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Members of public are advised to be aware of unscrupulous firms that used misleading job advertisements to lure job applicants to open trading accounts with the firms. Victims have complained that that they have been asked to deposit monies for trading in commodities such as pork bellies, soya bean or in securities such as share indices after they have turned up a job interviews. Victims are usually shown initial profits but soon start losing money and are asked by the firms to top up their accounts. To cut their losses or even to retrieve their principal sum, people end up investing more money and eventually losing their entire investment.
To eradicate unscrupulous firms that trade in previously unregulated commodities such as pork bellies, soya bean, etc, the Commodity Futures Act was amended to expand the scope of the Act to cover all commodities. A mandatory licensing scheme was also imposed for firms and individuals (unless specifically exempted) trading in all types of commodity contracts. The amended Commodity Futures Act came into effect as the Commodity Trading Act on 27 June 2001.
Meantime, firms carrying on the business of dealing in securities, which included share indices, require a licence from the Monetary Authority of Singapore ("MAS") unless they are exempted.
Your best defence against unscrupulous firms is to stay vigilant. Be wary of the tactics used by the firms to get you to commence a trading account. You are advised to:
- Do your own check on the company before making any decisions. Trade only with licensed firms and brokers. You may visit the websites of TDB or SICOM for a list of the firms licensed under the Commodity Trading Act or the website of MAS for a list of licensed dealers.
- Be wary of companies that try to sell you 'get-rich-quick' schemes promising very high returns.
- Do not sign any documents that you have not read or fully understood as you may be bound contractually to fulfill legal obligations under the agreement.
- Respond only to job advertisements that state the company's name so that you can find out more about the company before your interview.
- Seek legal advice from your lawyers when in doubt and/or if already caught in such a scheme to find out if you can take any action against or recover money from the firm.
The public can contact the following agencies for information/enquiries:
For general information and frequently asked questions on the Commodity Trading Act, please visit International Enterprise Singapore (IE Singapore)'s website.
For information on firms licensed to deal in securities, please visit MAS' website at:
http://www.mas.gov.sg
For consumer-related inquiries, please call the Consumers Association of Singapore (CASE) at hotline 6463 1811.
To lodge a complaint, please click here.
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| Last updated on 18 May 2007 |
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