The Association of Banks in Singapore (ABS) and Securities Association of Singapore (SAS) have launched an online e-learning portal on unlisted specified investment products (SIPs) “which contain derivatives or have features and risks that are relatively more complex”, according to Ong-Ang Ai Boon, director at ABS.
The e-learning portal will complement the existing e-learning module developed by the Singapore Exchange (SGX) for listed SIPs, said Boon.
“The portal can satisfy the needs of high risk takers aiming for higher yields, who are aware of the needs in qualification in the investment, and it’s flexible for them to be exposed to the knowledge through the portal,” said Boon. “It has attracted a good number of subscribers and there is also appetite for unlisted products, including structured products.”
The portal will serve as an educational platform for investors who will receive a certificate upon passing the assessment which they will then be able to present to their financial adviser for the purpose of customer knowledge assessment, said Boon.
Investors can invest in unlisted SIPs without passing the assessment as long as they receive “suitable advice” from financial intermediaries about the potential risks of investing in such products, according to the trade bodies.
Banks and the financial advisory industry are responsible for promoting financial literacy, while “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,” said Boon.
The new portal is free and offers five assessment modules, including foreign exchange margin trading, contracts for difference, structured deposits and dual currency investments, unit trusts and investment-linked insurance policies and structured products.
Related stories:
Singapore regulator sets complexity and risk ratings requirements for SPs
Singapore’s financial insurance scheme turns back on structured deposits
Regulation remains biggest hurdle for innovation in Singapore retail SPs