In Singapore, becoming a financial advisor can be a rewarding and meaningful career. However, choosing where to begin your journey – whether in a bank, a tied agency, or an independent financial advisory (IFA) firm – can greatly influence your experience, development, and long-term success. Each platform offers different levels of support, flexibility, and client engagement. Let’s explore the similarities between these roles, key differences, and who each path is most suitable for.
Shared Responsibilities Across All Platforms
No matter which platform you choose, financial advisors in Singapore must be licensed by the Monetary Authority of Singapore (MAS) and comply with strict regulatory requirements. Advisors across all three models are expected to:
- Understand clients’ financial goals and needs
- Recommend suitable insurance and investment products
- Conduct regular reviews of clients’ portfolios
- Uphold high ethical and compliance standards
You’ll also need to pass certain examinations, such as the CMFAS papers, and stay updated on market trends, policy changes, and product developments. Good communication, empathy, and integrity are essential traits in all settings.
Key differences between financial advisor roles in Singapore
| Aspect | Bank Financial Advisor | Tied Agency Advisor | Independent Financial Advisor (IFA) |
|---|---|---|---|
| Employment Type | Full-time employee | Self-employed | Self-employed |
| Income Structure | Base salary + incentives | Commission-based | Commission-based |
| Client Access | Bank customers, walk-ins | Self-sourced | Self-sourced |
| Product Range | Limited (bank-approved) | Limited (one insurer) | Wide range (multiple insurers) |
| Training & Support | Moderate | Strong | Limited (self-driven) |
| Autonomy | Low | Moderate | High |
| Sales Pressure | Moderate to high | High | High |
| Brand Recognition | Strong (bank’s brand) | Strong (insurer’s brand) | Weaker (build personal brand) |
| Best For | Stability, structure, easy client access | High earners, mentorship, career progression | Independence, unbiased advice, entrepreneurship |
Working as a Financial Advisor in a Bank
If you join a bank as a financial advisor, you’ll usually be employed full-time and receive a base salary along with performance-based incentives. One of the biggest advantages is access to a constant stream of clients through the bank’s existing customer base, which makes it easier to meet sales targets, especially in the early stages of your career.
However, there are limitations. Bank advisors are restricted to selling products approved by the bank — typically from a small selection of insurers or fund managers. While this makes the sales process smoother, it also limits your ability to offer more tailored or competitive solutions. Bank-based advisors may also face stricter oversight, have less flexibility in how they manage their time, and often work in more sales-driven environments.
Pros of being a Bank Financial Advisor
- Strong brand name and trust
- Access to a steady stream of walk-in clients or bank customers
- Stable income (base salary + incentives)
- Less pressure on lead generation
Cons of being a Bank Financial Advisor
- Limited product range (you may not always offer the best option in the market)
- Less autonomy in product recommendations
- Often sales-target driven
This model is best suited for those who want stability, structure, and access to ready clients without the pressure of building a business from scratch.
Joining a Tied Agency
A tied agency is affiliated with a single insurer, such as Prudential, AIA, or Great Eastern. As a tied agent, you are self-employed, which means your income is primarily commission-based. While this means more earning potential, it also comes with higher pressure to perform.
Tied agencies are known for their strong training and support systems, making them ideal for new advisors who want to develop their skills under close mentorship. These agencies often provide structured career paths, including the chance to grow into leadership or managerial roles.
However, the main drawback is product limitation — you can only recommend your insurer’s products, even if better options exist elsewhere. Additionally, you’re responsible for sourcing your own leads, which means you’ll need to be comfortable with networking, prospecting, and building your personal brand.
Pros of Joining a Tied Agency
- Strong support and branding from a single insurer
- Comprehensive training and mentorship programs
- Clear career progression (e.g., becoming a manager or team leader)
Cons of Joining a Tied Agency
- Restricted to selling only your insurer’s products
- High sales targets and pressure to perform
- Need to find your own leads and build a client base
Tied agencies are a good fit for people who are highly driven, motivated by incentives, and want to grow within the framework of a single insurance provider.
Becoming an Independent Financial Advisor (IFA)
Advisors in an independent financial advisory firm have the most freedom and flexibility. IFAs are licensed to represent multiple insurers and investment platforms, which allows them to provide more objective and client-centric advice. This broad product access means you can customise solutions based on what truly fits your client’s needs — a major advantage in today’s market.
However, independence comes with challenges. As an IFA, you’re usually 100% commission-based with no basic salary. You’ll also have to take charge of your own marketing, branding, and lead generation — from building a website to hosting webinars or running ads, the responsibility is yours. Many clients may also be unfamiliar with IFA firms, so establishing trust can take more time compared to banks or big insurers.
Pros of being an Independent Financial Advisor
- Wide range of products to match clients’ needs more objectively
- Greater autonomy in recommendations
- Opportunity to build long-term trust through unbiased advice
Cons of being an Independent Financial Advisor
- May have to invest in your own marketing and client acquisition
- Less brand recognition (clients may not immediately trust your firm)
This model is ideal for advisors who are experienced, entrepreneurial, and client-first, and who are ready to invest in building their own brand and practice.
Which Path Should You Choose?
The best platform depends on your personality, career goals, and life stage. If you value a stable income and want an easier start, a bank may provide the structure and client access you need. If you enjoy a fast-paced, high-reward environment and don’t mind product limitations, a tied agency can help you grow quickly, especially if you’re ambitious and enjoy team-building. If your priority is providing unbiased advice and building your own brand, and you’re ready for the challenges of being self-driven, then the IFA route may be the most fulfilling in the long run.
It’s worth noting that many advisors in Singapore switch platforms over time. Some start in a bank or agency to gain experience and build a client base, then move to an IFA to gain more autonomy. Others stay loyal to their original platform and build successful long-term careers there.
Each financial advisory model in Singapore comes with its own strengths and challenges. What matters most is finding the environment that aligns with your values, work style, and long-term vision. Whether you start in a bank, tied agency, or IFA firm, your success as a financial advisor will ultimately depend on your ability to serve your clients with integrity, knowledge, and care.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
