Warn investors clearly

Oct 8, 2009
Warn investors clearly
By Robin Chan

CORPORATE Singapore was urged to continue improving investor education and corporate governance by Finance Minister Tharman Shanmugaratnam on Wednesday night.

Mr Tharman said at the Securities Investors Association of Singapore (Sias) awards gala dinner: 'It is incumbent on financial institutions and advisers to make the downside risks perfectly plain and clear to the retail investor when selling any investment product.'

He said that companies with robust standards of corporate governance would be better able to keep the loyalty of investors when the flight to safety and quality occurs.

Citing a new Singapore Corporate Governance Index, Mr Tharman said there is a positive correlation between corporate governance and a company's performance.

The index was developed by the Singapore Management University's Centre for Corporate and Investor Responsibility.

The minister was speaking on the night when Sias awarded Great Eastern Life its first most admired financial institution award.

Read the full story in Thursday's edition of The Straits Times.