Planned CDP revamp raises many questions
By R SIVANITHY
ACCORDING to a recent news report, the Singapore Exchange (SGX) is looking at allowing stockbrokers access to clients' Central Depository (CDP) accounts so that dealers and remisiers can see just what stocks their customers have at any one time.
To be sure, when this does materialise, it would be a step in the right direction, one that is arguably long overdue since it would help brokers tailor their advice and guidance to customers, especially those from the retail sector.
As SGX chief executive Magnus Bocker said when revealing the plan, the existing system is outdated and out of sync with developed markets so an upgrade is clearly needed.
However, several questions present themselves, the most obvious being why such a seemingly important and overdue revamp should take as long as three years to implement.
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Vehemently dislike the whole idea, it's an infringement into financial privacy of the investor.
ReplyDeleteOne of the least person to trust is the stock-broker, no way would get my approval.
Next month, my insurance policy is matured. A bank manager meet me and show me a printed copy of my account details with amount. I am shocked with such business practice. As I did NOT instruct any one to print my statement of account, why the a bank exployee infringe into my financial privacy?
ReplyDeleteI wrote to Magnus Brocker and gave some suggestions on how to implement the change earlier. He replied on the same day. Most CEOs in Singapore do not bother to reply - so it is nice to see a CEO that is quite approachable and responsive. He earned my respect!
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