I just got a letter from OCBC regarding the Blue Chip Investment Plan that I am on. It has updated some terms and conditions that govern this product with effects from 15 Sept 2014.
Most of them relate to cut-off dates which they will withdraw money from your account for the shares purchase and these does not affect me much.
What is interesting about the new conditions is the one that determine how much shares will be allocated with each purchase. From their website, I have extracted the condition.
"On completion of the execution of the aggregated Purchase Instructions, the actual number of shares/units of each Security allocated to each Customer is computed by dividing Net Investment Amount by the Average Purchase Price, rounded down to the nearest whole number.
For Cash settlement, OCBC Bank will credit the unutilised portion of the Gross Investment Amount after excluding the fees (i.e. the residual monies which was not utilised to purchase Securities) back to the Customer’s GIRO-linked account.
For SRS settlement, OCBC Bank will only debit an amount equivalent to the gross investment amount plus fees for the Securities actually purchased from the Customer’s SRS account."
As some of your may have know from my earlier post, I wrote about the hidden cost of investing in BCIP. With this new condition in place, it effectively remove the hidden cost and I am very happy with the way the product operates now.
Well done OCBC for listening to consumer feedback!
