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4/23/2010

MAS asking for views on fund management operations

The MAS is reviewing the rules for fund management here and will like to 'consult the public within the next two weeks on proposals to enhance our regulatory regime, to ensure that it remains sound and responsive to the changing needs of the various stakeholders in the fund management industry'. I just have a few comments on this. The presence of fund management here must be for the good of the industry and not here just to suck away all the money from the innocent local investors by unfair practices in the form of preferential rules and regulations, use of technology, sheer size, unfair advantages etc etc. The MAS must ensure a level playing field for all players, big and small. The current practices of different commission rates, no commission rates for house trades giving them an outrageous unfair advantage over small traders must be reviewed. If this is not change, the small traders do not stand a chance and will be sent to the cleaners like many that are already hung and dried. The use of computer technology, programme trading that give the funds an advantage over the small traders too is grossly unfair. Script lendings for funds to exploit their trading strategies against the small investors is another thing that needs to be reviewed. It is different to say that small investors can also borrow scripts to short the market. The volume and tenacity when funds short the market can create havoc and fear among the small investors. Conflicts of interest is another dicey area that must be addressed. Funds buying and selling against clients or trading against clients interests, churning reports to buy when they are selling or vice versa. More bites against auditors or managers of IPOs to ensure that they do a professional job. So far they are getting away scot free when newly listed companies turned turtle within a few years or even months on listing despite the glowing reports and writeups during IPO launches. There are many more areas that the experts and regulators should know best to take this opportunity to provide a fair and equitable trading platform for all stakeholders, big or small. For the moment, the small traders are dead ducks waiting to be served at the dinner table.

9 comments:

Anonymous said...

What's the jobs of the MAS Experts and Specialists?? Sourcing for views?

And this question extends to National Leaders.

Are they able to lead and guide others when they have to source and hunt for ideas, opinions and views every now and then???

No wonder there are messes everywhere, yet they are never responsible for all the blunders. Why?? Because they only implement your(the people) ideas, so if anything goes awry, they are problems caused by the peoples' ideas mah. Can You blame them??

patriot

Wally Buffet said...

Hehe,

We are very flattered that our views are sought first by the SGX and now MAS as reported by Mr. Bean.

I am not interested in giving any views because it's just academic. I am more interested in being creatively greedy. What's in it for me?

Hehe.

Chua Chin Leng aka redbean said...

True, at the untalented, can we really offer anything useful? If supertalents cannot think of it, how could the ordinary folks?

Just look at the property market, only the ordinary buggers are crying that there is a property bubble, but the supertalents said no.

Anonymous said...

Hedge funds must not be given a licence to kill, ie to clean up the pockets of the small investors. It is criminal if there are allowed to do so. And it is gross negligence and irresponsibility on the part of the authority to let them do so.

Anonymous said...

Provided the authority puts the small investors interest above the big guys.

Just make a guess whose interest they represent?

JeffGoh said...

What about the biggest weapon of wealth destruction for the ordinary men in the street - the introduction of - black hole trading in spore. Cant believe that MAS approved this for SGX

Anonymous said...

Just to repeat Mr Chuas'(Redbeans') Query once more.

WHY DIDN'T THEY CONSULT OR SEEK THE VIEWS OF SINGAPOREANS ON HOW THEY(SINGAPOREANS) WANT TO DO OR WHAT THEY CAN(APPROVED BY THE AUTHORITY) DO WITH THEIR OWN(CITIZENS') CPF MONEY??????

patriot

Anonymous said...

Black pool or dark pool, as long as they are transparent, they are good enough. We stand for transparency.

Chua Chin Leng aka redbean said...

Can blackpool or darkpool be transparent? What they are called are exactly what they are meant to be. It is like saying a fare hike as a fare cut. It is not transparent but just say that it is. No one will challenge such a stand for sure.