SFC is now under fire after the consecutive collapses of 3 brokers in recent months. Every time it reminded the investors to open the Investor Participant Account (IP) or Stock Segregated Account (SSA) for "self-protection". Unfortunately, retail investors do not favor on such services. According to the findings of media, the investors are generally concerned with delay in order execution and stock transfer fees by using the services.
This week SFC issued a circular to remind the brokers that they should heighten their clients' awareness of the IP and SSA services. This is fine but subsequently SFC uses such kind of "threatening" tone:
"The Commission will not look favourably upon those brokers who either refuse to provide interested clients with the related information on the IP and SSA services, or who actively or tacitly discourage clients from availing themselves of such services."
It seems that IP or SSA services have never been popular (even launched for so many years) is due to brokers' deterrence! Any facts to support this conjecture? Have investors been surveyed why they don't use the IP or SSA services? I can't find such study in either the Retail Investor Survey 2005 or the Stock Investor Survey (June 2006) published by SFC.
Perhaps somebody has attempted to conceal the failed service marketing by finding a scapegoat.
One client said the IP and SSA services are 麻煩。
ReplyDeleteMy view is HKEX has the primary responsibility to promote the services as they are their babies and the SFC will give them (i.e. HKEX) a helping hand in their investor education projects. To put the burden on brokers would ask every brokers to admit that the stocks are not safe with them.
ReplyDeleteNowadays, SFC expects every broker to be good citizen.
ReplyDelete