Response to two letters on perpetual securities - ST Forum 23 May 2012
23 May 2012
The Editor ST Forum
MAS’ comments on perpetual securities offered to retail investors were made in response to questions from the Straits Times on the risks of perpetual securities. MAS does not issue alerts or warnings about specific products (“Perpetual securities: Alerts from MAS should be timely”, ST Forum, 19 May 2012, and “MAS caution lacks balance”, ST Forum, 21 May 2012).
We agree with Mr Lawrence Loh and Mr Chrys Mendis that investors must ultimately take responsibility for their actions. However, we also do expect issuers and financial institutions that offer investment products to disclose the risks and features of products clearly to investors. This allows consumers to make informed financial decisions with a good understanding of their own risk appetite.
Angelina Fernandez Director (Communications) Monetary Authority of Singapore