Is it a bank? Is it a fund manager? Chocolate Finance meltdown highlights need for clear distinction

[SINGAPORE] 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.

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.

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”.