Dear TheRealSingapore,
I have a story/opinion I like to share with our fellow readers.
Its about the unfair situation the Remisiers in singapore have to face ( not sure about other countrys).
My friend is a Remisier for more than 10 years after being jobless for several years in his early twenties during the financial crisis where many singaporeans became insurance agents, housing agents and remisiers.
I often see him stressed out after an 8-hour day work. So, I asked him whats wrong. He revealed to me that a client has become a Chao Kah, which in english means, someone who absconded, for lack of a better word. Remisiers are Guarantors for the clients. Remisiers are not employees of the trading house, as it were. They rent office space and equipment or tools from the trading house. They work in the premise of the trading house and pays the trading house a percentage of the transaction fees. Its like cabbies who rent from taxi companies. They too are not employees.
The problem :
1. As Guarantors of clients, if clients run away when its shares drop , the Remisiers have to foot the bill, as it were. So, the client can buy a lot of shares and not pay for it if something goes wrong. The Remisier, under the rules , have to take over the losses.
I like to share this with readers as many may not be aware of the plights of Remisiers.
At the same time, I have limited knowledge of this trade and hope to find out more from readers more familiar with this trade, to know if there is no recourse for remisiers or is that the way things are by law in singapore.
Why is such absurd situation allowed to happen in singapore?
What is the MAS ? or relevant authorities have to say ?
If you were a Remisier, you wont want to offend anyone because that person could get someone be your client and buy tons of shares and when that share plunge, he can runaway and let you become a bankrupt.
Sounds absurd? Thats what my Remisier friend encountered. He lost tens of thousands for the runaway.
So, hope to get your advice on the problem with this Trade.
regards
Johnny B
TRS reader