Frequently Asked Questions

RWS

What is Risk Warning Statement (RWS)?

MAS notes that foreign-listed investment products, including EIPs, may carry a different set of risks and different levels of protection for investors from those offered locally. MAS will therefore require intermediaries to warn retail customers of the possible risks prior to the customer’s first purchase of a foreign-listed investment product starting from 28 Feb 2013, as well as to obtain the customer’s acknowledgement on the risk warning disclosure.

A risk warning disclosure highlights the key risks that customers should be aware of before trading in overseas-listed investment products. These include differences in legal systems, regulatory regime, political, social and economic developments as well as differences in costs, counterparty and correspondent broker risks between the foreign jurisdictions and Singapore.

Who should submit acknowledgement of the Risk Warning Statement?

All Retail Investors have to submit their acknowledgement of the Risk Warning Statement, except for

  • Accredited Investor
  • Expert Investor
  • Institutional Investor

If I pass the Customer Account Review, can I trade foreign EIPs/SIPs shares without acknowledging the Risk Warning Statement?

You can still trade in EIPs and SIPs if you have passed the CAR. However, effective from 28 Feb 2013, all investors must acknowledge the RWS to trade Overseas-Listed Investment products.

What happens if I did not acknowledge RWS by 28 Feb 2013?

You will not be able to trade in Overseas-Listed Investment product classified as EIPs/SIPs. Customers are advised to acknowledge the RWS as soon as possible to avoid disruptions to their trading.

However, you can still sell your existing portfolio of shares for liquidation purposes.

How do I submit my acknowledgement of the Risk Warning Statement?

You may submit your acknowledgement of Risk Warning Statement through one of the following ways:

1. Log in to your online trading account via POEMS 2.0 platform. Acknowledge receipt of the Risk Warning Statement by going to “Acct Mgmt”> “RWS Acknowledgement”; or

2. Approach any Phillip Investor Centres or contact your Trading Representative to complete the physical form of Risk Warning Statement.

I have multiple accounts with Phillip Securities. Do I have to acknowledge the Risk Warning Statement for every account?

You only have to acknowledge the Risk Warning Statement only one time and that acknowledgement will apply to all trading accounts opened with Phillip Securities.

For joint accounts, do both account holders have to acknowledge the Risk Warning Statement?

Yes, both joint account holders have to acknowledge the Risk Warning Statement either online through his/ her own individual account or hardcopy submission.