ST Online Forum: Get client approval for CDP access

Editor,
ST Forum Page

I SHARE the concern of Mr Eng Tiang Chuan ('Guard against rogue brokers'; yesterday) about allowing stockbrokers to have unrestricted access to their clients' accounts in the Central Depository (CDP).

This concern can be alleviated if the access is on the specific approval of the client. At present, the client has to open a trading account with his specific stockbroker, which is already linked to the CDP account. It would be quite easy to modify the system to allow the client to indicate if the specific broker is allowed to view the CDP account.

In my case, I would be happy to allow my trusted stockbroker to access my account. If there are specific actions that need to be taken - for example, rights issues - I would like my stockbroker to alert me, so that I could take the appropriate action to protect my interests.

If I do not take up the rights issue, for example, I could sell the rights in the market, rather than let it lapse due to an oversight.

There could be other corporate events that the client might benefit from after being alerted and advised by a stockbroker, provided the stockbroker knows that the client has some holdings in the shares of that company.

I wish to suggest another feature - the CDP should allow the client to see an audit trail of the people who have viewed the holdings in the CDP.

This will give the confidence that only the authorised persons had made the access, for a legitimate purpose.

Tan Kin Lian