We will focus on practical questions

We will focus on practical questions
Ex-Income CEO sets up association focused on educating public on financial matters
CONSUMERS now have a new body to turn to for financial advice and education.
By Lediati Tan
27 August 2009

CONSUMERS now have a new body to turn to for financial advice and education.

It's called the Financial Services Consumers Association (FiSCA), a non-profit organisation headed by ex-NTUC Income chief executive Tan Kin Lian.

Mr Tan told reporters at the group's launch yesterday that he had felt the need to educate consumers for quite some time now.

He decided to set up FiSCA after he carried out an online survey on his blog last year to see whether there was a demand for an association to educate consumers on financial matters.

FiSCA is currently run by volunteers.

Indeed, FiSCA may be constrained by what it can do given limits to its monetary and manpower resources.

To maintain impartiality, FiSCA does not seek funding from financial institutions. Its operations are supported by membership fees of $36 per person per annum.

FiSCA also hopes to receive funding from government agencies and charitable organisations.

Mr Tan said: 'At the initial stage, FiSCA has limited financial and human resources.

'We recognise our own resources now and we will do what we can with our financial and human resources.'

FiSCA's main focus now, he added, will be developing its website and recruiting members. It will then be able to build on its activities as its resources develop.

Mr Tan hopes to attract 10,000 members, but he says FiSCA can survive and continue to run its website even with just 100 members as it receives plenty of help from volunteers.

FiSCA's website was launched earlier this month, and 50 people so far have signed up as members.

Although FiSCA is looking into ways to fund its programmes, there is currently little distinction in terms of resources available to paying members and non-members.

Currently, FiSCA's website is accessible to all members of the public, but it is looking into making certain information on its website available only to its members and organising free workshops for members soon.

With various organisations such as the Consumers Association of Singapore (Case) already looking into consumer education and protection, what makes FiSCA different?

Mr Tan believes the distinction will be what it teaches the consumers.

He said: 'Our strategy is to educate consumers on the practical questions that face them every day. How much should they save? Where should they put their money? Which are safe and fair products?'

For interested investors, FiSCA will be coming up with a white list of financial products that have low charges and are well-diversified and suitable for long-term investment.

'In this task, FiSCA will operate on a common sense principle,' said Mr Tan.

Endorsement

'If we do not understand the product, we will not put it in the white list. If the product issuer wishes FiSCA to endorse it, it has to be forthcoming with information that FiSCA evaluators can understand.'

When contacted, Mr Seah Seng Choon, executive director of Case, said whether FiSCA is viable remains to be seen.

Are the consumer rights bodies now in existence doing enough to protect and educate consumers?

Said Mr Seah: 'I won't say that Case and other organisations have done enough. There's always room for improvement for the financial literacy of consumers.

'But Case and other organisations have put in place the best resources we have to help consumers understand the financial complications.'

President of the Securities Investors Association of Singapore David Gerald said he welcomed the setting up of FiSCA.

'Singapore can afford to have more financial literacy trainers and more associations doing financial literacy,' he said.

He noted that non-profit groups need funding and skilled human resources to thrive, but disagreed that receiving funding from financial institutions would compromise the independence of the organisation.

Good FiSCA policy

About the Financial Services Consumers Association (FiSCA)

AIMS:

# Educate consumers on financial matters

# Help consumers select financial products that give good value for their investments through independent evaluation

# Help people seek redress on mis-selling and other complaints

IN THE PIPELINE:

# Posting useful information on financial literacy on its website

# Conducting talks and workshops

# FiSCA-accredited course to train 100 programme facilitators by June 2010 to promote financial literacy

# Evaluation committee comprising FiSCA members to evaluate whether protection standards and regulations in Singapore are effective and fair to consumers

# Develop a white list of financial products and services

# Consumer forums will be convened when major financial consumer issues arise to allow affected investors to gather expert opinion and other advice

MEMBERSHIP:

# $36 per annum

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