Singapore Exchange Limited (SGX) has set up an Investor Education Fund (IEF) to benefit investors in its securities and derivatives market. The IEF will support initiatives that seek to improve the understanding and ability of investors to make better informed investment decisions.
Funds of the IEF come from money collected from fines imposed for rule breaches. The Investor Education Committee (IEC) comprises both industry practitioners and senior management of SGX. They are:
1. Mr Sia Cheong Yew, Chairman of IEC who was Supervising Editor of The Straits Times’ Money Desk and is now a Media Consultant
2. Mr Ang Hao Yao, Chairman, Membership, Securities Investors Association (Singapore)
3. Mr Lim Eng Hai, CEO, Securities Association of Singapore
4. Mr Gan Seow Ann, Senior Executive Vice President and Head, Markets, SGX
5. Ms Yeo Lian Sim, Senior Executive Vice President and Head, Risk Management and Regulation, SGX
The IEC will approve projects and allocate funds. It expects to disburse up to $400,000 in the first year of operation.
The IEC held its first meeting on 30 April 2009 and approved funding for two projects. One project is to produce simple, easy-to-use reference guides to assist investors in reading annual reports and help them to become active participants at annual general meetings.
The second is the funding for SGX Academy programmes in collaboration with MoneySENSE, a national financial education programme. The committee also agreed to co-fund non-SGX projects that meet the IEF guidelines.
Commenting on what the committee hopes to achieve, Mr Sia Cheong Yew, Chairman of IEC said: “Our aim is to help investors to be more knowledgeable and so, be able to put their money to good use.”
“We also hope investors will learn how to seek out relevant information from the companies they have invested in so that they can keep tabs on what’s going on. With the increased understanding, investors including retail investors can play a bigger role in market activities.”
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