MAS says: The second key role is to help clients understand the specific products they invest in. In this, financial advisers play an important leveling role in a disclosure-based regime such as the one in Singapore. In a disclosure-based regime, the issuer or distributor of a financial product has the obligation to disclose all critical information about the product, but the onus is on the investor to understand this information, place these in the context of the investment environment and then arrive at a judgement on whether this is suitable for them or not. The reality, however, is that investors have different starting points, with degrees of financial knowledge and experience, and thus will likely have different capacities to process the information disclosed. Professional financial advice fills in the knowledge gap for the less knowledgeable investors
Wilfred’s comments :
In the world of extreme complexity, I find the disclosure regime ......
