Finfluencers required to be licensed

[DevilPlate]

Most people seem OK paying doctors for medical advice and attorneys for legal advice. Although there are still incentive alignment problems in those fields.

I think reasonable, simple disclosure is the first and best medicine. What are the person’s (and firm’s, if applicable) financial and other interests? How do they make money? Do they have a fiduciary responsibility to you, the client? Clients/viewers/readers should know that information up front when they’re interacting with someone who has a material financial or other interest in the advice they’re providing. (Will banks and insurance companies hate this? Probably!) Also, the regulators should be open to the possibility that YouTubers (despite some flaws) could be providing better overall advice than “traditional“ Relationship Managers and Independent Financial Advisors. For example, with YouTubers you (the viewer) can usually pretty quickly figure out who’s paying the presenter because the presenter often reads an advertisement and includes a “use discount code KELV2025 for 3 free trades” offer or similar offer. Any reasonable person would understand that the video is sponsored by that company, and the presenter is being compensated by that company.

Another step the government could take is to open the CPF LRIS. I fundamentally don’t understand the government’s explanation for delaying the LRIS. Over the past several years CPF members could’ve enjoyed broadly excellent returns. Of course there should be reasonable guardrails, but there’s a status quo (the CPF Investment Scheme as presently designed) that’s clearly not as good as it could be. Just create a handful of genuinely low cost target date index funds with automatic dollar cost averaging options (probably selectable fixed and percentage amounts, selectable for both regular and bonus contributions — and a “sweep every dollar above $X“ option) plus anti-active trading guardrails, and let’s go!

Little known Amundi MSCI fund TER 0.1% via Poems.

 

[sky1978]

" This isn't financial advice"
"DYODD"
"This is what I do, not telling you what to do"
"Take it as financial education and entertainment"
Liddat say can go scot free liao.

If the law says food production has to be licensed, can a food factory simply paste a disclaimer on the packaging warning others that the factory is unlicensed and they are buying and eating at their own risk?

There are 2 types of scot-free, free from criminal and civil liability. If the law states that an act is illegal, will putting disclaimers overwrite the law and turn an illegal act into a legal one?

 

[DevilPlate]

If the law says food production has to be licensed, can a food factory simply paste a disclaimer on the packaging warning others that the factory is unlicensed and they are buying and eating at their own risk?

There are 2 types of scot-free, free from criminal and civil liability. If the law states that an act is illegal, will putting disclaimers overwrite the law and turn an illegal act into a legal one?

Not apple to apple. anyway a good laugh

All regulated financial products also got many such disclaimers also what.

The main issue is licensed FA/Bankers unable to recommend unbiased financial products to their customers thus far. Like others has mentioned that their industry knowledge is also questionable and most probably limited to their in house products.

 

[royalmix]

"Simply adding a disclaimer such as “this is not financial advice” does not absolve one from legal liabilities, the authority said. Those unsure should consult MAS’ Guidelines on the Provision of Financial Advisory Service or seek legal advice."

https://www.straitstimes.com/busine...have-given-financial-advice-without-a-licence

1. How do I share responsibly?​

• Present accurate information, explain both risks and rewards clearly.
• Be mindful of your impact; don’t exploit FOMO or induce panic.
• Consider your followers’ financial interests and well-being.

2. What are some financial tips that I can consider sharing with my followers?​

• Encourage informed decision making.
• Emphasise fundamentals like understanding personal risk tolerance.
• Conduct independent research; get professional advice when needed.
• Encourage budgeting and caution against overspending.
• Advise reading the fine print and T&Cs.

 

[DevilPlate]

"Simply adding a disclaimer such as “this is not financial advice” does not absolve one from legal liabilities, the authority said. Those unsure should consult MAS’ Guidelines on the Provision of Financial Advisory Service or seek legal advice."

https://www.straitstimes.com/busine...have-given-financial-advice-without-a-licence

But then licensed FA adding such disclaimers can siam legal liabilities or not?

 

[sky1978]

But then licensed FA adding such disclaimers can siam legal liabilities or not?

Which type of legal liabilities? Civil or criminal?

If they are already licensed, then from the perspective of conducting licensed activities, they already comply with the law.

If it is about civil liability and clients want to sue for damages, as long as the client is rich enough and willing to pay, he/she can always find lawyers to do that and then go into the nitty-gritty details as to whether the disclaimer is effective. e.g whether it complies with the UCTA.

https://singaporelegaladvice.com/law-articles/writing-website-terms-and-conditions-singapore/

 

[DevilPlate]

Which type of legal liabilities? Civil or criminal?

If they are already licensed, then from the perspective of conducting licensed activities, they already comply with the law.

If it is about civil liability and clients want to sue for damages, as long as the client is rich enough and willing to pay, he/she can always find lawyers to do that and then go into the nitty-gritty details as to whether the disclaimer is effective. e.g whether it complies with the UCTA.

https://singaporelegaladvice.com/law-articles/writing-website-terms-and-conditions-singapore/

So boils down to the profile of the customers liao.

Common man in the street like us how?

 

[DevilPlate]

OK cfm plus chop he is Not one of the 5

 

[BBCWatcher]

Little known Amundi MSCI fund TER 0.1% via Poems.

Amundi's "A12S" global stock index fund (via POEMS) is at least a respectable option for long-term CPF Investment Scheme (OA) dollars. But I think a sensible CPF LRIS would include simple (and still low cost) target date index funds (no rebalancing required!), dollar cost averaging and "auto sweep" features, and anti-active trading guardrails, as notable examples. There'd be sensible "mass market" features, in other words.

These LRIS target date index funds would presumably include SGX-listed stocks (maybe up to 1/3rd of the stock holdings, and across the top 50 counters perhaps; but I wouldn't overweight the SGX any more than that), global stocks including emerging markets, and bonds. Conceivably in periods when bond prices are high (weighted average YTM at 2.6% or below "long enough," let's suppose) the bond portion could automatically revert to OA's 2.5% floor rate. Then, when bond prices fall (yields rise), the bond allocation could be reclaimed. I'd have to think about how automatically swapping the bond portion in/out of OA would work in practice, but if it could be done it'd be a nice feature.

I don't see why banks should collect entry, exit, and quarterly fees for a CPF LRIS along the lines I describe.

 

[sky1978]

So boils down to the profile of the customers liao.

Common man in the street like us how?

Common man, if dealing with licensed FA and institutions, can go FIDRec subject to a limit. That is one of the benefits of a licensing regime to the common man.

 

[DevilPlate]

Amundi's "A12S" global stock index fund (via POEMS) is at least a respectable option for long-term CPF Investment Scheme (OA) dollars. But I think a sensible CPF LRIS would include simple (and still low cost) target date index funds (no rebalancing required!), dollar cost averaging and "auto sweep" features, and anti-active trading guardrails, as notable examples. There'd be sensible "mass market" features, in other words.

These LRIS target date index funds would presumably include SGX-listed stocks (maybe up to 1/3rd of the stock holdings, and across the top 50 counters perhaps; but I wouldn't overweight the SGX any more than that), global stocks including emerging markets, and bonds. Conceivably in periods when bond prices are high (weighted average YTM at 2.6% or below "long enough," let's suppose) the bond portion could automatically revert to OA's 2.5% floor rate. Then, when bond prices fall (yields rise), the bond allocation could be reclaimed. I'd have to think about how automatically swapping the bond portion in/out of OA would work in practice, but if it could be done it'd be a nice feature.

I don't see why banks should collect entry, exit, and quarterly fees for a CPF LRIS along the lines I describe.

The main hurdle on policy makers is the arduous task of public education of such schemes through good and bad times.

You see even arguably simpler CPFLife already garnered so much controversy and frustrations.

 

[DevilPlate]

Common man, if dealing with licensed FA and institutions, can go FIDRec subject to a limit. That is one of the benefits of a licensing regime to the common man.

Do u happen to know of successful cases?

 

[ahnyaahnya]

I am rather confused by the minister's statement. So if someone in the forum says something like this:

"THIS IS NOT FINANCIAL ADVICE.

A great and safe retirement plan is to buy IWDA for stocks, and MBH for bonds. Rebalance yearly based on 110 minus your age and chill at the beach"

Question: Does one needs to be licensed to make the above remarks?

Depends on whether he regularly/ frequently makes recommendations .

 

[sky1978]

Do u happen to know of successful cases?

There are published statistics on claims resolved by mediation, by adjudication (with awards) and by adjudication (without award). The process is mediation first; if the outcome is unsatisfactory, then it moves to adjudication.

https://www.fidrec.com.sg/knowledgebase/article/KA-01305/en-us

 

[DevilPlate]

There are published statistics on claims resolved by mediation, by adjudication (with awards) and by adjudication (without award). The process is mediation first; if the outcome is unsatisfactory, then it moves to adjudication.

https://www.fidrec.com.sg/knowledgebase/article/KA-01305/en-us

Wow high % of successful claims against FA/insurance agts

 

[DevilPlate]

Depends on whether he regularly/ frequently makes recommendations .

Maybe also depends whether the person making such comments stand to gain any monetary gains?

 

[s0crates]

Little known Amundi MSCI fund TER 0.1% via Poems.

That's a direct product push, nothing to do with mapping individual life needs against an investment product.

 

[s0crates]

Kelvin learns investing, sgbudgetbabe, honeymoneysg and financial coconut stepped out and said they weren't warned lol. Anyone still think MAS being aboveboard with the entire process?

LOL encouraging self censorship through fear!

 

[ahnyaahnya]

Maybe also depends whether the person making such comments stand to gain any monetary gains?

That's not a maybe

 

[bruiser69]

Kelvin learns investing, sgbudgetbabe, honeymoneysg and financial coconut stepped out and said they weren't warned lol. Anyone still think MAS being aboveboard with the entire process?

LOL encouraging self censorship through fear!

Can believe them? Afterall MAS not going to make public