Singapore Retail Securities Brokers And CDP To Promote Electronic Statements To All Retail Investors
Joint release by SAS and SGX
- Move in line with global movement towards sustainabillity
- Electronic statements are available for customers with internet trading accounts or CDP Internet Service
investors who have not signed up for internet trading accounts or CDP
Internet Service will continue to receive hardcopy statements
All the nine retail securities brokers in Singapore and The Central
Depository (“CDP”) will progressively provide electronic statements to
customers, starting from the fourth quarter of 2016.
These nine retail securities brokers in Singapore are all members of
the Securities Association of Singapore (“SAS”) and SGX-Securities
Retail investors who have internet trading accounts will be able to
enjoy seamless accessibility when retail securities brokers soon allow
customers the ability to view their account statements and contracts
electronically. They are also able to view, print or save their records
online for up to 3 months when securities brokers switch to electronic
CDP account holders who have registered for the CDP Internet Service
will be able to access their account statements for the past 24 months,
and confirmation notes for the past 60 days from the second quarter of
2017 onwards. This is an extension of the current service where CDP
account holders can access electronic monthly account statements and
confirmation notes online for the past 3 months and 60 days,
With the rollout of this initiative, retail and CDP customers who are
already receiving electronic statements will no longer receive physical
copies of the statements. Retail investors who have not signed up for
internet trading accounts or CDP Internet Service will continue to
receive hardcopy statements.
This is an environmentally-friendly measure retail securities brokers
and CDP are collectively embarking on to reduce their carbon
footprint, while offering customers convenience and secure and timely
delivery of their account statements, trade contract details and
confirmations of securities movements.
“Securities firms view this as a positive move, keeping with
technology gives customers easy access to their electronic records,”
said Lim Kok Ann, Chairman, SAS.
“CDP is pleased to be doing our part together with the retail
securities brokers to reduce reliance on postal delivery and encourage
electronic statements. Our customers will enjoy access to their account
information anytime, anywhere, while helping to save paper and protect
the environment,” said Nico Torchetti, Head of Market Services, SGX.
Commenting on this, David Gerald, President and CEO, Securities
Investors Association of Singapore, said “SIAS is pleased that CDP and
the nine local retail brokers are progressing with changing consumer
behaviour, and we welcome the promotion of e-statements, while
retaining the option to receive hardcopy statements to cater to the
preference of different investor profiles. This is a customer-centric
move on both the retail brokers and CDP’s part.”
Retail investors will receive notification alerts via email or SMS
from their securities brokers and via email from CDP when their
electronic statements are ready.
The electronic statements and notification alerts will be available
at no cost. If retail investors wish to continue to receive physical
copies, they may send the request to their securities brokers or CDP at
Retail investors who wish to receive electronic statements, but do
not have internet trading accounts or have yet to sign up for the CDP
Internet Service, can contact their securities brokers or CDP for
Retail investors are also advised to contact or refer to the websites
of their securities brokers and CDP for more information on this
initiative and updates on implementation dates. The websites and contact
details of the retail securities brokers and CDP are appended in
Retail Securities Brokers from the Securities Association of Singapore
Online E-Learning Portal to Educate Retail Customers on Unlisted Specified Investment Products
The Association of Banks in Singapore (ABS) and Securities
Association of Singapore (SAS) today launched an online e-learning
portal on unlisted Specified Investment Products (SIPs). SIPs are
investment products which contain derivatives or have features and risks
that are relatively more complex. The e-learning portal was jointly
developed by ABS and SAS as an industry initiative.
Investors can access the E-Learning Portal for Investors at no charge and at their own time and pace. The portal at http://sips.abs.org.sg/
captures the key features and risks of the unlisted SIPs to allow
retail investors to better understand such products. There is an
assessment at the end of each module. Investors can still invest in
unlisted SIPs with suitable advice without undergoing this assessment.
Financial intermediaries conduct the Customer Knowledge Assessment
(CKA) to assess if a retail investor understands the features and risks
of unlisted SIPs. Even if an investor passes the assessment, financial
intermediaries should advise the investor on product suitability before
he makes an investment decision. Investors can choose not to receive
advice or act against advice given, having been alerted to the
consequences of doing so.
Upon passing an assessment, investors will receive a certificate via
email which they can present to their financial intermediaries for the
purposes of the CKA. This complements the existing e-learning module
developed by the Singapore Exchange (SGX) for listed SIPs and will allow
investors to educate themselves on all SIPs at their convenience.
The ABS-SAS e-learning portal offers 5 modules:
(a) Foreign Exchange Margin Trading;
(b) Contracts For Difference;
(c) Structured Deposits and Dual Currency Investments;
(d) Unit Trusts and Investment-linked Insurance Policies;
(e) Structured Products.
Said Mrs Ong-Ang Ai Boon, Director of ABS, “Consumers must not invest
if they do not understand the products’ features and risks. While the
banks and the financial advisory industry are responsible to promote
financial literacy, consumers should also be proactive in making use of
the e-learning portal to educate themselves on any of the modules, if
interested, so as to be able to make informed investment decisions.”
“Financial intermediaries already have existing processes to assess
customer suitability for investing in SIPs. This portal would be helpful
to provide an additional data point in assessing an investor’s
knowledge in unlisted SIPs,” said Ms Melinda Sam, CEO of SAS.
Securities Association Of Singapore Issues Trading Restriction Guidelines
The Securities Association of Singapore (SAS) has issued a set of
industry guidelines for its members when they announce trading
restrictions of any SGX-listed securities.
This initiative arises from a joint consultation by the Monetary
Authority of Singapore and the Singapore Exchange in February 2014,
where ensuring transparency of trading restrictions imposed by
securities intermediaries is among the proposals made to improve trading
practices in the securities market.
Under the SAS Trading Restriction Guidelines, when a member firm
decides to tighten its trading policy to manage its credit risk exposure
to its customers’ trading activities in a particular SGX-listed
security, it will make a public disclosure and provide the rationale for
the trading restriction on its website.
The SAS Trading Restriction Guidelines serve to ensure that
information on trading restrictions is disseminated in a consistent,
fair, orderly and transparent manner for the benefit of the investing
public, as some investors have perceived that such information may have
an impact on market prices.
The public can view the announcements on SAS members’ websites. SAS will also provide links on its website to these announcements to facilitate investor access to the information.
This new initiative takes effect tomorrow.
Contra Trading Is Not The Cause
The Editor, The Business Times
In the past week, there has been significant press coverage on the
now infamous trio of designated stocks – Asiasons Capital, Blumont Group
and LionGold Corp.
The deflation of the bubble created by these three and other closely
associated stocks have widespread impact on the industry and have
affected investors ranging from hedge to long funds and retail traders
alike across various intermediaries such as the private banks,
foreign and local brokers.
There seems to be a misguided perception that contra trading was the singular cause for the bubble.
is evident that a wide spectrum of traders participated in these
counters through various means including leverage via margin accounts or
other forms of leverage via brokers and private bankers.
blame the current woes solely on Contra Trading defies logic when the
extremely high trading volumes were contributed also by other leveraged
means. Why are other forms of trading ie margin or other forms of
collateralized trading not to be blamed?
In fact, a greater
portion of the trading losses may be residing in these leverage accounts
seen in the ST article today on a bank force-selling of a position held
by a prominent Malaysian personality.
Perhaps the crux of the
issue lies not with contra or other forms of leverage trading but the
failure by the industry to recognize and react in good time to the
possibility that certain elements or parties may be seeking to exploit
Arising from this incident, the industry as a whole –
SGX (Singapore Exchange), SAS (Securities Association of Singapore),
SOR (Society of Remisiers) and SIAS (Securities Investors Association,
Singapore) – collectively could be more vigilant in safeguarding our
market from being exploited by various elements which may affect the
integrity of SGX as the market place – to the detriment of our
There should however be a balanced approach to avoid
stifling the market. There are examples of well-timed and self-initiated
intervention by certain participants to try to remove the bubble
pressure building up in some of the counters to lessen the impact on
both investors and the intermediary of a full-blown meltdown.
Blaming the current outcome on contra trading is too simplistic to the point of being naive.
trading has little to do with essentially a gross mispricing of a given
counter. If contra trading is to be blamed then perhaps margin trading
played a greater role in sustaining the bubble as positions can be held
indefinitely as long as margin ratios are maintained. Do we also ban
margin or collateralized trading?
We need therefore to see the wood from the trees.