09-07-2014, 09:59 PM
(09-07-2014, 08:25 PM)CityFarmer Wrote: [ -> ](09-07-2014, 06:30 PM)fat al Wrote: [ -> ]Any investment fund raising without MAS approval/registration should be treated as criminal in nature. CAD should be kicking down doors without the need for a complaint being filed.
The "investment fund" scams are structured as gold or property investments, rather than as straight-forward investment funds. It is not an obvious offence. It is a loophole as highlighted by buddy here.
One of the possible extreme action of MAS is to regulate all gold, and oversea property investments as tightly as investment funds. That is unfair for genuine gold and oversea property investment opportunities.
Actually, I was suggesting all activities of investment nature, gold and property included (see classification 3 below). Why cast the net so wide? No need for separate new laws when someone touts new ventures like silver or durian plantation. In summary:
1) No product/service involved = clearly pyramid
2) Consumable products and service = either qualified MLM or conventional business
3) Nonconsumable products would be investment nature and require licensing or regulation by various bodies (eg. MAS).
I don't think it will be unfair if every investment opportunity sponsor play by the same rule. Having said that:
1) problem will not be eradicated - Madoff was regulated.
2) I am ignorant of implementation issues that MAS, MOF or other government agencies can clearly see.
3) Regulation will imply checkboxes and there will be outcry from the some enterprising folks who have an exotic background.
4) Thanks or no thanks to human ingenuity - loopholes will be found. I have previously argued that people should not rely on the government for this reason. However, if we have to settle with laws, they should be as general and wide as possible.