S$7.8 Million Losses from Trading with Unlicensed Platforms in 2017 in Singapore
Monetary Authority of Singapore and Commercial Affairs Department (CAD) of Singapore Police Force issued a statement advising public to exercise extreme caution when dealing with unregulated online trading platforms as S$7.8 Million were lost from trading with unlicensed platforms in 2017 in Singapore.
“S$7.8 Million Losses from Trading with Unlicensed Platforms in 2017 in Singapore”
The unregulated trading platforms allow investors to trade a wide range of products, such as foreign exchange, shares, commodities and binary options. In 2017, the CAD received 142 reports from consumers who lost a total of S$7.8 million from trading with these unlicensed platforms, up from 40 reports in 2016.
As most unregulated online trading platforms tend to be located outside Singapore, investors will face challenges in pursuing claims against operators based overseas.
Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS:
“There is no regulatory safeguard for investors who choose to transact on unregulated trading platforms. There is greater risk of fraud when investors transact on platforms operated by unregulated entities whose backgrounds and operations cannot be easily verified. Before committing to an investment, consumers should always ‘ASK, CHECK, CONFIRM’ to avoid any potential scams.”
David Chew Siong Tai, Director CAD:
“Consumers should always be cautious when they come across an investment opportunity that promises high returns with assurances of little or no risks. These are likely to be a scam; if it is sounds too good to be true, it most probably is.”
MAS licenses certain online trading platforms that offer investment products that are regulated under the Securities and Futures Act (SFA). These products include shares, debentures, futures and exchange-traded funds. Trading platforms that are licensed by MAS adhere to regulatory safeguards such as disclosure requirements on investment products that are offered to consumers. Regulated platforms are also subjected to conduct rules, to ensure that they deal fairly with their customers. Such safeguards protect investors’ monies and assets when they are dealing with financial institutions.
Some online trading platforms are operated by entities which are neither licensed nor regulated by MAS. These unlicensed platforms engage consumers via online advertisements, unsolicited phone calls, emails or messaging apps. In some instances, events or seminars are conducted to promote the platform. Existing customers are also offered commission to entice new customers to trade on the platforms.
About Monetary Authority of Singapore
Monetary Authority of Singapore (MAS) is Singapore’s central bank, which was formed back on 1 January 1971. It promotes sustained, non-inflationary economic growth through appropriate monetary policy formulation and close macroeconomic surveillance of emerging trends and potential vulnerabilities. MAS manages Singapore’s exchange rate, foreign reserves and liquidity in the banking sector. It is also an integrated supervisor overseeing all financial institutions in Singapore — banks, insurers, capital market intermediaries, financial advisors, and the stock exchange.
- Origin : Singapore
- Assets : USD 385.12 billion
- Revenue : USD 1.89 billion
Official Website: www.mas.gov.sg
News & Media: Press Release
Updated on 8th August 2016