Press Statement by SIAS on The Securities and Futures (Amendment) Bill 2012

Date: November 15, 2012

The mandatory reporting of OTC contracts will provide greater transparency and thus help mitigate the build-up of systemic risks and help detect market conduct.

The strengthening of safeguards for retail investors is strongly welcomed. The Introduction to classify more complex products as Specific Investment Products (SIPs) has ensured that financial institutions formally access the knowledge of investors before they invest in these products; thereby ensuring that investors are educated and thoroughly understand the products features, their associated risks and is able to bear these risks. The strengthening of the safeguards for retail investorsメ monies placed with licensed financial institutions should be readily welcomed by retail investors. This will ensure that investor monies would not be exposed to undue risks.

SIAS urges all retail investors to choose investments that they are comfortable with and are able to appreciate the risks involved. They must know their risk appetite and be fully educated on the investments before indulging in it.

David Gerald
President & CEO