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Your Fundsupermart USD Cash Account
Comet 17-04-2011, 06:37:36 PM



Joined Date: 10-04-2010
Posts: 20 times

Hi fellow investors,

Does anyone receive this email from FS?

"Dear Value Client,

We are writing to you with regards to your USD Cash Account held in your Fundsupermart account.

Our records show that you still have some balance in your USD Cash Account and there was no transaction performed in the past 2 years. Please note that the USD Cash Account is meant to facilitate investments in unit trusts. It is not solely for the purpose of earning interests. As such, we will arrange to return the balance to you if your Cash Account remains inactive by 21 April 2011.

What are my options prior to the refund?

Below are some of the options that you may consider if you wish to utilize your USD Cash Account monies prior to the refund:

1. Invest your USD Cash Account monies into unit trust
You may use your USD monies to buy any unit trust on our platform, subjected to the minimum initial/ subsequent investment amount.

Simply select the Transaction menu option, and click on Buy Unit Trusts. You will be able to select USD Cash Account as your Payment Method. If you intend to purchase a SGD denominated fund, we will be converting your USD payment into SGD before investing for you. If you invest into a USD denominated fund, no foreign exchange will be involved.

2. Convert to Parking Facility Fund at no sales charge

DBS Enhanced Income and Cash Fund are the two parking facility funds denominated in SGD on our platform. If you wish to convert your USD monies into SGD and park them in one of these funds, simply go to Transactions menu > Parking Facility Fund > Buy."

1. I remembered when Cash Account USD was first introduced, there was no T&Cs stating we need any UT transaction to maintain the account. I am a DIY investor and I invest as when I like.
2. How do you define "active"? One transaction every quarter? If so, does it mean I can maintain my USD Cash Account?
3. If FS is to forcefully refund us the cash, is this at the best interest of the customer, given now the USD-SGD exchange rate is so low as compared to few years back.
4. FS, are you actually trying to close down USD Cash Account just like SGD Cash Account? In the process, we might have to invest in UT and you can profit from the platform fees now?
5. During good times, you encourage us to set up USD Cash Account and during bad times, you are giving us no choice but to close down our USD Cash Account without considering the loss we might incur.

Frankly speaking, ever since the introduction of platform fees, FS seems to be introducing all sorts of nonsense rules to generate profit. I think you had spoilt your reputation that you had built up these years. The services definitely gone from bad to worse.

Please give us better alternatives if you still have conscience.
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SSLEE  (Moderator) 18-04-2011, 12:41:05 PM



Joined Date: 19-11-2008
Posts: 172 times

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Hi Comet,

Thanks for your feedback. Please allow us to clarify a few things with our compliance department before getting back to you again. Thanks for your patience in advance.

Meanwhile, please rest assured that we do not have any intention to make any profit out of this refund exercise.

Thank you.
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Comet 18-04-2011, 09:59:21 PM



Joined Date: 10-04-2010
Posts: 20 times

Hi SSLEE,

Thanks, would appreciate your reply and action before the start of the refund date 21 Apr 2011.
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SSLEE  (Moderator) 19-04-2011, 08:15:10 PM



Joined Date: 19-11-2008
Posts: 172 times

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Hi Comet,

I believe that our client services team has already contacted you with further explanation. We appreciate your kind understanding and we are glad that the case has been resolved.

Just like to reiterate a little bit here. The cash account is meant to be a temporary parking facility to facilitate unit trust investments, and not solely for the purpose of earning interests.

Please be rest assured again that we have no intention to make any profit out this refund exercise and that this exercise is done after discussing with our regulator. Therefore we are returning the monies belonging to accounts with no unit trust holdings and the cash account monies had not been utilized for the past 2 years.

Thanks.


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Comet 20-04-2011, 09:13:52 PM



Joined Date: 10-04-2010
Posts: 20 times

Hi SSLee,

I would like to thank FS for the prompt action in resolving the issue. However, I would also like to highlight that:

1) The UT account is without UT holdings only recently and not > 2 years.

2) As for cash account, the main objective is for DIY investors to park their cash there to earn interest (anyway the interest is 0% now ) until they are comfortable to invest in so I do not see why a 2 years timeframe is set especially 2 years ago we just experience a downturn.

So in either condition, I do not agree with the refund exercise.
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