Latest news with #ChocolateFinance
Business Times
7 days ago
- Business
- Business Times
Clicks and credibility
FINANCIAL influencers (or 'finfluencers') made the news here recently when two of them posted comments that sparked a flurry of withdrawals from financial platform Chocolate Finance, leading the company to halt instant withdrawals. The incident was highlighted in Parliament in April when Sengkang GRC Member of Parliament He Ting Ru filed a question on the matter. The Workers' Party MP asked about safeguards for the public against financial advice from non-licensed individuals, and whether there has been a rise in complaints against finfluencers. In response, Alvin Tan, Minister of State (Trade and Industry) clarified that finfluencers providing advice 'must be regulated under the Financial Advisers Act and must first be appointed as a representative by a licensed financial advisory firm'. Even if finfluencers are not providing financial advice, they may be liable for an offence under the Securities and Futures Act if they make false or misleading statements on any capital markets products, said Tan, who is also a member of the Monetary Authority of Singapore (MAS) board. He noted that there have been eight complaints against finfluencers so far this year, up from an average of five complaints a year in the last five years. Most of the complaints this year relate to the Chocolate Finance episode, he said. To the average person, five or eight complaints a year may seem relatively low for now. But given the relentless rise of social media in tandem with rapid changes in how people consume news and advice, the power of finfluencers is likely to grow. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up How can investors better navigate these trends and make better, more informed investment decisions? For regulators, what are some areas to note to help them better understand retail investors' preferences and behaviours, and to manage finfluencers? In this regard, CFA Institute published a report, Clicks and Credibility: Understanding Finfluencers' Role in Investment Decisions in March 2025. While the report was based largely on data from India, there are some interesting and important lessons relevant to the Singapore market and useful for retail investors here. The report, which included a survey of 1,615 investors and content analysis of 51 influencers in India, reveals critical insights into retail investor behaviour, content practices of finfluencers, and actionable recommendations. India's capital markets regulator SEBI (Securities & Exchange Board of India) defines finfluencers as individuals who provide information on financial topics such as stock investment, personal finance, banking, insurance, and real estate through social media platforms such as Instagram, Facebook, YouTube, LinkedIn, and X. While the exact number of finfluencers in India is difficult to gauge, estimates indicate that there are over 3.5 million social media influencers, with a significant portion focusing on financial content. Like MAS, SEBI too recognises the role that influencers play in promoting financial literacy. However, the Indian regulator is also keenly aware of the misinformation and misleading advice that often accompanies this rising trend. Over the past year, SEBI has been particularly active in enforcement, issuing orders for content removal, imposing bans, and levying hefty penalties in cases involving misconduct. Significant impact of finfluencers More than eight in 10 (82 per cent) followers of Indian finfluencers reported making investments based on their advice, with seven in 10 among them claiming to have notched profits. However, the CFA Institute report cautions that such a rosy result could have been achieved on the back of positive Indian stock market performance over the last few years, where broader market indices have performed well, and trends such as the superior performance of small and mid-cap stocks compared to large caps. In addition, followers who have been duped could have been unwilling to admit that they have been cheated. Lack of disclosures and risk warnings According to the study, more than 6 in 10 (63 per cent) finfluencers fail to adequately disclose sponsorships or financial affiliations. This is a concern and reflects poorly on whether sufficient disclosure is made regarding conflicts of interest. In addition, while only 2 per cent of finfluencers are SEBI-registered, 33 per cent provide explicit stock recommendations, according to the report. So how can retail investors better protect themselves amid the proliferation of online advice? The CFA Institute report recommends the following: Verify licensing status: Always seek financial advice only from influencers registered with your local regulator. Verify their representative number and credentials to ensure they are authorised to provide investment recommendations. This step helps maintain regulatory accountability and adherence to ethical and professional standards. Assess risk disclosures: Licensed professionals must disclose the risks associated with investments and provide accurate, unbiased information. Avoid influencers who fail to provide proper risk warnings or disclaimers. Independently verify claims and carefully assess the suitability of recommendations based on your financial goals – especially when dealing with high-risk financial products. Differentiate between educational and promotional content: Investors must distinguish between educational material, general market awareness, and direct investment recommendations. If an influencer is engaged solely in financial education, they must not give direct or indirect investment advice unless they are a registered adviser. Be particularly cautious of influencers presenting investment recommendations under the guise of educational content or financial awareness. For instance, SEBI has recently mandated that individuals engaged purely in education cannot use past three-month market price data to imply future stock performance or make investment recommendations. Scrutinise promotional content: Be wary of promotional content that lacks transparency regarding financial incentives, sponsorships, or affiliations. In Singapore, MAS expects financial institutions which employ finfluencers to advertise their products or services, to ensure that the finfluencers present information in a clear and balanced format that highlights key features and risks. Do more homework: Before acting on any stock recommendations from finfluencers, retail investors should still independently conduct thorough due diligence. Keep in mind that licensed finfluencers are required to disclose any conflicts of interest and promote transparency. Stay vigilant against unverified stock tips and be cautious of manipulative practices such 'pump and dump' schemes. In a 'pump and dump' scheme, fraudsters typically spread false or misleading information to create a buying frenzy that will 'pump' up the price of a stock, allowing them to then 'dump' shares of the stock at the inflated price. Too good to be true? Probably: Finally, be wary of unrealistic claims. Exercise caution with finfluencers who promise guaranteed or exaggerated returns. Ensure that the information you rely on is accurate, credible and aligned with your financial goals and risk appetite. Always prioritise licensed entities and approach online financial content with prudence and scepticism. The full report by CFA Institute can be found here:
CNA
17-05-2025
- Business
- CNA
Why regulating ‘finfluencer' content isn't going to save us from making bad money moves
For most of us, trying to figure out how to best manage our money can be overwhelming. Just like how most of us learnt how to spend and save our primary school allowance from our parents, we seek out people who have already done it before us as a guide. We watch videos, browse forums and devour blogs, hoping to learn from others' experiences (and, hopefully, avoid their mistakes). It's no wonder that 'finfluencers' – online creators specialising in content about financial literacy and breaking down complex financial concepts for the layman to understand – have become so popular in recent years. In an October 2024 survey by MoneySmart, over half of Singaporeans aged 18 and above said they relied on platforms like YouTube, Instagram, Facebook, and TikTok for financial advice, preferring them over traditional sources such as family, friends, and financial advisers. The internet has made financial advice more accessible than ever. We cannot ignore the benefits of such resources, especially if we were never taught these things in school or at home. But just as we're encouraged to consult doctors rather than relying solely on health advice found on the internet, no one should be relying on financial advice online for their own financial decisions. THE CHOCOLATE FINANCE WAKE-UP CALL In March, Chocolate Finance customers experienced a temporary liquidity delay following mass withdrawals caused by online panic. The financial services company had marketed themselves as a more attractive high-yield alternative to put one's cash in, boasting returns as high as 3-5 per cent per annum through a managed investment portfolio. It gained popularity quickly, receiving favourable reviews on social media platforms and Internet forums. However, when a few YouTube videos about several prominent finfluencers withdrawing their Chocolate Finance funds went viral, it led customers to worry if the platform was truly safe, resulting in massive withdrawals within a day or so. The company could no longer afford to continue supporting instant withdrawals, leading to further panic when many users found themselves told to wait a few days before their funds would land in their bank accounts. None of the public's initial fears about the platform materialised – all customers who requested withdrawals during the height of the meltdown, between Mar 10 and Mar 18, got their money back within a week or two. However, the incident raised questions about how online sentiment could so quickly lead to a liquidity crunch in a regulated financial firm. The Chocolate Finance saga highlighted a broader issue with personal finance today: That so many of us seem to have a tendency to make snap investment decisions based on little more than a short video or blog post. NO SUCH THING AS ONE-SIZE-FITS-ALL FINANCIAL ADVICE A fresh graduate saving for a wedding should not follow the same investment strategy as someone nearing retirement. A dual-income household with no kids will have different insurance needs from a single parent. What works for one person might be unsuitable – or even harmful – for another. Yet, much of the financial content online presents examples, scenarios, or success stories without always highlighting these distinctions. To be fair, we cannot realistically expect all content to do so sufficiently. Such advice, designed and packaged for online consumption, must be broad so as to appeal to the largest possible group of viewers or readers. This doesn't invalidate such content, but it does call for critical thinking from us as consumers. Short videos and posts can only convey so much, and even the most well-meaning advice may not apply to everyone's situation. 'Save 30 per cent of your salary' seems like sound advice, but for someone already struggling to make ends meet, this is hardly feasible. This is not a flaw of online financial advice, but rather a reminder that all advice, whether found online or offline, must be interpreted through the lens of individual context. Just because someone posts a video on TikTok talking about how they grew their portfolio by investing in crypto doesn't mean you should blindly follow suit. REGULATIONS ALONE CANNOT SAVE US In response to the Chocolate Finance fallout, many have called for tighter regulations on finfluencers and financial content online. There's good intent behind this. Financial advice should always be responsibly given, and content creators who promote products should be transparent – especially if there's a commercial relationship involved. But regulation alone isn't the fix. Even before the advent of social media, licensed professionals have been known to cross ethical lines or mislead their clients. A Great Eastern insurance agent was jailed last year after misappropriating over S$300,000 from his clients by forging insurance documents and redirecting funds. In 2018 and 2019, two former personal bankers with UOB separately received jail sentences for cheating their clients of hundreds of thousands of dollars. Their victims weren't deceived by TikTok videos and Instagram carousels – they were misled by credentialed individuals wearing suits, working in bank branches and corporate offices. Official qualifications and titles do not guarantee integrity either. Misalignment of incentives, pressure to meet sales targets, or personal misconduct can lead to poor advice – even in regulated environments. The fact is that bad financial advice doesn't just live online. It can come from anywhere, even your well-meaning aunt at family gatherings. The more empowering and sustainable approach is to understand that the only person who will always have your best financial interests at heart is yourself. TAKING RESPONSIBILITY FOR OUR DECISIONS Taking ownership of your finances means more than just watching YouTube videos or reading a few blog posts. We can't always blame someone else for our decisions, even if they had influenced our thinking. Six years ago, I bought a resale Housing and Development Board (HDB) flat because I was worried about stretching my finances too thin, despite my property agent advising that the resale condominium across the street was a much better deal. Six years on, I'm watching the owners of the condo unit across the street walk away with a S$400,000 gain, while my HDB flat has barely appreciated in value. Despite my regrets, I'm in no position to blame my agent. Ultimately, I made the call for myself. It can be a hard pill to swallow, but what we choose to do with our money is up to us – not that influencer with the slick Instagram feed, or the financial adviser pushing you to buy a policy by month's end, and definitely not the strangers in Telegram groups hyping up the next 'sure win' investment. So the next time you see a viral TikTok about a "sure-win" investment, remember this: Not all financial advice is bad, but not all financial advice is meant for you. Don't just ask yourself 'Is this good?' Ask yourself: 'Is this good for me?' We must stay curious, choose wisely and never outsource our personal financial responsibility to anyone else.
Straits Times
12-05-2025
- Business
- Straits Times
Digital investment platforms set to stay despite concerns
Digital finance platforms like Chocolate Finance open up options to individuals who cannot access bank products because they do not meet certain net worth requirements. PHOTO: LIANHE ZAOBAO SINGAPORE – Faith in digital investment platforms took a knock in March when investors rushed to pull their cash out of Chocolate Finance, but these platforms are here to stay, although not all of them will prevail. Their appeal is easy to see, as Professor Jan Ondrus from Essec Business School's Asia-Pacific campus noted. Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
19-03-2025
- Business
- Yahoo
Issue #17: What's Happening This Week? Record $1.52m Flat Sale, Chocolate Finance Processes 90% of Delayed Withdrawals
This week, we're looking at big numbers. A 4-room flat in the coveted Pinnacle@Duxton has just smashed records with a $1.52m sale, over 2,000,000 of Lady Gaga's Little Monsters showed up in the virtual queue for her concert tickets, and Singapore's private home sales soared to a 13-year high for Feb 2025. Plus, what happened to all those Chocolate Finance customers whose withdrawal requests got delayed? All that and more in our bite-sized roundup of the week's biggest finance updates—so you can stay informed without sifting through the fine print. Ticket demand for Lady Gaga's Mayhem tour hit over 2 million on the first day of presales, with some fans reporting a peak of 3.5 million in the virtual queue. After pausing instant withdrawals, Chocolate Finance has now cleared 90% of withdrawal requests from 10 Mar and aims to process the rest by 19 Mar. Standard Chartered adds free scam insurance (one year) and better interest rates for seniors with the revamped MyWay savings account. Singapore's private home sales hit 13-year February high, with 1,575 new private homes sold—driven by Parktown Residence and Elta. Pinnacle@Duxton breaks another HDB record with $1.52m flat sale—a 49th-floor, 4-room unit that sold for $1,502 psf, the highest per-square-foot price ever for an HDB flat. Grab moves to acquire GoTo, the operator behind Gojek—if the deal happens, prices, promotions, and competition in ride-hailing could shift. Employment in lower-skilled sectors declined while more Singaporeans land higher-skilled jobs in 2024, with 8,800 more residents securing jobs, mainly in finance, IT, and healthcare, while Want more details? Let's dive in. Psst, missed last week's issue? View all past editions of What's Happening This Week? to catch up. Presales for Lady Gaga's Asia-exclusive Mayhem tour in Singapore began on 18 Mar 2025, and over 2,000,000 Little Monsters showed up in the virtual queue. In fact, numbers reportedly peaked at 3.5 million! Sky-high demand aside, the presale also raised eyebrows among fans when no seating plan or official ticket prices were revealed ahead of time. Fans finally saw seat prices only when the sale began, with tickets ranging from $148 to $368 and VIP packages costing up to $1,348. Oof. To top it off, many also noticed higher-than-usual booking fees, adding $10 to $20 per ticket. Didn't manage to get a ticket? The Mastercard presale that began on Tuesday, 18 Mar 2025 is still on, with 3 more presales coming up this week: Lady Gaga in Singapore 2025—How to buy tickets Presale / Sale Date and time Who's eligible Mastercard Presale Start: 18 Mar 2025, 10 am End: 20 Mar 2025, 959 am Mastercard cardholders via their website. You must purchase your tickets via Mastercard. Klook Presale Start: 19 Mar 2025, 10 am End: 21 Mar 2025, 959 am Klook members through the Klook app Singapore Airlines KrisFlyer Presale Start: 20 Mar 2025, 12 pm End: 21 Mar 2025, 1159 am KrisFlyer members. Registrations closed on 13 Mar 2025. Those who registered should have received their unique access code via email by 18 Mar 2025. KrisFlyer Reserve Sale (redeem miles for concert tickets) 20 Mar 2025 at the following times: – 12 pm for all PPS Club members, Solitaire PPS Club supplementary cardholders, and KrisFlyer Elite Gold members – 3 pm for all KrisFlyer and KrisFlyer Elite Silver members KrisFlyer members. Find out more here. Live Nation Presale Start: 20 March 2025, 12 pm via End: 20 Mar 2025, 1159 pm Live Nation members (membership is free) General sale 21 March 2025, 2 pm Everyone Good luck, Little Monsters! View this post on Instagram A post shared by Chocolate Finance (@chocolatefinance) Last week, we talked about Chocolate Finance pausing instant withdrawals after a significant number of customers began withdrawing their funds. Since that surge, the financial services platform has (mostly) caught up. In an update on Monday, 17 Mar 2025, Chocolate Finance reported that they've processed 90% of the redemption requests made on 10 Mar 2025, the day they halted instant withdrawals. They had also completed 73% of the redemption requests they received on 11 Mar 2025. Chocolate Finance stated that all remaining requests that were made on 10 and 11 Mar were scheduled to be completed by 18 and 19 Mar respectively. If you made a redemption request on or after 12 Mar 2025, expect to wait the standard 3 to 6 business days for your request to be processed. Singapore's private home sales soared to a 13-year high for Feb 2025, driven by the strong demand for 2 newly launched suburban condos—Parktown Residence in Tampines and Elta in Clementi. Developers sold 1,575 units, a 10-fold increase from Feb 2024 and a 45.4% jump from Jan 2025. Whew. Parktown Residence stole the show, moving 1,041 units (87% of its total), thanks to its integrated development status, direct access to an upcoming MRT station, and appeal to HDB upgraders. Elta also saw strong demand, selling 65% of its units, with 2-bedroom apartments almost fully taken up. What's coming up? Market confidence is expected to remain strong, with upcoming launches such as Lentor Central Residences and Aurelle @ Tampines sustaining buyer interest. Experts predict home prices will continue rising in 2025, supported by lower home loan interest rates and a strong supply of new launches—but buyers are likely to remain selective. ALSO READ: Downpayment for Condo: How Much Do First-Timers Need in Singapore? (2025) Speaking of soaring home prices, another million-dollar HDB sale has made waves—this time at Pinnacle@Duxton, where a four-room flat sold for a record-breaking $1,502 psf. The 49th-floor unit was snapped up for $1.52 million, a massive jump from its original $378,000 price tag 15 years ago. The buyers, a 41-year-old couple with a child, forked out $108,000 in cash above the HDB valuation of $1.41 million. Pinnacle@Duxton, a 50-storey landmark near the CBD, remains one of Singapore's most coveted HDB estates, with high demand and limited supply driving up prices. This sale follows other million-dollar transactions at the estate, including a three-room flat for $1.4 million and a five-room unit for $1.55 million. With public housing supply in the downtown area limited, analysts expect prices to keep rising, making Pinnacle@Duxton a hot favourite among HDB upgraders and investors. Singapore's Grab is making moves to acquire its Indonesian rival GoTo, which operates Gojek, as both companies struggle with slower growth amid rising inflation and cautious consumer spending. Reports say Grab is now reviewing GoTo's finances and operations, but whether the deal actually happens is still up in the air—GoTo has reiterated that no deal is in place yet. Theoretically, what if Grab acquires GoTo? Well, if the deal goes through, it could reshape the ride-hailing and delivery landscape in Southeast Asia. Grab and GoTo are already the biggest players in the region, so a merger might raise antitrust concerns—which means regulators could step in. For Singaporeans, this could impact pricing, promotions, and competition in the ride-hailing space. With fewer competitors in the region, ride fares and delivery fees could change, and the usual flood of discounts and promo codes may slow down. Uber, which exited the region in 2018 but still holds a stake in Grab, may also have a role in the deal. For now, talks are ongoing, but this potential mega-merger is one to watch. Standard Chartered is rolling out a revamped MyWay savings account for those aged 55 and above, featuring higher interest rates and free digital scam insurance for the first year. The Digital Scam Protection Insurance, underwritten by MSIG, covers up to $50,000 for losses from phishing and malware scams but excludes authorised payment scams like love or investment scams. Customers must also follow security measures, such as updating device software and using anti-malware solutions, to be eligible for claims. Alongside enhanced security, interest rates have increased for balances over $50,000. While the first $50,000 still earns 0.05% p.a., balances beyond that now enjoy rates between 0.5% to 3% p.a., depending on tiered amounts. Additionally, account holders can earn a 0.5% bonus interest rate for three months by depositing at least $200,000 in fresh funds. These changes aim to provide better returns and peace of mind for seniors banking with Standard Chartered. ALSO READ: 10 Best Savings Accounts in Singapore with the Highest Interest Rates (Feb 2025) Good news—more Singaporeans secured better-paying, higher-skilled jobs in 2024, especially in finance, IT, healthcare, and professional services. Meanwhile, lower-skilled sectors like F&B and admin support saw a decline in local employment. Overall, 8,800 more residents found jobs, reversing the dip seen in 2023. The job market is still going strong, with 1.64 job vacancies for every unemployed person as of December 2024. Demand remains high for roles like financial analysts, software developers, accountants, and business managers. At the same time, more companies are looking to hire and increase wages in the coming months. That said, retrenchments in finance and insurance crept up in Q4 2024 due to rising costs, but it hasn't dampened overall confidence. With steady hiring demand and strong employer sentiment, the labour market is expected to grow in early 2025—though global uncertainties could shake things up later in the year. That's it for this week! Stay tuned for next week's What's Happening This Week to keep up with the latest in finance, business, and beyond. Vanessa Nah likes her finance articles the way she likes her sitcoms—light-hearted, entertaining, and leaving people knowing a little more about life. She believes money—like life—should be made simple. Outside of work, you'll find Vanessa attending dance classes, fingerpicking a guitar, and fulfilling her life mission to make her one-eyed cat the most spoiled kitty in the world. Issue #17: What's Happening This Week? Record $1.52m Flat Sale, Chocolate Finance Processes 90% of Delayed Withdrawals was first published on the MoneySmart blog. MoneySmart makes it easy to take control of your finances. Stay in the loop—follow us on Instagram, Telegram, and Facebook for the latest on personal finance. Ready to find the best loans, insurance, or credit card offers in Singapore? Compare them on our site now. © 2009-2024 MoneySmart. All rights reserved.
Bloomberg
15-03-2025
- Business
- Bloomberg
Singapore's Connection to One of the Toughest Jobs in Tech
Welcome to the Singapore Edition newsletter. Each week we'll bring you insights into one of Asia's most dynamic economies. If you haven't yet, please sign up here. This week, Debby Wu looks at Singapore's connection to one of the toughest tasks in the global tech industry, Ishika Mookerjee examines the Chocolate Finance scare, and Alfred Cang prepares for an invasion of little monsters.
