Date: September 22, 2015
Correspondingly, simply meeting prescribed wealth or income thresholds to be considered accredited investors (AIs) does not mean that the investor is knowledgeable about the investment and understands fully the risks. AIs are assumed to ﾓknow it allﾔ and thus have a wider choice of of more complex investment products that the financial institutions can offer them. Therefore, the need for new AIs to opt-in would help prevent them from being sold the wrong product. In addition, current AIs who are not comfortable with more sophisticated investment instruments should also consider opting out so as to benefit from the full range of capital markets regulatory safeguards available to retail investors.
Ultimately, all investors should be educated and first understand the features and risks of their investments; and should they not understand the risks involved , they should consider not investing.
SIAS also calls on the authorities to seriously consider regulating the investor educators to ensure that they do not provide advice and also to require overseas educators and organisers to register with the relevant authorities before meeting our citizens . Many overseas so-called educators fly in and attract our citizens through advertisements promising high returns without any liability whatsoever ,with no registered office in Singapore, leaving Singaporeans with no recourse
David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)
