I was surprised to find that consumers have to read a 117 page prospectus on the DBS preference shares. I recall that, one or two years ago, MAS had a requirement for financial products to be described in a product highlight sheet. Is this requirement already implemented? Can someone working in MAS or the financial sector enlighten me?
Answer
I spoke to a MAS official. She told me that the requirement of a Product Highlight Sheet has been accepted by MAS but has not been implemented yet. Still, it would be nice for DBS to provide this PHS, rather than give a lengthy prospectus to the retail public.
If I remember correctly, DBS scorned the other 2 banks for selling preference share to general public. At that time, DBS reserve the preferetial share to institutional buyers only.
ReplyDeleteI am wondering why they are selling those shares to general public now.