Friday, November 12, 2010

Product Highlight Sheet for DBS Preference Shares

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.

1 comment:

Solomon said...

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.

I am wondering why they are selling those shares to general public now.

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