Bank or Fund Manager

Chocolate Finance: A Sweet Deal or a Bait?

For less-savvy investors, wealth investing platform Chocolate Finance appears to offer some sweet deals. But industry watchers warn that customers must always read the fine print.

Attractive Offers, but Read the Fine Print

On its homepage, Chocolate Finance dangles the prospect of “a new place for your spare cash”, with “happy returns” of 3.3 per cent a year on the first S$20,000, and 3 per cent annually on the next S$30,000.

Promise of Flexibility and Transparency

Customers are also promised that they can withdraw their money any time, with no restrictions or penalties. And there is the Chocolate Visa debit card, which allows you to “spend with ease” and enjoy “probably the best FX rates in town”.

What’s Behind the Sweet Deals?

Some observers say the firm had marketed itself like a bank. While it did not call the cash that investors put into the platform “deposits” – as a bank would – customers would have to do some digging into the frequently asked questions page and terms and conditions to realise that they are actually buying investment products, and that their money would be invested into a portfolio of fixed-income funds.

A Clear Distinction

To be clear, Chocolate Finance is not a bank, but a fund manager with a capital markets services (CMS) licence from the Monetary Authority of Singapore (MAS).

Conclusion

While Chocolate Finance may offer attractive deals, it is crucial for customers to understand the differences between a bank and a fund manager. Industry watchers stress that customers must always read the fine print to avoid being misinformed or misled.

FAQs

Q: What is Chocolate Finance?

A: Chocolate Finance is a fund manager with a capital markets services (CMS) licence from the Monetary Authority of Singapore (MAS).

Q: Is Chocolate Finance a bank?

A: No, it is not a bank.

Q: What kind of products does Chocolate Finance offer?

A: Chocolate Finance offers investment products, including fixed-income funds.

Q: Can I withdraw my money at any time?

A: Yes, according to Chocolate Finance, customers can withdraw their money at any time, with no restrictions or penalties.

Q: What is the purpose of the Chocolate Visa debit card?

A: The Chocolate Visa debit card allows customers to “spend with ease” and enjoy “probably the best FX rates in town”.