Tan Kin Lian's Blog: Treat indexed ETF differently

Tuesday, January 24, 2012

Treat indexed ETF differently

I have written a letter to the Straits Times in my capacity as President of the FISCA (Financial Services Consumer Association, www.fisca,sg) to ask MAS to treat the indexed ETF differently (from other ETFs based on derivatives) and allow consumers to make online purchase without getting investment advice. I hope that they publish the letter. If not, I will publish the letter here here on Saturday.

5 comments:

Anonymous said...: Been buying index ETFs for the past 3 years due to their safety. Now by creating these rules to 'safeguard' investors, ETFs cannot be bought by investors without 'sophisicated' finance knowledge. Seems that to MAS these sophisicated investors knows better. However individual shares can be bought by anyone.
Seems that to MAS the individual S chips are safer than indexed ETFs.; January 24, 2012 10:15 AM
Anonymous said...: Hard to believe that an indexed ETF is considered more risky than individual shares (and ha! ha! the infamous S-Chips).

Day by day, my confidence in the ability & knowledge of the civil service continues to drop.; January 24, 2012 9:26 PM
Anonymous said...: SGX has an Online Education Programme.
I thought this was meant to educate investors before they buy SIPs.

I passed the test and updated the CAR/CKA form in my POEMS acct. The CAR status became Pending. Then a day later it became Not Pass.

So we must get investment advice to buy ETFs?

I have emailed my broker for clarification.; January 25, 2012 1:31 AM
Anonymous said...: Even you don't pass you can still buy . Pass or don't pass makes no difference if you are bearing all responsibilities. In this case a senior manager will have to warn you of the consequences in writing that the broker is free of all responsibilities and you have no to recourse to protection.
This CKA is more applicable to insurance salesmen and FAs because they have been the cause of clients' investment losses. These insurance agents are not competent. They only peddle funds and ILP products for commission and they are no investment advisers and CKA is targeted at them to stop them of abuses. Since 2001 these salesmen were the cause of CPF members' losses.They churned and twisted their clients' investment to generate commission.
CKA is not to make it difficult for consumers to invest but to stop the incompetent insurance salesmen and FAs from robbing their clients. What do these salesmen know about investment? They know F... They are thieves and robbers. They have no ethics like what Mr. Tan said in one of his letters to the ST forum.
They have no conscience and CKA is to check them.; January 25, 2012 10:43 PM
yujuan said...: Really dun understand why STI ETF is grouped under the broad category of SIP. Investors who buy this Index ETF are the most risk adverse, not the type who would gamble on S Chips.
What kind of brains we have at MAS, all that stupidity is a waste of our country's education system, the lack of simple common sense is really beyond comprehension.; January 26, 2012 12:31 AM