Banker in Distress | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more

This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.

What Happens if You Make Mistakes, Say The Wrong Things to Clients?

Financial advisory business is a highly regulated industry.  In Investment Banking and Private Equity, the practitioners would have to read through tons of legal documents and learning for months and years.  They do behind-the-scene execution before the best is granted the opportunity to deal with clients.

After all, they are dealing with hundred of millions and billions of investment and capital decisions for Fortune 500 Companies, global MNCs or a family office that manages billions of assets?

This is not the case for Wealth Managers.  Upon receiving their advisory license, they are thrown straightaway into meeting clients and providing financial advisory.

- Article continues below -

Sign Up
Basic Member: $5 Monthly | $60 Yearly
Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680)

The 2024 Investment Day
23rd July Hong Kong | 25th July Singapore

Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 23rd July 2024 in Hong Kong, 25th July 2024 in Singapore.
Visit | Register here

The 2024 Family Office Summit
16th Oct Hong Kong | 23rd Oct Singapore

Join 80 single family offices & family office professionals in Hong Kong & Singapore
Links: 2024 Family Office Summit | Register here

Read More:

It is little wonder many advisors make mistakes or say the wrong things to clients.  But, if you are the financial advisor, what do you do when you make mistakes and say the wrong things?


No. 1 Luckily, You Are Not The First

Private Banking Management Associate
Private Banking Management Associate

” Life Insurance is designed to payout upon your death “

” Life Insurance is designed to payout upon your death ”  Unfortunately, it is not as simple as it sounds.

There is the court order, the will, grant of probate, delays due to fraud, application errors, mistakes in underwriting.  Some insurance companies give the payout faster than others.

” Unit Trust.  The only fee is the sales charge ”  And one day, you uncover there’s management fees and trailer fees, which your financial institution get some as well.  These fees could reduce the illustrated returns considerably.

” Interest rate goes up, bond prices fall ”  You assume when interest rate starts dropping, bond prices should go up.  And it didn’t happen as .. then many factors kick in. How do you explain to your clients?

Sometimes, it could be

  • administrative mistakes or wrong signature
  • quoting the wrong dollar value at maturity
  • forgetting to tell clients mortality charges will rise according to age.
  • Principal protection or guarantee is subject to the solvency of the issuing organization
  • citizenship impacts financial ownerships and rights

Your Saving Grace: If you are a new advisor, learning from the mistakes early is great.  It quickly teaches you to be vigilant, especially when the mistakes result in a cancellation of sales.  Rather than hiding the mistakes, you could be honest about it … and probably laugh it off a few years later.  Why would a lost opportunity cause you more and better sales in the future?

When you become a team manager someday, you would be able to guide your new advisors better too.


No. 2 It Won’t Be Your Last

Banker in Deep Thought
Banker in Deep Thought

If you think you can learn from it, great.  But chances are, you will still make mistakes.  Financial advisory involves handling complex financial processes, administration works and ever-changing terms and regulations.  This means you are constantly reacting to advisory process and administrative work.  You will continually be prone to mistakes.  So double-checking, triple-checking, having another person to help out, pre-empting errors would save everyone’s time, including clients and your own time.

Your Saving Grace: When clients see your prudent effort in checking the documents and ensuring every sales advisory is well-covered, they will be so over-whelmed by your diligence,and literally trust that you will manage their money well.


No. 3 Complaints and Displeasures

Personal Banker
Personal Banker

If you think by saying: “It’s an honest mistake” and the issue will dissipate, you likely will be wrong.  Perhaps, you had been taught that is the right thing to do when you make a mistake, which you then help to resolve the issues, and make yourself feel better.

Welcome to sales in the financial sector.  When it comes to money matters, you get hit harder and uglier by clients.  Double the responsibilities and consequences of being in a highly regulated industry and your very-demanding superiors who are trying to get you to adhere to every processes.  And you get serious warnings such as losing your license and going to jail … …

Your Saving Grace: Financial advisory is about managing risks and an uncertain future.  There will be good times and there will be recessions.  Learning how to deal with more uncertainties early in your career will give you the necessary tenacity, character and skill-sets to deal with tougher and challenging times.

Read More:


No. 4 You May Get a Warning

Depressing Times
Depressing Times

Would you get a warning?  It depends on the seriousness.  Some mistakes warrant a warning, as required by regulations or internal policies.

For example, when communicating with clients, some new advisors think Unit Trust Bond Funds is very much guaranteed (very safe) or Unit Trust Balanced Fund is diversified and thus will only go up.

Isn’t that how performance are being illustrated Unit Trust Investments? It seems to go only up.

More Judgement Errors:

Your Saving Grace: Most of the time, your superiors and departmental heads are quite kind to help you get through the tough times.  You may get a big tongue-lashing – that is part of the learning experience, to deal with mistakes and manage risks.  If they fire you on your early mistakes, it’s probably not such a good place to be in.  Perhaps they warrant firing you on serious breaches, which could jeopardise the reputation and future risks of the institution and industry.


No. 5 Suspension, Fired, Blacklisted and Jailed

Top Banker Out of Job
Top Banker Out of Job

As lucrative as it seems to be in the financial industry, things do go wrong.  If you are not astute enough or you commit a serious breach of regulations, you may be suspended from your practice, fired, blacklisted and jailed.  You will be subject to civil and criminal lawsuits.


Financial Institutions have a tough time balancing between taking care and taking risks.  This could involve suspension of assets in the bank.

Your Saving Grace: The odds are low, but it still happens for the unfortunate few.  Some get into it due to fraud, ignorance or arrogance.


No. 6 Sometimes, it is a Hoax.

Independent Financial Advisory
Independent Financial Advisory

Ever heard of mystery shoppers, sabotage or reality show?  Yes, they are around and they are here to catch you off-guard.  Since it is likely a test or hoax, you should get away with it.

Your Saving Grace: Your financial institution might get a tick-off, reminder, light penalties if you flung the test.  But this is all about improvements for everyone.


No. 7 Everyone Makes Mistakes

Successful Private Banker
Successful Private Banker

Everyone makes mistakes.  Sometimes you are forgiven, sometimes you are not forgiven.  Sometimes you get away with it, sometimes you don’t.

As a Wealth Manager or Financial Advisor, clients entrust their life earnings and assets to you.  Naturally, they expect you to be careful when you manage their money.

Your Saving Grace: Over time, you become a better advisor.  Like aged wine and whiskeys, an advisor develops over time.

Read More:


Related Articles:

Managing $20 million to $3 billion. Investing $3 million to $300 million.
For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm.

Join Events & Find Services
Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more.  List hard-to-find financial & private wealth services.

Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected] | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?

Quick Links

2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM

For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success

Register Below

For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors

Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.

Sign Up / Register

    Investment ProfessionalAdvisorProfessional InvestorFinancial ProfessionalManagementOthers

    $20 million to $100 million AUM$100 million to $300 million AUM$300 million to $1 billion AUM$1 billion to $10 billion AUM$10 billion to $100 billion AUMMore than $100 billion AUM

    Mailing List / Free TrialMonthly SubscriptionYearly SubscriptionMembershipEvents

    2024 Investment Day Hong Kong 23rd July2024 Investment Day Singapore 25th July2024 Investment Day Hong Kong 4th Sept2024 Investment Day Singapore 11th Sept2024 Family Office Summit Hong Kong 16th Oct2024 Family Office Summit Singapore 23rd Oct / 6th Nov

    Web links may be disabled on mobile for security.
    Please click on desktop.

    Caproasia Users

    • Manage $20 million to $3 billion of assets
    • Invest $3 million to $300 million
    • Advise institutions, billionaires, UHNWs & HNWs

    Caproasia Platforms | 11,000 Investors & Advisors

    Monthly Roundtable & Networking

    Family Office Programs

    The 2024 Investment Day

    • March 2024 - Hong Kong
    • March 2024 - Singapore
    • June 2024 - Hong Kong
    • June 2024 - Singapore
    • Sept 2024 - Hong Kong
    • Sept 2024 - Singapore
    • Visit: The Investment Day | Register: Click here

    Caproasia Summits

    Contact Us

    For Enquiries, Membership
    [email protected], [email protected]

    For Listing, Subscription
    [email protected], [email protected]

    For Press Release, send to:
    [email protected]

    For Events & Webinars
    [email protected]

    For Media Kit, Advertising, Sponsorships, Partnerships
    [email protected]

    For Research, Data, Surveys, Reports
    [email protected]

    For General Enquiries
    [email protected]

    Caproasia | Driving the future of Asia
    a financial information technology co.
    since 2014

    Previous articleTop Headlines in the Last 7 Days (23rd – 29th May 2016)
    Next article7 Shocking Deals that shake-up Private Banking in Asia covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia