Contributed by Kenny Loh, Wealth Advisory Director, Financial Alliance Pte Ltd
(The contributor can be contacted at kennyloh@fapl.sg)
Working in Singapore’s bustling financial sector can be both rewarding and challenging. For professionals employed in financial institutions, particularly in roles involving investment management, compliance requirements add an extra layer of complexity to their personal investment strategies, especially for retirement planning.
Compliance regulations in Singapore’s financial industry are stringent and constantly evolving to ensure integrity, transparency, and investor protection. While these regulations are necessary for maintaining trust and stability in the financial markets, they can pose challenges for professionals seeking to optimise their personal investment portfolios. Restrictions on certain investment products, limitations on trading activities, prohibition of opening trading accounts with another financial institution, and stringent reporting requirements can limit the choices available to financial professionals when planning for their retirement.
The main reason of all these restrictions imposed on the individuals is the prevention of conflict of interest. Finance professionals have access to a lot of private and confidential information, such as unpublished financial results of a company, merger and acquisition deals, management or shareholders changes, newly-acquired customers or lost customers, etc. These may have significant impact of the valuation of the company and may have direct impact to the share price of a listed company.
To navigate these challenges effectively, financial professionals may consider various investment solutions tailored to their unique circumstances. One option is to opt for a professionally managed accounts offered by reputable wealth management firms. This will minimise the levels of conflict of interest as long as the individuals are not involved in any investment decision. These accounts are managed by seasoned professionals who can craft diversified portfolios aligned with the individual’s risk tolerance, investment goals, and compliance requirements.
Another approach is to engage the services of a knowledgeable and trustworthy independent financial advisor who understands the intricacies of compliance in Singapore’s financial landscape. A skilled advisor can provide personalised guidance, recommend suitable investment options, and help navigate the regulatory landscape to ensure compliance while maximising returns.
Furthermore, financial professionals should prioritise education and stay informed about regulatory changes that may impact their investment decisions. Continuous learning and adaptation are essential for maintaining a robust retirement plan in a dynamic regulatory environment.
In conclusion, while compliance requirements present challenges and dilemmas for financial professionals in Singapore, there are viable solutions available to help them effectively plan for retirement. By leveraging professionally managed accounts, seeking guidance from financial advisors, and staying informed about regulatory changes
Photo by Ketut Subiyanto
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.
In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).
With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.
