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injured - Equity Linked Note

How the bank take advantage of you through Equity Linked Note (ELN)

Equity Linked Notes or ELNs for short are marketed to Accredited Investors. Here is an example: The ELN is linked with the performance of 15 companies. The ELN earns a fix 4% yield for each year provided the 15 companies’ shares are above certain predetermined share prices known as the strike prices. Typically the strike prices are 20% to 30% below the current prices of these companies. Assume the probability of each company share price above the strike price is 90% (I deliberately give it an … [Read More...]

Getting hit by the sales target's arrow.

MAS found lapses in the sales of financial products

Supervisors oversight is not up to mark in a number of FA firms. I attended the 15th Annual Conference of the Association of Financial Advisers (Singapore). The keynote address was Ms Merlyn Ee, Executive Director, Monetary Authority of Singapore. According to her: Mystery shopper exercises found some financial advisers did not ask for all information on the financial situation of customers such as their cash flow, net worth, income and existing financial portfolios. Another area … [Read More...]

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