The Monetary Authority of Singapore publishes an "alert list" in its website that identifies a long list of companies that operates investments that are not regulated by MAS. They even state that this is not an exhaustive list. This approach is not helpful to the general public.
A better approach is for Parliament to legislate the types of investments that should be regulated. I suggest the following definition, "any contract involving a return of money or delivery of future services, where the contract is advertised to the public through the media or a public talk, excluding contracts where the sum involved is less than $500".
For the avoidance of doubts, the following types of contracts required to be regulated (give a list of the types of transactions, including land banking, time sharing and many multi-level types of marketing scheme). The legislation can also identify the types of transactions that do not need to be regulated. The legislation can give the power to MAS to add or remove from the inclusion or exclusion list from time to time, with the right to appeal to the Minister.
I hope that some of our hardworking members of Parliament can bring up this suggestion to Parliament.
Please give your views on this approach and suggestions on the inclusion and exclusion list.
Tan Kin Lian
I notice that there are quite a few expired companies on the list with many dead web links. Sunshine Empire is an obvious example.
ReplyDeleteThe list could be better arranged by showing companies added in the previous six months and by breaking the list down sections and categories. Also some update on whether the MAS is investigating these companies or who to contact if you are concerned.
Its is better than nothing though and should be more widely promoted.
The list is here
http://www.moneysense.gov.sg/check_our_list/Consumer_Portal_IAL.html
Let me add.
ReplyDeleteThere is a very prominent and active Land Banking company on the list. The list should be a news source for the national press. If MAS has concerns about an "investment" company advertising on national and international TV surely that is important local news?
The Straits Times or Business Times should be picking up on these companies and investigating instead of just re-processing news from other international papers.
I strongly agree that there should be legislation to regulate all types of investments.
ReplyDeleteIn fact in the case of workplace safety and health (WSH), they came out with a WSH Act 4 years ago to cover all workplaces for safety and health matters, and not just Factories.
So it is high time they do the same for investments.
But maybe because unlike WSH, investment is not a life and death matter so hence less urgency and priority. At most and maybe rarely, some commit suicide due to losing all their money.
If you agree on the need for regulation, please send an e-mail or letter to your member of parliament. It is their job to consider this matter and bring up it up in Parliament.
ReplyDeleteIf there is strong interest, I can organise an online petition. But I need to have some responses to this suggestion in this blog. I also need to have 10,000 signatures, before I lodge the petition to the Government.
ReplyDeleteI know that the Government usually ignore Petition, but I will try anyway, if I can get 10,000 signatures.
MAS already said they don't judge the merits of the products until demerits show up.It is too late, right? That is how Harvard trained FT works.
ReplyDeleteThe law should be amended to make those advertisements media and the persons involved responsible for any misleading or fraudulent advertisement. Just like in China, where a law has recently been passed to make those celebrities responsible for participating in any misleading or wrongful advertisment.
ReplyDeleteConcerned I think your idea is excellent. Many sports TV people have been involved with land banking adverts. They should at least apologise to customers for being part of misleading them. As for the media they could easily make reasonable checks. They just seem happy to take the money. I hope they all got paid in land plots.
ReplyDeleteThis list should be publish in all newspapers.
ReplyDelete