Written by Wilfred Ling    Tuesday, 27 December 2011 Complicated but largely unregulated derivatives like mortgage-backed securities (MBS), Credit Default Swaps etc had found its way to ordinary investments such as unit trusts. I recalled in 2008, even money market funds had MBS inside it. Because Investments-linked policies (ILPs) basically invest in underlying unit trusts, even ILPs can be considered complicated. To make things worse, the plain vanilla and simple to understand Exchange traded funds (ETFs) have become complex because a very large number of ETFs these days are synthetic (swap based) with no real underlying securities. In Singapore, investors who wish to invest in ‘complex’ products are required to undergo the Customer Assessment Knowledge (CKA). The CKA aims to protect investors in the light of these complicated products. However, those who wish to buy stocks need not go through the CKA because shares are ‘less complicated.’ I disagree ...  ...