Date: November 7, 2008
Following the structured product saga where many investors lost money, SIAS has decided that it is timely to embark on an investor assistance programme, essentially to ensure that investors take responsibility for their own investment rather than fully relying on relationship mgrs in financial institutions to make their investment decisions.
It is our finding that in most cases, investors do not make sufficient enquiry as to the suitability and risk profile of the product before parting with their money. They need to have a good feel of the product and decide whether it falls within their own risk profile.
To this end, SIAS will provide standard questionnaire in due course to arm investors with the necessary tools to evaluate the suitability of the investment product. Further, it is also important for investors to have some guidance as to the level of risks involved in each of the investment products, to enable them to decide whether they should in fact invest in the product. While equity investors have guidance through analyst reports, structured products and the like do not. SIAS would therefore work with the financial institutions to establish a risk rating on each of these products.
To further compliment this initiative SIAS will also be producing and investment handbook as a guide to assist investors on the nature of financial product to enhance their understanding. Investors are also encouraged to take advantage of SIAS investor education programmes, which are now being specially designed for them.
SIAS hopes that with these programmes, investors will be better positioned to take control of their own investment.
President / CEO