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.