Want to invest? Pass the test first

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Investors would be required to pass an online exam before investing in complex or risky products in the wake of the Banksia Securities, Trio Capital and MF Global collapses, under a proposal by Greg Medcraft, the chairman of the Australian Securities and Investments Commission.

Investors would be required to take “e-learning module” tests that could take up to two hours. They would test investors’ knowledge of financial products including margin loans, contracts for difference, derivatives and hybrid securities.

If you fail – stay back after class.

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Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

2012-12-13T21:19:13+0000

All|Asia Pacific|Regulation

Eamonn Sheridan

3 Comments

  1. Never knew we had to pass a test as well to become successful in the savings aspect. All that we know is Savings is a mind mapped game and in today’s Social era it’s a possibility and also a boon if one is concentrated enough.

    Yes modes are many but stick to the conventional ones like online saving aggregator sites/ Insurance aggregator sites etc which displays the best saving/ term plans so that you can stream lines the savings path and thereby get the best of your money

  2. ASIC just don’t get it do they . Passing a test to prove you understand that you know what your doing isn’t going to help you one iota if the firm goes belly-up . If anything , it’s the ASIC employees who need to hone their investigative & regulatory skills so they can step in before it’s too late . Plenty of traders with 20+ years experience in the markets got shafted by the MF Global collapse .

  3. Yep.

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