Remisier made 2.3m commission in 2013 but made bankrupt by penny stock crash in same year

h.y.o.m

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HENRY Tjoa made $2.3m in commission income in 2013. He was star remisier of Phillip Securities. But he was made bankrupt by the penny stock crash in the same year because his clients couldn't pay for their stock market losses and their debts became his debt. He declared bankruptcy in 2017 but the cause of the bankruptcy is traced to the 2013 crash.

This shows how treacherous the financial markets can be. You can make tons of money and be made bankrupt all within the same year. It highlights how important risk control is when speculating in the markets.

For remisiers, it's hard to control their risk unless they are able to assess the credit quality of their clients. I don't think clients are willing to reveal private information of their financial information to their remisier. So, without this information, the remisier will not be able to control their risk. From a risk perspective, it doesn't make financial sense to be a remisier. In fact, it may even make more financial sense to be jobless than be a remisier, given the risks and low income. Low liquidity in Singapore stock market and migration to DIY online trading accounts today is depressing commission income of remisiers. I expect more remisiers to leave this profession.

https://www.businesstimes.com.sg/co...as-made-at-least-half-a-dozen-people-bankrupt
HENRY Tjoa was Phillip Securities' star remisier with S$2.3 million generated in commission income in 2013. But the self-employed broker was hit by the penny stock crash in October that year when his clients could not pay up for their trading losses totalling over S$12 million.
Mr Tjoa declared himself a bankrupt, losing not only his trading representative licence as a result of being insolvent but also his remisier position.
This was what the High Court heard in the first tranche of the long-running trial of John Soh Chee Wen, 59, and Quah Su-Ling, 55. The Malaysians are accused of orchestrating a secret web of 189 accounts belonging to 60 individuals and companies in August 2012 to October 2013, with the aim of artificially inflating the prices of Blumont Group, Asiasons Capital (now Attilan Group) and LionGold Corp, collectively known as BAL.
 
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havetheveryfun

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For remisiers, it's hard to control their risk unless they are able to assess the credit quality of their clients. I don't think clients are willing to reveal private information of their financial information to their remisier. So, without this information, the remisier will not be able to control their risk. From a risk perspective, it doesn't make financial sense to be a remisier. In fact, it may even make more financial sense to be jobless than be a remisier, given the risks and low income. Low liquidity in Singapore stock market and migration to DIY online trading accounts today is depressing commission income of remisiers. I expect more remisiers to leave this profession.

they have to reveal, if they dont reveal by right there should be a cap on their trading limits. its partly the remisier's own fault for being greedy.

even if you trade on your own without any remisier, you also need to send certain documents to be able to raise your trading account limits.
 

h.y.o.m

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they have to reveal, if they dont reveal by right there should be a cap on their trading limits. its partly the remisier's own fault for being greedy.

even if you trade on your own without any remisier, you also need to send certain documents to be able to raise your trading account limits.

Thanks for pointing out. Yes, it is logical that for clients who have trading limits up to 7-digit figure, the remisier will demand more private financial information to protect himself.

For most retail investors who do not have huge trading limit, they do not have to reveal much private financial information.

Nowadays, with cash account, it's no longer an issue. Clients trade up to the amount they deposit in the stock account. Lower risk for broker -> cheaper brokerage fees for clients.
 

Merg91

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Remisers. Full stop.
If the clients punt frequently and act big, don't count the commission made earlier yet.
 

MikeDirnt78

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Gone were the days when remisiers made big money.

That time SG was a fast growing economy.

Now the economy has matured.
 

sanzhu

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HENRY Tjoa made $2.3m in commission income in 2013. He was star remisier of Phillip Securities. But he was made bankrupt by the penny stock crash in the same year because his clients couldn't pay for their stock market losses and their debts became his debt. He declared bankruptcy in 2017 but the cause of the bankruptcy is traced to the 2013 crash.

This shows how treacherous the financial markets can be. You can make tons of money and be made bankrupt all within the same year. It highlights how important risk control is when speculating in the markets.

For remisiers, it's hard to control their risk unless they are able to assess the credit quality of their clients. I don't think clients are willing to reveal private information of their financial information to their remisier. So, without this information, the remisier will not be able to control their risk. From a risk perspective, it doesn't make financial sense to be a remisier. In fact, it may even make more financial sense to be jobless than be a remisier, given the risks and low income. Low liquidity in Singapore stock market and migration to DIY online trading accounts today is depressing commission income of remisiers. I expect more remisiers to leave this profession.

https://www.businesstimes.com.sg/co...as-made-at-least-half-a-dozen-people-bankrupt

No wonder I wonder why he stopped sending me calendar
 
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