A few days back Safalniveshak posted a comment saying his friend’s father was cheated by an agent who had sold him 192 schemes in 192 folios. He called it bad and disgusting.

Let us look at the whole process. A mutual fund or a life insurance company gets a LICENSE to do business in their respective businesses. They then create products which are cleared (specifically not saying approved because SEBI does not like that word). They appoint and TRAIN agents – either independent or tied.

So an approved and trained salesman sells an approved product to a client. If there is a defect in the product OR in the method of selling, who is to be blamed? I do not know.

Look at it from the client side. Either he knows and understands what he buys, or he runs the risk. WHERE THE HELL WAS the head of the company who SAW WHAT WAS HAPPENING?

Surely the higher ups knew what was going on…..or did they not?

Very easy to blame the people………………..

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  1. Hello Sir,

    For long the agents have been held responsible for Misselling & abused too. If you look at their basic skills & how they are trained on the product which might be in minutes, we realize that the financial companies do this on purpose.

    I have met agents who themselves cant differentiate between products. Some good agents go through the pain of learning all about products & hence wouldnt choose to missell. Onus is on customers then to not get fooled.

    P.S.: Am not from the financial industry & hence no bias.

  2. And that’s why I blamed the ‘company’ and not the ‘agent’ in my post and through the comment!

    The horrible part was that I even called the ‘company’ posing as a potential investor, and spoke to a consultant higher up the chain. Even he tried to mis-sell!

    I’m a complete believer in the fact that the buck starts and stops right there at the top!

    Of course the investor is also to be blamed for getting mis-sold! But it’s a question that will never get a perfect answer – “Who’s to be blamed – the perpetrator or the perpetrated?”

  3. somehow in india we have all given in to the fact that we will get fooled and blame the perpetrated. our mindset is so simple that we dont demand a probe and better services . quit companies throw them out of business, this is the way out , there has to be consequences or else we get into this helpless attitude. and businesses thrive on that mindset.

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