What is CAR and CKA?

The 2008 global financial crisis has led regulators to re-examine the sale and marketing of certain investment products. Following various consultations with the industry and reviews conducted by the Monetary Authority of Singapore (“MAS”) in recent years, the MAS has released new measures to further safeguard the interests of retail customers. These measures, which will take effect from 1 January 2012, apply to trading/investing in certain investment products generally called “Specified Investment Products” (“SIPs”). However, existing investors are encouraged to complete and return the assessments to avoid the risk of disruption to their trading/investing activities.

It is compulsory for broking firms such as Phillip Securities to assess retail investors for relevant knowledge and experience in trading SIPs. These products have structures, features and risks that are relatively more complex and difficult to understand.The Customer Account Review (CAR) enables us to assess whether you can trade in listed SIP products. The Customer Knowledge Assessment (CKA) enables us to assess whether you have the relevant knowledge or experience to understand the risks and features of an unlisted SIP.

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