Saturday, November 22, 2008

Plea to MAS - investors of Pinnacle Notes

Managing Director,
Monetary Authority of Singapore

82 individual holders of Pinnacle Notes arranged by Morgan Stanley Asia (S) Pte Ltd have co-signed a self-explanatory Plea to MAS on their plight in their investment in the said Notes. On their behalf, I am handing over herewith the Plea together with their signature sheets and details as stated therein.

We hope that MAS will respond positively to our Plea as we are at our wit’s end as to how to protect whatever good values that remain in our investments. We have also enclosed Morgan Stanley’s latest indicative valuation of various Pinnacle Notes which one of us had obtained through his broker. As you can see, many of these have devalued down to barest values. We understand that these devaluations had occurred rapidly in recent weeks. On top of that, we are in the dark as to the timing and exact root causes of the devaluation. Morgan Stanley is also not providing such information to us even though some of us had asked for them through our brokers.

We will be most happy to take your response in any form you deem appropriate, be it directly to me on their behalf, through a press statement or any other means.

As a matter of courtesy, I wish to advise you that I will shortly be posting a copy of the Plea, in a website which the signors have agreed, to enable them to access a copy for their records as most of them did not get one for keeps at the time of the signing at Hong Lim Park due to lack of photo-copying facilities at the site.
Thank you.

signed
sb

www.tankinlian.com/forms/PleaToMAS.pdf

Manifesto - the future of Singapore

KC asked me to write a manifesto of what I want to do, if I get into public office. My views are already reflected in several postings in my blog. They cover moral values, economic and social issues, etc.

I like to invite other readers to post your views about what you like to see regarding the future of Singapore.

Battle of the mind and the heart

Dear Sir,

I am writing this e-mail in response to the statement: "It is not my interest or ambition to stand for election. If I do not get 100,000 signatures, I have the excuse to opt out - that this is a bad idea. I am willing to leave this to the voice of the people...."

Frankly, I do not agree with some of the things you have said and the way you have said them, and some of the things you did and the way you do them, but I believe what you are doing is for the sake of the Republic and her people and not for any personal gain or ambition.

From your statements, I can somehow sense that your mind is constantly asking you to opt out while your heart is begging you to take this course.

This further cement my views that you are doing this for the right reason and you strongly believe in serving the people of the Republic.

By giving you my support and my signature, I am also taking away your option (1/100,000) to opt out and to take your views and strengths to a bigger stage and platform where you have the power to do more for the people you care so much for.

I would like to further suggest that you consider writing a Manifesto to set out your strategic direction and outlines of any prospective legislation changes you would like to bring about if you are elected to public office and why you would like to change them.

Best Regards

KC

Reveal your identity

Somebody asked me to "be fair" and allow his critical comment to be posted. I agreed to his request.

Normally, I expect a person to use his real name, if he wish to post a comment to criticise any person or view. If you do not wish to reveal your identity, you should post your view neutrally and do not attack or pass judgement on another person.

Useful role for financial advisers

I believe that financial advisers (i.e. insurance agents and sales representatives) have the responsibility to give appropriate advice to the consumers and they should be fairly paid for their time and effort.

The commission system and sales targets are the source of the malpractice. If a distributor or adviser can earn $6,000 (3% of $200,000) to sell a credit linked note within 30 minutes, something must be wrong. Of course, the adviser will say that the product is good, safe, approved by MAS, etc.

I encourage financial advisers to give independent and good advice for a fee of $100 or $150 an hour and to keep the advice within 1 or 2 hours. A doctor is also paid for the time that is spent to treat a patient, and does not receive a commission for the medicine that is prescribed.

Moral values and ethics

I posted a blog on my moral values and ethics, as follow:
http://tankinlian.blogspot.com/2008/11/personal-values-and-characters.html

Many people agree that it is important to have good values, as they drive our conduct and relations with other people.

A retired teacher lamented to me that in recent years, our young students are taught technical and work skills, but are lacking in moral values and ethics. Nowadays, it seems to be all right to "cheat" people to increase profits. Just say, "caveat emptor".

I hope that some of the moral values will wake our government leaders to do the right thing - the values of honesty, courage, fairness, looking after the interest of others - to name just a few.

A few readers were uncomfortable about my statement of values. They felt that I should not be "preaching" these values. I think that it is the duty of all members of society to articulate the values that should guide the future of our society. I hope that more people can come forward to express their views on this matter.

Investors to see your Member of Parliament

I have sent the following message to the investors to meet their Member of Parliament in a group.

Some investors said that they have met their MP earlier, and their MP have not acted. You should see the MP again, and again.

It is the duty of the MP to look after your interest. As many people are affected, you should continue to see your MP - until the MP has taken the appropriate action.

All the best!

Dear Friends,
I suggest that you should contact the other investors in your constituency and arrange to see your Member of Parliament at the Meet-the-People session. Tell your MP about how you were misled into investing in the credit linked notes. Let the MP know about this matter for the victims directly. Ask your MP to take up the matter in Parliament or with MAS.

You can get information about your MP from this website:http://www.parliament.gov.sg/

The investors in your postal sector are shown in the attached Excel spreadsheet. I hope that a few of you can take the lead to contact the other investors and organise the visit to see your MP.

Speak up for our rights

Dear Mr. Tan

It is very courageous of you to give a voice and help those Lehman and Pinnacle investors. I hope you do not get into trouble with the authority or banks.

You know I feel our senior X has tamed us Singaporean over the course of 20-30 years to just obey the authority. Whatever is implemented by the government, to just accept it!!!

We Singaporean do not dare to stand up for our rights and do not have a voice of our own unlike Hong Kongers, Thailand, Koreans who dare to street protest. But I do not think that street protest is not good for the economy.

If not for you, I do not think the Lehman/Pinnacle investors would dare to go to speakers corner or question the banks/ stock brokerage.

Mrs Y

Assessment of liability

Dear Mr. Tan

My car lately got involved in an accident (side collision) at no fault of mine. The driver cut into my lane, done damage to my car and twisted the whole story to say it was my fault.

I had no evidences against him(no pics, no eye witness), hence, the verdict of the liability status given by INCOME was, I am to be responsible for 50% of this accident's fault.

But I am the victim of the accident. Yet I am to be responsible for the other party's irresponsible driving.

I disputed against this 50% liability status with INCOME. But their assessment still stands. But deriving at the liability status basing merely on statement provided, has done unjustice to my case. INCOME did not carried out any professional inspection
on my car, to at least gathered some 'collision evidence', like the angle and dent on my car, how can it be possibly me swerving into the other party's lane.

I wish to know who i can turn to dispute against this unfair assessment?

Mdm Ong

REPLY
Income has to make the assessment based on the available evidence. Under this type of situation, an assessemnt of 50% liability seems to be reasonable - especially as you are not able to produce evidence that the other party swerve to hit your car.

It is possible that the other party could have made a statement that you swerve your car to hit his car. It is one person's word against another.

If you still feel aggrieved about the decision, you can lodge a complaint with FIDREC (www.fidrec.com.sg).

Dear Mr Tan

Thank you for taking your precious time to answer my question. Indeed, the other party has made the statement to say that my car swerve into his lane, which is an falseful allegation.

I had told INCOME I will raise my dispute to FiDREC and INCOME has actually asked me to go ahead with it for any mediation.

I guess for this case, I will have to let it rest and just blame it on my bad luck. I think FiDREC can't do much about it since I do not have any evidence against the other party.

Mdm Ong