facebookWhat will be the exit strategies of each Robo-advisor if something like Smartly were to happen? Will you liquidate or how would you go about? Please advice.? - Seedly

Advertisement

What will be the exit strategies of each Robo-advisor if something like Smartly were to happen? Will you liquidate or how would you go about? Please advice.?

SeedlyTV S2E04

Discussion (2)

What are your thoughts?

Eliezer

Eliezer

11 May 2020

Content & Community Lead at Syfe

Hi Thumelen, we've answered this question previously here: https://seedly.sg/questions/if-syfe-gets-stops-...

The key thing to note is that Syfe, as a Capital Markets Services (CMS) license holder, has met all the stringent requirements and standards set by MAS to prevent a bankruptcy event from happening, and to keep our clients’ funds and assets safe. This includes meeting the minimum capital requirement to ensure that Syfe has sufficient daily cash flow to meet all operational needs.

Our investors can rest assured that their money is in safe hands. You can also find out more about how we have been managing our clients' money here: https://www.syfe.com/magazine/consolidation-cor...

Shengshi Chiam, CFA

Shengshi Chiam, CFA

10 May 2020

Personal Finance Lead at Endowus

Hi Thumelen ,

We sent out a letter to all our investors, just reposting this for everyone's reference if interested: https://bit.ly/3bvDokg

Key summary will beyond the usual licensing comments:

  1. All assets are held in your legal name.** Operationally, we have gotten UOB kayhian to allow you to hold on to your existing investments at the same cost**.

  2. You will not be forced to liquidate your investments even if Endowus ceases operations.

  3. You will not be able to buy new funds or rebalance though, since this is part of Endowus value added services,

Having worked here for 4 months, I think the way we look at costs, especially marketing costs, is more SME style than startup style. Because we are funded internally by the founders (I have subscribed to this round of internal funding as well so I will be a shareholder), we are literally spending our own money and are committed to keep the business sustainable.

We structure the holding structure very carefully and safely as if its our own money, and we manage costs carefully as well. Hope this answers!​​​

Write your thoughts

Advertisement