Dear Mr. Tan,
1. Three financial insitutions are taking step to compensate some vulnerable investors. What are your views on this latest development?
Reply: It appears that the vulnerable investors will be compensated for the full amount of their investments, less any coupons that they have received. The only lose the interest on the money that they have invested for the past one or two years. This is a generous settlement. I believe that those who receive the offer will be relieved and happy to receive their money back.
I believe that compensation should also be given to the other investors who do not fall within the "vulnerable group", as they have also been misled into making the investments and were not properly advised about the risks. The prospectus was written in a complicated manner and were not easy to read and understand, even for the educated and knowledgeable investors. In some cases, the prospectus were distributed only after the sale was concluded. The sales representative did not highlight and explain the key information in the prospectus concerining the risks.
I suggest that these investors should be compensated for 50% to 80% of their loss.
2. Did you received any calls from investors, expressing their thoughts upon hearing this news? What's their general impression about chances of getting money back?
Reply: I have received many e-mails from investors who expressed their happiness in getting back their money.
Even those who are outside of the "vulnerable group" are hopeful of getting some compensation, although they are still anxious to know how they will be treated. We will have to wait and see. Many of the investors thanked me for organising the Petition and for speaking at Speaker's Corner to voice out their difficulties.
3. What's your advise to investors now?
Reply: I advice the investors who have not lodge their complaint of mis-selling to do so immediately. They should lodge their complaint with the financial institution that sold the structured product to them.The complaint should highlight the areas where they were misled. They have to lodge their complaint truthfully. Some of the points to be covered are set out in this FAQ:
http://tankinlian.blogspot.com/2008/10/general-advice-to-investors-of.html
4. Will you continue to speak at hong lim park this Sat?
I will continue to hold the meeting at Speaker's Corner on Saturdays from 5 to 7 pm. for the next few weeks, as long as there is a need for the investors to receive an update and to meet with other investors to exchange views and information.
Wednesday, October 22, 2008
DBS Bank, Hong Leong Finance and Maybank to give compensation
http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_293690.html
DBS said 4,700 customers in Singapore and Hong Kong invested S$360 million in these products. In Singapore specifically, 1,400 customers invested S$103 million in High Notes 5.
'We have found that a number of cases did not meet the standards DBS upholds and the bank will be compensating these customers with effect from tomorrow,' DBS said in a statement to the Singapore exchange.
It added that 'our initial expectation of the worst-case scenario whereby investors will lose their entire principal investment amount is likely to materialize.'.........
DBS said 4,700 customers in Singapore and Hong Kong invested S$360 million in these products. In Singapore specifically, 1,400 customers invested S$103 million in High Notes 5.
'We have found that a number of cases did not meet the standards DBS upholds and the bank will be compensating these customers with effect from tomorrow,' DBS said in a statement to the Singapore exchange.
It added that 'our initial expectation of the worst-case scenario whereby investors will lose their entire principal investment amount is likely to materialize.'.........
Marketed to Asians
Mr. Tan,
It suddenly struck me that I should share a nugget of the telephone conversation between my Financial Adviser and I which happened about 2 weeks ago.
My FA had unwittingly revealed to me that, after Lehman Bros went bust, the financial institute she is attached to found out that the structured products were protected from the US investors. She added that they were only marketed to investors in Taiwan, Hongkong and Singapore, apparently because these predominantly Chinese cities have cash rich citizens with a money-saving habit. I could tell that she was insinuating that Lehman knew very well then that those were unworthy and dangerous products for their own people. But of course, the "reason" cited for not allowing US investor participation was "owing to tax reasons". Even the term "Minibond" was coined to deceive the unsuspecting investors they had intended to court in this part of the world.
From the above information, I arrive at the conclusion that we Asians have been bullied, and taken advantage of by the faltering American financial giants. A large number of Asians have been suckered, MAS and the FIs here too have been suckered, having not done thorough research before letting onto our shores such dubiously-named, out-to-deceive investment products. In my opinion, we were all fooled BIG TIME!
Why should this Singaporean group of ill-fated investors be pushed to moan, groan, cry foul and battle their way through to convince everyone that they were indeed innocent victims bearing the brunt of a spectacular con job. Why should they be made to bear a substantial loss of their investment capital, made up of their hard-earned life savings?
SF
It suddenly struck me that I should share a nugget of the telephone conversation between my Financial Adviser and I which happened about 2 weeks ago.
My FA had unwittingly revealed to me that, after Lehman Bros went bust, the financial institute she is attached to found out that the structured products were protected from the US investors. She added that they were only marketed to investors in Taiwan, Hongkong and Singapore, apparently because these predominantly Chinese cities have cash rich citizens with a money-saving habit. I could tell that she was insinuating that Lehman knew very well then that those were unworthy and dangerous products for their own people. But of course, the "reason" cited for not allowing US investor participation was "owing to tax reasons". Even the term "Minibond" was coined to deceive the unsuspecting investors they had intended to court in this part of the world.
From the above information, I arrive at the conclusion that we Asians have been bullied, and taken advantage of by the faltering American financial giants. A large number of Asians have been suckered, MAS and the FIs here too have been suckered, having not done thorough research before letting onto our shores such dubiously-named, out-to-deceive investment products. In my opinion, we were all fooled BIG TIME!
Why should this Singaporean group of ill-fated investors be pushed to moan, groan, cry foul and battle their way through to convince everyone that they were indeed innocent victims bearing the brunt of a spectacular con job. Why should they be made to bear a substantial loss of their investment capital, made up of their hard-earned life savings?
SF
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