20files/Life%20Insurance%20Council%20of%20Saskatchewan%20Bylaw%20-%202020.pdf

Unfortunately, it is not the law. Read it again:

4-1 Professional misconduct

(2) Without limiting the generality of subsection 4-1 (1) , a licensee may be guilty of misconduct if the licensee:

(a) fails to place the interests of the consumer before those of the licensee or others;

(i) engages in any practice that is coercive or has the intended effect of inducing a consumer into making a decision that is not in the best interests of the consumer, pursuant to section 7-12 of the Act;

"May be guilty" is not the same as "is guilty". As I said before, insurance agents are not fiduciaries. If they were, that sentence would read "is guilty" instead of "may be guilty".

I took a look at their Vice President's profiles on Linkedin, one was working as a pork technican only a few years prior without any financial background; the founder, Marlon Antonio does not even have the equivalence of a high school education. Nothing wrong with being a pork technician but typically a financial company will have people with actual financial credentials, especially at the VP level.

(laugh) You rediscovered what some of us had realized years ago! Some of these companies just sell financial products and don't actually create them. One doesn't need an MBA or be a CA or CFA to sell them or be a VP of such a company.

Just like in car sales. Car salespeople don't need to go through years of training and apprenticeship that a license car mechanic needs to do.

I also doubt there are strict suitability requirements for that universal life based IRP that your wife bought. As long as she got the insurance coverage she needed, she got a "suitable" product. That she is paying around 10X what she would be paying for the same amount of term life insurance is unfortunate. sf-frown

I have first hand and second hand stories of universal life pitches. Usually, people decline once they see that it would cost 10X what the same amount of term life would cost.

February 27, 2020
3:10 pm
kuyachris84
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Norman1 said

kuyachris84 said

I got it from the Saskatchewan Life Insurance Bylaws, which states an adviser must work in the clients best interest - it's the law.

https://www.skcouncil.sk.ca/download%20files/Life%20Insurance%20Council%20of%20Saskatchewan%20Bylaw%20-%202020.pdf

Unfortunately, it is not the law. Read it again:

4-1 Professional misconduct

(2) Without limiting the generality of subsection 4-1 (1) , a licensee may be guilty of misconduct if the licensee:

(a) fails to place the interests of the consumer before those of the licensee or others;

(i) engages in any practice that is coercive or has the intended effect of inducing a consumer into making a decision that is not in the best interests of the consumer, pursuant to section 7-12 of the Act;

"May be guilty" is not the same as "is guilty".  

I have read it many times, if you want to phrase or interpret it diferetently then I did, that's your prerogattive but in my opinion, it's the same thing. The "licensee" (aka, licensed adviser under provincial insurance authority) must place the consumer (my wife/victim) ahead of his/her own. Pretty clear.

Coercive as well. A high pressure presentation which saw the insurance book decorated by the licensee like it was a piece of artwork by Picasso, trying to coerce her, a financial illiterate person who did not have an education in life insurance "investments" into signing up to an Insured Retirement Plan which was very adverse to her financial well-being.

We filed a complaint with the Bank of Montreal regarding the unethical behaviour of Greatway Financial, their "Vice President" of Compliance (Ronar/Ray Burgher) and the inappropriate matter the company is allowing BMO Insured Retirement Plans to be sold as - quasi criminally, 100% unethically, targeting newcomers from the Philippines who have no understanding of the product.

We've also launched a complaint with the regulators and BBB.

We're not done yet. We'll ensure justice is delivered.

Scamming my wife will be the biggest mistake that company made.

I will see to it that BMO disassociates from them.

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