Structured products are not sold in the UK

Donaldson Tan posted this comment in my blog:
Retail investors in UK can only buy mutual funds. I don´t understand how come banks can market products riskier than mutual funds to retail investors in Singapore in the first place.

REPLY
Singapore's regulatory approach is modelled along the UK system, i.e.

1. Financial institutions are given freedom to design and market their product
2. The financial institutions have to behave responsibily towards the consumers.

3. If they fail in their duty, the Financial Services Authority will impose heavy fines on the institutions and get them to compensate the consumers for their losses

If MAS in Singapore adopt the same approach and impose heavy penalties on the institutions for wrong doing, you will find that the risky structured products will not be sold in Singapore.

MAS has the power to bring the institutions to court for breaking the provisions of the Financial Services Act, Securities and Futures Act and the Trustees Act. I hope that they will carry out their duty to enforce the law.