SFO defines unsolicited calls in a clumsy way. To make things simplier, I would say a "call" means the initiation of any interactive dialogue requiring instant responses. By using this measure, the following communications are not considered as "calls":
- Send letters / emails / SMS
- Present in a sales talk (esp. if the no. of audience is large)
Investment is a significant financial decision which should be made with careful considerations. It should not be driven by heavy selling pressure created by a "call". Usually the so-called "vulnerable persons" (e.g. elderly people, housewives, etc.) are typical victims of cold calling.
But from the eyes of more strong-willed or educated people, cold calling is viewed as an ineffective selling skill. Cold callers usually use "closed-end" questions (e.g. Have you heard about XYZ product?) or preset introductions (e.g. "Let me introduce XYZ to you."). This is no respect of the recipient's interest (why I am supposed to listen to you). These cold callers are lacking real communication skills and just following the sales scripts.
In the age of information overload, I expect "warm calling" (attracting targeted customers to approach you) would sooner or later replace "cold calling".
People are fear of committing the offence accidentially. The best way is to shut up all the time at the expense of selling opportunities. Perhaps S.3(4)(a) is a little bit help. So long as you talk to 2 walk-ins in identical terms before they put up an enquiry to you, then you are safe (I believe).
ReplyDeleteSilence is not the only way to avoid committing the offence. I think the art of communication is more important. A patient salesman can start up a dialogue without mentioning any specific product / service but arouse the other's interest to ask for more. This is the technique used by many financial planners.
ReplyDeleteAgree. The law does not prohibit cold calling at all. In fact, I believe the law makers (SFC?) was trying to making the selling process to be handled professionally just like what you put financial planners for example. Yet, who guarantees a well-trained marketing staff will not say something which constitutes or could constitute cold calling inadvertently? Who guarantees the SFC will not lean toward customers’ side? Unless the selling process is taped recorded, the licensed personnel is always in an inferior position.
ReplyDeleteThe August issue of the Enforcement Reporter reports that a rep. has been banned for re-entering the industry for failing to make reasonable enquiries before assisting another rep. to meet and open accounts with prospective clients (ie he facilitated cold calling).
ReplyDeleteBased on the limited facts reported, it seems that this has expanded the scope of the offence of cold-calling to "facilitating others to making unsolicited calls".