Singapore Exchange Limited (SGX) is pleased to announce that it 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:
- Mr Sia Cheong Yew, Chairman of IEC who was Supervising Editor of The Straits
Times’ Money Desk and is now a Media Consultant
- Mr Ang Hao Yao, Chairman, Membership, Securities Investors Association
(Singapore)
- Mr Lim Eng Hai, CEO, Securities Association of Singapore
- Mr Gan Seow Ann, Senior Executive Vice President and Head, Markets, SGX
- 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.”
Please find the funding guidelines in Appendix 1.
Appendix 1
SGX INVESTOR EDUCATION FUND (IEF) – FUNDING GUIDELINES
- The funds will be allocated for the following:
- Programmes with clear objectives to equip investors of SGX markets with knowledge and skills for better informed investment decisions;
- Initiatives that raise the awareness of SGX supervisory issues and requirements; or
- Initiatives that the Investor Education Committee deems to be in the interest of the market and where benefits to investor education and information can be demonstrated.
- SGX currently conducts promotional and educational activities for new products as part of its drive for market participation in new products. New product promotion activities, which are to be distinguished from educational activities, will not be eligible for funding from the IEF.
- Funds may also be used to co-fund projects of other organisations. Generally, the co-funding will be up to 75% of the cost of the programme.
- Amendments to these guidelines may be effected with the agreement of the Executive Committee of SGX and the Investor Education Committee. These changes will take into account emerging trends and relevant market developments.
