New training programme for remisiers as part of efforts to boost Singapore stock market, transform profession

SINGAPORE: It was a double whammy for remisiers. The Singapore stock market became subdued after the so-called glory days in the 1990s, and online brokerages with cheaper commissions emerged.

"I've been in the industry for 30 years already, it's one of the tougher times - toughest times, in fact," said Mr S Nallakaruppan, president of the Society of Remisiers (Singapore) (SRS).

"Generally speaking, incomes have dropped tremendously. Last time, what we used to do in one day, now we even struggle to do in one month. That is how tough it is," he said, though he added that some are still doing well.

He hopes that after hitting "rock bottom", the only way to go would be up. 

"(We're) waiting for strong positive measures to turn things around," he told CNA on Monday (Sep 30).

Remisiers are licensed trading representatives who receive commission for transactions they handle.

In the past, an active stock market meant that remisiers would be busy with transactions. But with the rise of financial technology firms offering online brokerage services, remisiers have to move up the value chain, said Mr Nallakaruppan.

That's why the SRS and the Securities Association of Singapore (SAS) launched the new Remisier Development Programme, which aims to help remisiers gain new skills and provide more services to their clients.

"We are actually transforming this remisier profession from a transaction-based approach to a more value-added, value-advisory approach," he said.

Licensing for the industry will evolve as well, and this is the transition period before remisiers eventually start managing client portfolios, said Mr Nallakaruppan.

"We want to rejuvenate the brokerage as well as the remisier profession," he said. "Make it exciting, interesting, sexy and all that, so that new entrants can come in."

Remisiers are better than private bankers and relationship managers in the equities and fixed income space, according to him. "We do (this) day in, day out," he said, noting that many remisiers have decades of experience. Two-thirds of SRS members are 60 years old and above.

The Singapore stock market could also benefit, said Mr Nallakaruppan. 

"Remisiers are a microcosm of the market - so once remisiers can add value to clients, clients can make money, it rejuvenates the stock market," he said, adding that it works in tandem with other efforts. "It's not in silos.'"

SAS chairman Luke Lim said the new programme complements other initiatives to develop the stock market in Singapore, including the formation of a review group announced by the Monetary Authority of Singapore.

It addresses the needs of existing remisiers while encouraging new talent to join the industry and build a robust and resilient capital market, he said.

Remisiers can help drum up excitement for healthy initial public offerings in the market, and drive engagement after the stock is listed.

"Remisiers will be the human behind the stock, talking to clients," he said. "There's a key role to play here."

"There are many cylinders firing, but it's important that we do our part."

REMISIER DEVELOPMENT PROGRAMME

Following consultations in April, the SRS and SAS developed three training courses for remisiers to learn how to use artificial intelligence, trade securities and improve their "personal branding".

Each course is a full-day session conducted in person by trainers, including a former remisier.

The Financial Sector Development Fund will provide funding of up to 70 per cent of the course fee of S$800 (US$625) to eligible participants. For SRS members, the remaining 30 per cent of the fees will be sponsored for now.

SRS has around 400 members, and the industry has around 2,000 remisiers.

Mr Lek Yew Meng, a remisier at Lim and Tan Securities, attended all three courses in September as part of the soft launch of the programme.

He said he was interested in attending it because the courses are designed for remisiers.

"It's not a typical personal branding course or AI course which we can get elsewhere," he said. The course covers AI research tools for stockbrokers and for analysis of financial data,

Mr Lek added that having a former remisier conduct the class was helpful as well. 

"We speak the same language, he knows our pain points (and) he illustrates based on industry needs," he told reporters after the launch of the programme.

Mr Louis Koay, a remisier at Phillip Securities, said he plans to attend the courses after hearing what Mr Lek shared.

"I also used to go online and learn (more by) myself, Google, just learn whatever I can," he said. "But usually after I learn, it's a generic concept, I still have to tweak it, apply it to my role."