Upfront payment

There are a few cases of private schools that closed down, causing large financial losses to students who paid the upfront fees for an education course of one, two or three years. The Ministry of Education has decided to regulate the industry, because the closure of these schools has given a bad reputation to Singapore.

This reminds me of unregulated investment schemes where the promoters promised to pay back the investments after 6, 9 or 12 months at an attractive rate of interest. When the investments mature, the promoters gave all types of excuses and refused to honor the payback arrangement. Complaints to the authority and the police were not followed up.

This is also giving a bad reputation to Singapore. They also have to be regulated. It is easy for the promoters to collect money from investors and difficult for the investors to get their money back.

It is best to avoid all types of unregulated investments. There is no way for you to do due diligence, if the scheme was set up with the purpose of defrauding the public and the regulator is not willing to take the matter to court. This advice is contained in my book, Practical Guide on Financial Planning.