Navigating the realm of investing as a resident of Singapore is complex, and before engaging an investment firm, it’s important to have a thorough understanding of their qualifications, experience, track record, reliability and suitability for you. They should also have the ability to ensure that your investments are geared towards achieving your wider financial planning goals. In this article, we look at some of the most important considerations you should consider when choosing an investment firm in Singapore.
In this article, we’ll look at:
Types of investment firms in Singapore
Choosing an investment firm in Singapore
Questions you should ask investment firms in Singapore
Building a successful partnership
Types of investment firm in Singapore
1. Registered financial professionals
These professionals, regulated by the Monetary Authority of Singapore (MAS), conduct securities transactions for investors and provide tailored financial advice, including services such as financial planning, retirement planning, investment advice and wealth management. Some specialise in just one of these services, others offer the full range. Most financial advisors in Singapore operate under the umbrella of a larger firm.
2. Banks
In Singapore, most banks also offer investment and financial planning advice, however the products they offer will normally be just their own or those of a small range of partners. This can be limiting, particularly for foreign residents in Singapore whom it also benefits to diversify internationally.
3. Insurance agencies
Insurance agents in Singapore specialize in selling life, health, and property insurance policies, operating under the regulatory purview of the MAS and the Singaporean insurance regulations. They also often offer their own limited range of investment plans.
Choosing an investment firm in Singapore
When choosing an investment firm in Singapore, ensure you follow these steps:
Independent research: Start by conducting your own comprehensive online research to verify the firm’s credentials, background and track record, the products and services they offer. Look for client feedback too, and whether they’ve had any regulatory or legal issues.
Verify MAS registration: Confirm the firm's registration status with MAS to ensure their compliance with Singapore's regulatory requirements.
Define and articulate your objectives: Think about your financial goals before you talk to any investment firms in Singapore. Set out what you would like to achieve financially and within what time frame. It’s important to be clear and transparent with your investment firm regarding your objectives and the level of risk you are comfortable taking to achieve them
Avoid high-pressure tactics: Stay cautious of professionals pushing for quick investments and take the time needed to thoroughly assess any proposals.
Questions you should ask investment firms in Singapore
Experience:
What is your advisor’s professional experience in the financial industry in Singapore?
How long have they been practicing as an investment professional in Singapore?
Can they highlight any particular experience or successes with clients with a similar financial situation or investment goals?
Credentials:
What are their professional qualifications and credentials within the financial services industry in Singapore?
For example, are they a Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or do they hold any other relevant designations or certifications?
Products and services offered:
What specific investment products and services do they offer to clients in Singapore?
Do they specialize in certain investment types (e.g., equities, bonds, mutual funds) or cater to a broad range of investments?
Are there any products or services that they do not offer? If so, why?
Fee structures:
How are their fees structured? Do they charge a flat fee, a percentage of assets managed, or commissions or fees on specific transactions?
Are there any additional charges or hidden costs?
Investment approach:
Can they explain their approach to managing investments? Can they provide examples or insights into your typical investment strategy?
What strategies do they employ to manage risk for their clients?
How do they adapt their investment approach to suit individual clients' diverse financial goals and risk tolerances?
These questions will help you gain a comprehensive understanding of the firm’s credentials, approach, and how their services align with your investment goals and preferences in Singapore.
Building a successful partnership
After selecting an investment firm in Singapore, it’s important to maintain open communication and vigilance. This may include.
Stay engaged: Read the materials they provide, including understanding the investments they recommended and how they will help achieve your goals, and also potential risks.
Keep track of fees: Understand and question all fees, as fees can eat into your returns.
Communicate changes: Keep your investment firm in Singapore informed about any changes in your financial situation, income, risk tolerance, or other factors.
Reporting misconduct: If any suspicions arise about improper conduct, escalate concerns to the firm's compliance department.
In conclusion, choosing and having a successful relationship with your investment firm in Singapore involves research, asking pertinent questions, and, once you’ve chosen a firm, staying engaged through ongoing communication. Regularly review and reassess your financial goals and investment strategies in collaboration with your advisor to ensure you attain the prosperous and secure financial future you deserve.