iFast Cash Account and Cash Fund Guarantee
Just received this notice from iFast today (iFast provides an integrated platform that allows investors to access and transact on hundreds of unit trusts).
In view of the recent news by Singapore Government to guarantee all bank deposits until Dec 2010 with its $150 billion worth of reserves, we have confirmed that all deposits residing in iFAST’s Cash Account and Cash Fund are included in the guaranteed schemes.
We refer to the press release from the Ministry of Finance and MAS dated 16 October 2008,
it was stated under point 6 that:-
“The Singapore Government has therefore decided to guarantee all Singapore Dollar and foreign currency deposits of individual and non-bank customers in banks, financial companies and merchant banks licensed by the MAS.”
iFAST Cash Account
iFAST cash account monies are deposited with Standard Chartered Bank, which is licensed by the MAS and therefore are included in the guaranteed scheme.
Cash Fund
Monies in the Cash Fund are deposits with various banks licensed by MAS, and thus Prudential Asset Management has confirmed it will be guaranteed by the Singapore Government till Dec 2010.
Clarification : Note that the guarantee is on the deposits placed with the MAS licensed banks, and not on the actual cash fund.
With this reassurance, there should be no more threat of a mini-run on the cash fund.
I admit I have been one of the culprits, withdrawing my client’s and my own money from the cash fund in recent weeks. I wasn’t quite sure about the safety of one of the banks, LANDESBANK BADEN-WURTTEMBERG, and had decided to play it safe.
Looks like the coast is clear again to move funds back in.