- Ensure you engage a licensed trainer

Ensure you engage a licensed trainer

Written by Wilfred Ling

Thursday, 19 March 2009

In the news is a company in which was sued by its students for misrepresentation. I will not go into details as to what that dispute was but nevertheless the students got their refund after seeking help from the Small Claims Tribunal. That company deals with options. There has been increasingly many companies that provide training and advice on derivatives and forex trading. Some also do CFDs training and advising through seminars and courses. Some also provide personal coaching. I want to warn all that it is important for the students to check whether are these companies licensed to give advice on derivatives, forex and CFD. Since forex is always based on leverage, the trainer and the company is required to have a MAS financial adviser licenses on:

Contracts or arrangements for the purposes of leveraged foreign exchange trading

As for CFD and options, there appears to be no explicit license on it and hence it should come under the "catch-all" license namely:

Securities other than collective investment schemes

How to check? It is easy, just go to the MAS website, click "Financial institutions directory", "All institutions", "Search" and than key in the name of the company. If the company name appears, you will be able to see what licenses it hold. If you cannot find the company’s name, that means it does not hold a license and is also not an exempt financial adviser.

Comments

Add New