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Business Times
30-05-2025
- 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:
The Star
20-05-2025
- Business
- The Star
Financial convergence opens doors for remisiers
SINGAPORE: Stock brokerages need to transform as they grapple with changes across the financial sector, says PhillipCapital founder and executive chairman Lim Hua Min. Lim noted that brokerages, banks and other financial services are converging, blurring the lines that have marked out these operations and creating new opportunities in the process. Remisiers, for example, could move between different financial activities and diversify into other areas to work as personalised fund managers. 'I see the increasing convergence of services,' said Lim, who has certainly seen his fair share of changes in the stockbroking industry as well as market crises like the collapse of Pan-Electric Industries, a marine salvage, hotel and property conglomerate. The Pan-Electric saga prompted the then Stock Exchange of Singapore to close for the first time ever for three days in December 1985. 'Brokerages will always be around, but stockbrokers might not. 'Banking will always be around, but banks might not. Insurance will always be around, but insurance companies might not,' he said, adding that a financial group can now provide all these services under one roof. Lim was speaking at an event at Fullerton Hotel on April 23 to mark PhillipCapital's 50th anniversary. His son Luke, who is managing director of Phillip Securities, said that the firm now has more remisiers who are cross-trained in wealth management. An individual can be both a remisier and a financial adviser if he has the necessary qualifications and licences. Remisiers need a representative licence to operate, while financial advisers are regulated under the Financial Advisers Act. PhillipCapital has 600 remisiers and 700 financial advisers. A remisier is a self-employed trading representative who provides advice on stocks, and buys and sells shares on behalf of clients, while financial advisers help individuals to plan for financial goals like buying a house or saving for retirement. Fellow stock brokerage CGS International Securities Singapore said the 'convergence of services of a remisier towards a wealth manager' is a good starting point. CGS International chief executive Malcolm Koo noted that many remisiers have more than 20 years of experience in the financial markets and the fact that they are still around shows how well they have managed risks and navigated changes. Many have also forged trusted relationships with their clients over the years, creating a 'matured pool of remisiers who have valuable financial knowledge and experience' that they can share with investors, Koo said. This industry convergence is happening as technology reshapes the way people invest. Luke Lim noted the new wave of retail investors who are digitally savvy and want to make their own investment decisions. They want real-time data and want to execute trades, analyse trends and get expert advice all in one ecosystem. PhillipCapital was the first to launch an online trading platform, Poems, in 1996 to cater to this group of self-directed investors. Lim said: 'We moved from a traditional broker to a hybrid approach that combines digital convenience with human insight.' Remisiers at Maybank Securities Singapore serve as 'informed touchpoints' to help clients interpret market movements or navigate the trading platform, said Alexander Thorhauge, the brokerage's head of retail business. Thorhauge added that remisiers can tap Maybank's research database to glean insights on macroeconomic developments or on specific sectors to provide client advice. While there will always be some folk who prefer to invest on their own, there will be others who prefer to talk to someone, especially during periods when the markets are volatile, he noted. Ernest Lim, a remisier at CGS International, adds value to his clients by providing regular market updates and timely alerts whenever a stock is downgraded or upgraded. He has one-on-one meetings with a listed company's senior management so he can understand each firm better and provide clients with information about its shares. Lim also makes site visits to a firm's overseas plants to get a better on-the-ground feel of the company. He has extended exclusive access to management meetings to clients so they can find out more about the company on their own. Lim noted that active traders appreciate the trust, consistency and added perspective that remisiers can provide. Fellow remisier Lek Yew Meng from Lim and Tan Securities said most of his clients are busy professionals or retirees who trade only in the Singapore market. These investors value timely, bite-sized market updates and corporate-related announcements. He has conducted small group sessions on various topics to help clients understand market trends and explore products on the Singapore Exchange (SGX) and to familiarise them with the stocks that he thinks are worth adding to their watch list. 'It is about maintaining consistent communication, investor education and personal attention,' Lek said. The Remisier Development Programme, launched in September 2024, helps remisiers pick up new skills such as digital marketing or learn advanced trading strategies to better manage client portfolios. The programme is a joint initiative by the Securities Association of Singapore and the Society of Remisiers, with support from the SGX. — The Straits Times/ANN
Straits Times
19-05-2025
- Business
- Straits Times
Convergence of financial services presents opportunities for remisiers in S'pore, say market watchers
A remisier is a self-employed trading representative who provides advice on stocks, and buys and sells shares on the stock exchange on behalf of clients. ST PHOTO: LIM YAOHUI Convergence of financial services presents opportunities for remisiers in S'pore, say market watchers SINGAPORE – Stock brokerages need to transform as they grapple with changes across the financial sector, said PhillipCapital founder and executive chairman Lim Hua Min. Mr Lim noted that brokerages, banks and other financial services are converging, blurring the lines that have marked out these operations and creating new opportunities in the process. Remisiers, for example, could move between different financial activities and diversify into other areas to work as personalised fund managers. 'I see the increasing convergence of services,' said Mr Lim, who has certainly seen his fair share of changes in the stockbroking industry as well as market crises like the collapse of Pan-Electric Industries, a marine salvage, hotel and property conglomerate. The Pan-Electric saga prompted the then Stock Exchange of Singapore to close for the first time ever for three days in December 1985. 'Brokerages will always be around, but stockbrokers might not. Banking will always be around, but banks might not. Insurance will always be around, but insurance companies might not,' he said, adding that a financial group can now provide all these services under one roof. Mr Lim was speaking at an event at Fullerton Hotel on April 23 to mark PhillipCapital's 50th anniversary. His son Luke , who is managing director of Phillip Securities, said that the firm now has more remisiers who are cross-trained in wealth management. An individual can be both a remisier and a financial adviser if he has the necessary qualifications and licences. Remisiers need a representative licence to operate, while financial advisers are regulated under the Financial Advisers Act. PhillipCapital has 600 remisiers and 700 financial advisers. A remisier is a self-employed trading representative who provides advice on stocks, and buys and sells shares on behalf of clients, while financial advisers help individuals to plan for financial goals like buying a house or saving for retirement. Fellow stock brokerage CGS International Securities Singapore said the 'convergence of services of a remisier towards a wealth manager' is a good starting point. CGS International chief executive Malcolm Koo noted that many remisiers have more than 20 years of experience in the financial markets and the fact that they are still around shows how well they have managed risks and navigated changes. Many have also forged trusted relationships with their clients over the years, creating a 'matured pool of remisiers who have valuable financial knowledge and experience' that they can share with investors, Mr Koo said. This industry convergence is happening as technology reshapes the way people invest. PhillipCapital executive chairman Lim Hua Min (left) and his son, Phillip Securities managing director Luke Lim, cutting PhillipCapital's 50th birthday cake with Ms Gillian Tan, assistant managing director (development and international) and chief sustainability officer the Monetary Authority of Singapore. PHOTO: PHILLIPCAPITAL Mr Luke Lim noted the new wave of retail investors who are digitally savvy and want to make their own investment decisions. They want real-time data and want to execute trades, analyse trends and get expert advice all in one ecosystem. PhillipCapital was the first to launch an online trading platform, Poems, in 1996 to cater to this group of self-directed investors. Mr Lim said: 'We moved from a traditional broker to a hybrid approach that combines digital convenience with human insight.' Remisiers at Maybank Securities Singapore serve as 'informed touchpoints' to help clients interpret market movements or navigate the trading platform, said Mr Alexander Thorhauge, the brokerage's head of retail business. Mr Thorhauge added that remisiers can tap Maybank's research database to glean insights on macroeconomic developments or on specific sectors to provide client advice. While there will always be some folk who prefer to invest on their own, there will be others who prefer to talk to someone, especially during periods when the markets are volatile, he noted. Mr Ernest Lim, a remisier at CGS International, adds value to his clients by providing regular market updates and timely alerts whenever a stock is downgraded or upgraded. He has one-on-one meetings with a listed company's senior management so he can understand each firm better and provide clients with information about its shares. Mr Lim also makes site visits to a firm's overseas plants to get a better on-the-ground feel of the company. He has extended exclusive access to management meetings to clients so they can find out more about the company on their own. Mr Lim noted that active traders appreciate the trust, consistency and added perspective that remisiers can provide. PhillipCapital chairman Lim Hua Min back in 1975 when he first started the brokerage. PHOTO: PHILLIPCAPITAL Fellow remisier Lek Yew Meng from Lim and Tan Securities said most of his clients are busy professionals or retirees who trade only in the Singapore market. These investors value timely, bite-sized market updates and corporate-related announcements. He has conducted small group sessions on various topics to help clients understand market trends and explore products on the Singapore Exchange (SGX) and to familiarise them with the stocks that he thinks are worth adding to their watch list. 'It is about maintaining consistent communication, investor education and personal attention,' Mr Lek said. The Remisier Development Programme, launched in September 2024, helps remisiers pick up new skills such as digital marketing, or learn advanced trading strategies to better manage client portfolios. The programme is a joint initiative by the Securities Association of Singapore and the Society of Remisiers, with support from the SGX. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
19-05-2025
- Business
- Business Times
Wealth management opens door for Singapore remisiers
[SINGAPORE] Stock brokerages need to transform as they grapple with changes across the financial sector, said PhillipCapital founder and executive chairman Lim Hua Min. Lim noted that brokerages, banks and other financial services are converging, blurring the lines that have marked out these operations and creating new opportunities in the process. Remisiers, for example, could move between different financial activities and diversify into other areas to work as personalised fund managers. 'I see the increasing convergence of services,' said Lim, who has certainly seen his fair share of changes in the stockbroking industry as well as market crises like the collapse of Pan-Electric Industries, a marine salvage, hotel and property conglomerate. The Pan-Electric saga prompted the then Stock Exchange of Singapore to close for the first time ever for three days in December 1985. 'Brokerages will always be around, but stockbrokers might not. Banking will always be around, but banks might not. Insurance will always be around, but insurance companies might not,' he said, adding that a financial group can now provide all these services under one roof. 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 Lim was speaking at an event at Fullerton Hotel on Apr 23 to mark PhillipCapital's 50th anniversary. His son Luke, who is managing director of Phillip Securities, said that the firm now has more remisiers who are cross-trained in wealth management. An individual can be both a remisier and a financial adviser if he has the necessary qualifications and licences. Remisiers need a representative licence to operate, while financial advisers are regulated under the Financial Advisers Act. PhillipCapital has 600 remisiers and 700 financial advisers. A remisier is a self-employed trading representative who provides advice on stocks, and buys and sells shares on behalf of clients, while financial advisers help individuals to plan for financial goals like buying a house or saving for retirement. Fellow stock brokerage CGS International Securities Singapore said the 'convergence of services of a remisier towards a wealth manager' is a good starting point. CGS International chief executive Malcolm Koo noted that many remisiers have more than 20 years of experience in the financial markets and the fact that they are still around shows how well they have managed risks and navigated changes. Many have also forged trusted relationships with their clients over the years, creating a 'matured pool of remisiers who have valuable financial knowledge and experience' that they can share with investors, Koo said. This industry convergence is happening as technology reshapes the way people invest. PhillipCapital executive chairman Lim Hua Min (left) and his son, Phillip Securities managing director Luke Lim, cutting PhillipCapital's 50th birthday cake with Gillian Tan, assistant managing director (development and international) and chief sustainability officer the Monetary Authority of Singapore. PHOTO: PHILLIPCAPITAL Luke Lim noted the new wave of retail investors who are digitally savvy and want to make their own investment decisions. They want real-time data and want to execute trades, analyse trends and get expert advice all in one ecosystem. PhillipCapital was the first to launch an online trading platform, Poems, in 1996 to cater to this group of self-directed investors. Lim said: 'We moved from a traditional broker to a hybrid approach that combines digital convenience with human insight.' Remisiers at Maybank Securities Singapore serve as 'informed touchpoints' to help clients interpret market movements or navigate the trading platform, said Alexander Thorhauge, the brokerage's head of retail business. Thorhauge added that remisiers can tap Maybank's research database to glean insights on macroeconomic developments or on specific sectors to provide client advice. While there will always be some folk who prefer to invest on their own, there will be others who prefer to talk to someone, especially during periods when the markets are volatile, he noted. Ernest Lim, a remisier at CGS International, adds value to his clients by providing regular market updates and timely alerts whenever a stock is downgraded or upgraded. He has one-on-one meetings with a listed company's senior management so he can understand each firm better and provide clients with information about its shares. Lim also makes site visits to a firm's overseas plants to get a better on-the-ground feel of the company. He has extended exclusive access to management meetings to clients so they can find out more about the company on their own. Lim noted that active traders appreciate the trust, consistency and added perspective that remisiers can provide. PhillipCapital chairman Lim Hua Min back in 1975 when he first started the brokerage. PHOTO: PHILLIPCAPITAL Fellow remisier Lek Yew Meng from Lim and Tan Securities said most of his clients are busy professionals or retirees who trade only in the Singapore market. These investors value timely, bite-sized market updates and corporate-related announcements. He has conducted small group sessions on various topics to help clients understand market trends and explore products on the Singapore Exchange (SGX) and to familiarise them with the stocks that he thinks are worth adding to their watch list. 'It is about maintaining consistent communication, investor education and personal attention,' Lek said. The Remisier Development Programme, launched in September 2024, helps remisiers pick up new skills such as digital marketing, or learn advanced trading strategies to better manage client portfolios. The programme is a joint initiative by the Securities Association of Singapore and the Society of Remisiers, with support from the SGX. THE STRAITS TIMES
Business Times
19-05-2025
- Business
- Business Times
Convergence of financial services presents opportunities for remisiers in S'pore, say market watchers
[SINGAPORE] Stock brokerages need to transform as they grapple with changes across the financial sector, said PhillipCapital founder and executive chairman Lim Hua Min. Lim noted that brokerages, banks and other financial services are converging, blurring the lines that have marked out these operations and creating new opportunities in the process. Remisiers, for example, could move between different financial activities and diversify into other areas to work as personalised fund managers. 'I see the increasing convergence of services,' said Lim, who has certainly seen his fair share of changes in the stockbroking industry as well as market crises like the collapse of Pan-Electric Industries, a marine salvage, hotel and property conglomerate. The Pan-Electric saga prompted the then Stock Exchange of Singapore to close for the first time ever for three days in December 1985. 'Brokerages will always be around, but stockbrokers might not. Banking will always be around, but banks might not. Insurance will always be around, but insurance companies might not,' he said, adding that a financial group can now provide all these services under one roof. 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 Lim was speaking at an event at Fullerton Hotel on Apr 23 to mark PhillipCapital's 50th anniversary. His son Luke, who is managing director of Phillip Securities, said that the firm now has more remisiers who are cross-trained in wealth management. An individual can be both a remisier and a financial adviser if he has the necessary qualifications and licences. Remisiers need a representative licence to operate, while financial advisers are regulated under the Financial Advisers Act. PhillipCapital has 600 remisiers and 700 financial advisers. A remisier is a self-employed trading representative who provides advice on stocks, and buys and sells shares on behalf of clients, while financial advisers help individuals to plan for financial goals like buying a house or saving for retirement. Fellow stock brokerage CGS International Securities Singapore said the 'convergence of services of a remisier towards a wealth manager' is a good starting point. CGS International chief executive Malcolm Koo noted that many remisiers have more than 20 years of experience in the financial markets and the fact that they are still around shows how well they have managed risks and navigated changes. Many have also forged trusted relationships with their clients over the years, creating a 'matured pool of remisiers who have valuable financial knowledge and experience' that they can share with investors, Koo said. This industry convergence is happening as technology reshapes the way people invest. PhillipCapital executive chairman Lim Hua Min (left) and his son, Phillip Securities managing director Luke Lim, cutting PhillipCapital's 50th birthday cake with Gillian Tan, assistant managing director (development and international) and chief sustainability officer the Monetary Authority of Singapore. PHOTO: PHILLIPCAPITAL Luke Lim noted the new wave of retail investors who are digitally savvy and want to make their own investment decisions. They want real-time data and want to execute trades, analyse trends and get expert advice all in one ecosystem. PhillipCapital was the first to launch an online trading platform, Poems, in 1996 to cater to this group of self-directed investors. Lim said: 'We moved from a traditional broker to a hybrid approach that combines digital convenience with human insight.' Remisiers at Maybank Securities Singapore serve as 'informed touchpoints' to help clients interpret market movements or navigate the trading platform, said Alexander Thorhauge, the brokerage's head of retail business. Thorhauge added that remisiers can tap Maybank's research database to glean insights on macroeconomic developments or on specific sectors to provide client advice. While there will always be some folk who prefer to invest on their own, there will be others who prefer to talk to someone, especially during periods when the markets are volatile, he noted. Ernest Lim, a remisier at CGS International, adds value to his clients by providing regular market updates and timely alerts whenever a stock is downgraded or upgraded. He has one-on-one meetings with a listed company's senior management so he can understand each firm better and provide clients with information about its shares. Lim also makes site visits to a firm's overseas plants to get a better on-the-ground feel of the company. He has extended exclusive access to management meetings to clients so they can find out more about the company on their own. Lim noted that active traders appreciate the trust, consistency and added perspective that remisiers can provide. PhillipCapital chairman Lim Hua Min back in 1975 when he first started the brokerage. PHOTO: PHILLIPCAPITAL Fellow remisier Lek Yew Meng from Lim and Tan Securities said most of his clients are busy professionals or retirees who trade only in the Singapore market. These investors value timely, bite-sized market updates and corporate-related announcements. He has conducted small group sessions on various topics to help clients understand market trends and explore products on the Singapore Exchange (SGX) and to familiarise them with the stocks that he thinks are worth adding to their watch list. 'It is about maintaining consistent communication, investor education and personal attention,' Lek said. The Remisier Development Programme, launched in September 2024, helps remisiers pick up new skills such as digital marketing, or learn advanced trading strategies to better manage client portfolios. The programme is a joint initiative by the Securities Association of Singapore and the Society of Remisiers, with support from the SGX. THE STRAITS TIMES
