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3 new changes to CPFIS!

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Old 07-03-2018, 11:35 PM   #1
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3 new changes to CPFIS!

https://mailwizz.rawrglobal.com/inde.../nf603t416b9bb

Dear CPF Member,

CPF Highlights from MOM’s Committee of Supply Speech
In her Committee of Supply speech on 5 March 2018, Second Minister for Manpower Josephine Teo made several announcements related to CPF.
How will these announcements impact you? Read on to find out!
Enhancements to CPF Investment Scheme
(CPFIS)
Three enhancements will be made to better cater CPFIS to members who have the knowledge and time to invest and are prepared to take investment risk.
(1) Introduction of Self-Awareness Questionnaire
A Self-Awareness Questionnaire (SAQ) will be introduced as part of the process of opening a CPFIS account from 1 October 2018. The SAQ is to help members decide whether CPFIS is suitable for them by providing them with feedback on their level of basic financial knowledge.

Members can participate in the CPFIS after taking the SAQ, regardless of the results. CPF members who already have a CPFIS account are not required to but are still strongly encouraged to take the SAQ.
(2) Removal of sales charge for products offered under CPFIS, and
(3) Reduction of maximum wrap fee chargeable on CPFIS investments
To give the financial industry adequate time to adjust, the fee changes will be implemented in two phases.

Changes to CPFIS Fees


Sales charge¹ are upfront fees paid to intermediaries (e.g. financial advisors and distributors) upon the purchase of funds i.e. unit trust or Investment-Linked Policies (ILPs). The sales charge will be removed progressively to reduce the cost of investing for CPFIS members. Investors can already purchase unit trusts on online platforms without paying any sales charge.

Similarly, reducing wrap fees lowers the cost of investing which may improve members’ investment returns. Wrap fees cover advisory services and the costs to maintain the wrap account. The cap on the wrap fees will be lowered to align closer to fees charged by online investment platforms in the cash market.

¹Sales charge can also be in the form of back-end load which is being paid at the point of redemption of units by investors.
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Old 08-03-2018, 09:48 AM   #2
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FSM doesn't charge platform fees on CPFIS investments, so I assumed there was already some regulation in place to prevent such additional charges....
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Old 08-03-2018, 09:50 AM   #3
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There is an article on these changes by investmentmoat few days back to talk about the changes
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Old 08-03-2018, 10:34 AM   #4
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does not affect stock purchase? seem like more for products like unit trust

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Old 08-03-2018, 10:55 AM   #5
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does not affect stock purchase? seem like more for products like unit trust

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Yup, more for funds, ilp that sort. Got me excited when I see lowered fees but not related to individual counters it seems.
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Old 08-03-2018, 11:26 AM   #6
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Yup, more for funds, ilp that sort. Got me excited when I see lowered fees but not related to individual counters it seems.
ya lor disappointed

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Old 08-03-2018, 09:16 PM   #7
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Yup, more for funds, ilp that sort. Got me excited when I see lowered fees but not related to individual counters it seems.
ilp and funds. oso announced co-payment.
the G seems to be favouring insurance companies.
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