Sunday, April 3, 2011

Another Senseless CPF Policy

Currently share delisted from SGX brought with CPF fund is still being reflected in the various CPF approved Investment Bank statement (such as OCBC, DBS, etc).

This is an unreasonable CPF policy. Investors have already suffered losses and still have to pay the thrice a year service charges to the bank till they could closed the investment a/c upon reaching 55.

This could be quite a substantial sum as when a share is delisted, it affects a number of investors.

Let us presume a 30 year old investor is affected by a delisted share, he has to continue to pay service charges to the bank 3 times a year for the next 25 years before he could closed his account upon reaching 55 ! This certainly
does not make sense.

The bank could not do anything as it is CPF policy. And likely they are happy for the current senseless policy to continue, since they can continue with the service charge for a counter which is permanently inactive due to the delisting.

Should not CPF Board review their current unreasonable policy ? Not surprising the answer is NO. What they suggestion is even more ridiculous. CPF asked you to buy back the share with cash and further more incur other charges such as CPF administration fee, transfer fee and also the bank charges.

This is what our 'productive and efficient' govt policy offers the public.

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