
Source :
https://www.channelnewsasia.com/singapore/mas-licence-sdic-investment-chocolate-finance-4995486
Apple Intelligence :
β’ Investment Protection Discussion: The pause in instant withdrawals on Chocolate Finance sparked discussion on the protection of investments.
β’ SDIC Coverage Limitation: Money placed with investment platforms like Chocolate Finance is not covered by the SDIC Deposit Insurance Scheme, unlike bank deposits.
β’ Chocolate Financeβs Assurance: Chocolate Finance, licensed by MAS, assured customers that their funds are safe and held separately by custodians.
β’ Regulation Requirements: Companies managing funds need a capital markets services license from MAS, considering factors like fitness, track record, management expertise, business plans, and projections.
β’ Regulated Companies: Prominent investment platforms like Endowus, StashAway, and Chocolate Finance are typically regulated by MAS.
β’ Benefits of Licensing: MAS-licensed companies are likely to be financially stable, less prone to collapse, and provide consumer confidence due to regulatory oversight.
β’ Customer Fund Protection: Customersβ funds must be held in segregated, ringfenced accounts and protected by a robust custodian framework.
β’ Risk Management and Transparency: Companies must have a risk management framework and provide clear, transparent disclosures on service terms.
β’ Company Failure Protection: While funds are protected, customers may still experience delays in accessing their money if a company fails, and the government may provide implicit guarantees.
β’ Market Impact of COVID-19: Heightened market volatility caused by the COVID-19 pandemic.
β’ Potential Losses for Customers: Customers forced to liquidate portfolios could suffer losses.