I got this news that to stop us investors from unknowingly invest in products without knowing what the heck it is in this product, they are making us take this 1 hour course and test.
Failure which you cannot trade shares and buy unit trust and ETFs!
Your broker, insurance advisor and agents are exempted from this because apparently they know more than you do!
Full details can be found in this link here > https://onlineeducation.sgx.com
Q1: What are Specified Investment Products? How are they different from other investment products?
Specified Investment Products are likely to contain derivatives, and may have features, and risks that can be more difficult for retail consumers to understand. Examples include structured notes, exchange traded funds, exchange traded notes, investment linked insurance policies, warrants and options, futures, and certificates. In fact, any investment product other than those listed below and any investment product that is only listed on an overseas exchange is classified as a Specified Investment Product.
b) Fully-paid depository receipts representing shares
c) Subscription rights pursuant to rights issues
d) Company warrants
e) Units in business trusts
f) Units in real estate investment trusts
g) Debentures (other than asset-backed securities & structured notes)
h) Life insurance policies (other than investment-linked life insurance policies)
i) Contracts or arrangements for the purpose of foreign exchange trading (other than derivatives of foreign exchange contracts and leveraged foreign exchange trading)
So the stupid thing about this is shares suppose to be consider safer? REITs safer?
I see this as a sign for insurance advisor to tell you “You are not well verse in this! I am! let me take care of your money! I will advise you which structured product and unit trust to buy!” “Here this unit trust good! this ILP is good!”
I get what they are doing but this could easily be distorted to the benefit of sales people.
And furthermore it makes people who are lazy to learn becomes more deter from learning!