Dmort Business Solution

Investors are advised to read carefully the derivative contract facilities before investing in this product. If necessary, investors are asking all the worst that may happen before signing the contract agreement.

Yes, again this ancient principles need to be reminded to investors because many investors assessed the lazy to read the contract agreement and the original play’s signature alone. In fact, whether of family education or education at the school during his childhood, surely everyone has heard the adage ‘Researching before you buy’.

“This is not to blame the investors. But sometimes the pursuit of foreign investors only interest without regard to the contents of the contract. This is what often creates problems in derivative contracts, in most cases about derivative transactions unfolding global financial markets after the collapse of the third quarter of 2008, arguably most of the blame lies on the part of investors rather than the financial institutions that provide facilities derivatives.

“I see, so far as giving the bank facility was very obedient derivatives regulation. But it sometimes raises a number of issues which I think is caused by several factors,”  the most important factors that could potentially cause problems is the lack of knowledge of derivatives investors about investing in derivative products. According to him, investors sometimes forget that investing always has risks.

“Most investors think the investment is always safe and there is no risk. And one of the main principles of investment are always risks of investment. Typically, a result of this mindset, when their investment income, appear was a commotion. His bank was to blame and so on. And if seen, the banks have been very obedient rule anyway, still expressed the possibility of bank marketing team is pursuing a strategy of giving facilities derivative derivative product sales packaging with very fine, so it managed to attract investors to buy their products without doing a deeper explanation about the products they sell.

“If this had happened and the customer has a signature, the bank is not in the wrong position. Therefore, it is important investors take an active role before signing the contract agreement. If investors need to ask all the worst that might happen,” said Aviliani.

Moreover, continued Aviliani, investors must ask the underlying funds where they will be placed later. According to him, this is very important because many derivatives contracts that seemed to give promise of the return (return) is impossible.

“There are some cases where a derivative product offering returns of up to 30%. It’s impossible. Investors need to know where their funds are placed later. Investors must ask the underlying derivative products they buy,”The development of derivative products is very fast, even beyond the speed of adaptation of regulations governing the subject. I see the banks are quite cautious in following the development of derivatives. But to watch is the derivative products issued by non-bank institutions, because more lax oversight, “said Aviliani.

Aviliani said the supervision of Bank Indonesia (BI) to the banking institutions in derivative products has been quite tight. This is proved by a ban on banks sell derivative products that are speculative in December 2008.

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