Unethical practices
There are a number of unethical practices which are considered unethical.
Failure to disclose
It is important that clients should be aware of whether or not the advice they are getting is independent.
Selling in disguise
Sales people should clearly disclose the intention of any call to a client. Some sales people have called on some clients with the pretence of doing so for another purpose when the true reason has been to make a sale. The sale is disguised as part of another process.
Churning
This describes a practice of trying to get a client to take out a new insurance contract when an existing contract would suffice. A sales person will earn money on the new contract and therefore this can be an attractive proposition for them.
Switching
Similar to churning, but in this case the investment is switched from one contract to another simply to gain extra commission.
Over-optimistic projections
This is where over optimistic investment rates are used to inflate future potential payouts.
Overcharging
This applies either to excessive high earning for making a financial arrangement or failing to make it clear to a client that an additional charge might apply.
Over selling
Selling more insurance than the client really needs.
Buy now while stocks last
Selling something that is not totally suitable, but because it may be withdrawn, the salesperson wants to close the sale at that point in time before the product is no longer accessible.