Dear Mr Tan,
I have attended interviews with OCBC Securities( on Jubilee Notes) and ABN AMRO (on Minibond) and the interviewers are using the argument that they are acting as ”Order executor” for customer and thus exempted from giving financial advice as required by Financial Advisers Act. If FI who are distributors of these products can claim such immunity when the products they sold are more risky than insurance or unit trusts, then this is really an unregulated product and the FI are trying to push the responsibility back to MAS.
It is like allowing Chinese medical Hall to sell prescription drug without a licensed Pharmacist but the same drug when sold in Pharmacy must be supervised by Pharmacist. The consequence is disastrous!
I hope you can publish this in your Blog so we can have more reader input on this argument from FI and also confirmation from MAS.
Thank you,
Benedict
Sunday, November 2, 2008
Petitions on Structured Products
Petition #1 had 983 signatures
Petition #4 had 1,017 signatures.
What is the significance of both numbers?
Petition #4 had 1,017 signatures.
What is the significance of both numbers?
Fortnightly Meetings at Speaker's Corner on Structured Products
The schedule of meetings will be:
Saturday 29 November, 5 to 7 p.m.
Saturday 13 December, 5 to 7 p.m.
Saturday 27 December, 5 to 7 p.m.
Apart from the structured products, there will be other speakers talking on other issues relating to life in Singapore.
Watch for further announcements.
Saturday 29 November, 5 to 7 p.m.
Saturday 13 December, 5 to 7 p.m.
Saturday 27 December, 5 to 7 p.m.
Apart from the structured products, there will be other speakers talking on other issues relating to life in Singapore.
Watch for further announcements.
Open Forum with UOB Kay Hian
MESSAGE
We would like to invite all investors who have invested in the Lehman Brothers Minibonds, Merrill Lynch Jubilee and Morgan Stanley Pinnacle Notes through UOB Kay Hian (UOBKH), to participate in an open forum with UOBKH.
This invitation is open to investors regardless of whether you have or have not attended an interview with UOBKH. We are going to request for Mr Hwang Soo Jin, the independent party appointed by the Monetary Authority of Singapore to oversee UOBKH complaints process, to be present at the forum, as we are keen to share our concerns with him.
We have set an agenda for the forum and are extending this invitation to gather as many investors as possible. We believe that with more investors attending this forum, UOBKH cannot ignore our request and will consider more seriously the appeal of all affected investors.
Please submit your name (with some proof that you have invested in one of the above-mentioned notes through UOBKH), your email address and contact number to Mr Ang Soo Cheng at scangpl@yahoo.com by 5 November 2008.
The date for this forum is not yet confirmed, as we have to arrange this with UOBKH. You will be advised when this arrangement is finalised.
Jimmy Liaw
On behalf of the
UOB Kay Hian Investors’ Group
We would like to invite all investors who have invested in the Lehman Brothers Minibonds, Merrill Lynch Jubilee and Morgan Stanley Pinnacle Notes through UOB Kay Hian (UOBKH), to participate in an open forum with UOBKH.
This invitation is open to investors regardless of whether you have or have not attended an interview with UOBKH. We are going to request for Mr Hwang Soo Jin, the independent party appointed by the Monetary Authority of Singapore to oversee UOBKH complaints process, to be present at the forum, as we are keen to share our concerns with him.
We have set an agenda for the forum and are extending this invitation to gather as many investors as possible. We believe that with more investors attending this forum, UOBKH cannot ignore our request and will consider more seriously the appeal of all affected investors.
Please submit your name (with some proof that you have invested in one of the above-mentioned notes through UOBKH), your email address and contact number to Mr Ang Soo Cheng at scangpl@yahoo.com by 5 November 2008.
The date for this forum is not yet confirmed, as we have to arrange this with UOBKH. You will be advised when this arrangement is finalised.
Jimmy Liaw
On behalf of the
UOB Kay Hian Investors’ Group
Send your views directly to MAS
Mr Tan
I am the investor of both highnotes and minibonds. I strongly feel that we are the sacrified losers of these unethical financial products which are allowed to be named as "bonds". We are also misled by the rep of the financial institutions that these products were "approved by MAS" and hence they are "safe" and "low risk".
MAS should adopt a more critical view on these "rotten" products and insist on the followings:
1. All the products should label thier risk factors clearly, ie the consequences investors have to face in case there is a financial crisis occurs. In simple language ,investor will stand to loss how much at the end of the redemption.
2. All the products, like other stocks, should give periodical reports and reviews on the linked institutions. They should give proper advise or alarm to the investors so to let them understand the facts and make decision for early redemption or not. Other words, they should not cover up the facts and tell investors that the products are "safe".
3. MAS and the Banks have duties to look after the interest of the investors, not just to achieve the target of selling the products and make
profits out of the selling.
REPLY
I suggest that you write directly to MAS. You can also get a few investors to sign a collective letter.
ok?
I am the investor of both highnotes and minibonds. I strongly feel that we are the sacrified losers of these unethical financial products which are allowed to be named as "bonds". We are also misled by the rep of the financial institutions that these products were "approved by MAS" and hence they are "safe" and "low risk".
MAS should adopt a more critical view on these "rotten" products and insist on the followings:
1. All the products should label thier risk factors clearly, ie the consequences investors have to face in case there is a financial crisis occurs. In simple language ,investor will stand to loss how much at the end of the redemption.
2. All the products, like other stocks, should give periodical reports and reviews on the linked institutions. They should give proper advise or alarm to the investors so to let them understand the facts and make decision for early redemption or not. Other words, they should not cover up the facts and tell investors that the products are "safe".
3. MAS and the Banks have duties to look after the interest of the investors, not just to achieve the target of selling the products and make
profits out of the selling.
REPLY
I suggest that you write directly to MAS. You can also get a few investors to sign a collective letter.
ok?
New swap counterparty to replace Lehman Brothers
Many investors asked for my view about the new swap counterparty that will be appointed to replace Lehman Brothers. Will they be able to get their money back on the maturity of the mini-bonds?
My reply: It depends on the series of mini-bonds.
The risk of the mini-bonds come from the following sources:
> failure of any one of the reference entities
> failure of the underlying assets (CDOs or other assets)
> failure of the swap counterparty
If you have invested in the earlier series of mini-bonds and many of the underlying assets have already failed, you may lose all of your money when more of the assets failed in the future. You will also lose your money when any one of the reference entities failed.
If none of these events happened, you may get back part or all of your investments (depending on the value of the underlying assets at that time). There is no guarantee that you can get back 100% of the invested sum, as the bonds are "capital protected" but not "capital guaranteed".
Read this:
http://tankinlian.blogspot.com/2008/10/capital-protected-product.html
For the newer series of the mini-bonds, the loss in value now is quite small. When the new swap counter-party is found, you can sell the mini-bonds at its current market value (hopefully, the loss is less than 20%). If you do not wish to take the risk, you can take the loss now.
If you have been mis-sold, you can ask the financial institution to buy back the mini-bonds at your original price
My reply: It depends on the series of mini-bonds.
The risk of the mini-bonds come from the following sources:
> failure of any one of the reference entities
> failure of the underlying assets (CDOs or other assets)
> failure of the swap counterparty
If you have invested in the earlier series of mini-bonds and many of the underlying assets have already failed, you may lose all of your money when more of the assets failed in the future. You will also lose your money when any one of the reference entities failed.
If none of these events happened, you may get back part or all of your investments (depending on the value of the underlying assets at that time). There is no guarantee that you can get back 100% of the invested sum, as the bonds are "capital protected" but not "capital guaranteed".
Read this:
http://tankinlian.blogspot.com/2008/10/capital-protected-product.html
For the newer series of the mini-bonds, the loss in value now is quite small. When the new swap counter-party is found, you can sell the mini-bonds at its current market value (hopefully, the loss is less than 20%). If you do not wish to take the risk, you can take the loss now.
If you have been mis-sold, you can ask the financial institution to buy back the mini-bonds at your original price
Adolf Hitller complains about the ERP and MRT
By courtesy of Loh Hon Chun:
Even Adolf Hitler complains about the ERP and MRT in Singapore.
http://hongjun.blogspot.com/2008/09/hitler-complaining-about-erp-and-mrt.html
Even Adolf Hitler complains about the ERP and MRT in Singapore.
http://hongjun.blogspot.com/2008/09/hitler-complaining-about-erp-and-mrt.html
Buy a property that you can afford
How much should a person pay for a property? This is an important question. So far, there is no guide on this matter.
When property prices goes up, too many people spent too much money on buying a property thinking that it will go up forever. When the property prices reach a ridiculous level and falls from there, it can cause a lot of problem to the financial system.
I suggest that the limit should be:
> 7 years of the breadwinner's income
> 5 year of the combined family income
If one spouse is working with an annual income of $40,000, the limit should be $280,000. If both spouses are working with an annual income of $70,000, the limit should be $350,000.
In working out the guideline, I have taken into consideration the percentage of income that goes to service the housing loan, the repayment period of 30 years and the long term level of interest rate, and future increase in earnings.
I hope that this gudeline is useful for most people You should not exceed the limit. It is all right to buy a property below this limit.
When property prices goes up, too many people spent too much money on buying a property thinking that it will go up forever. When the property prices reach a ridiculous level and falls from there, it can cause a lot of problem to the financial system.
I suggest that the limit should be:
> 7 years of the breadwinner's income
> 5 year of the combined family income
If one spouse is working with an annual income of $40,000, the limit should be $280,000. If both spouses are working with an annual income of $70,000, the limit should be $350,000.
In working out the guideline, I have taken into consideration the percentage of income that goes to service the housing loan, the repayment period of 30 years and the long term level of interest rate, and future increase in earnings.
I hope that this gudeline is useful for most people You should not exceed the limit. It is all right to buy a property below this limit.
NTUC Income is different today
Dear Mr Tan,
I will not buy anymore structured products or anything sold by financial institutions after this lesson. I wished I had seek your advice two years ago.
But you also mentioned don't invest in whole life, endowment, policies, etc. I don't understand what you mean? I had total 8 policies with Income and all bought when you were CEO. Can you explain please?
REPLY
I also had 15 whole life and endowment policies over the years from NTUC Income, covering me and my family members. These policies offered good bonuses and a fair return on maturity in the past years.
Today, things are different. Income is now run on different principles - quite similar to the other insurance companies. I have decided to cancel a whole life policy, where the bonus has been cut.
I will decide on the other policies later.
I will not buy anymore structured products or anything sold by financial institutions after this lesson. I wished I had seek your advice two years ago.
But you also mentioned don't invest in whole life, endowment, policies, etc. I don't understand what you mean? I had total 8 policies with Income and all bought when you were CEO. Can you explain please?
REPLY
I also had 15 whole life and endowment policies over the years from NTUC Income, covering me and my family members. These policies offered good bonuses and a fair return on maturity in the past years.
Today, things are different. Income is now run on different principles - quite similar to the other insurance companies. I have decided to cancel a whole life policy, where the bonus has been cut.
I will decide on the other policies later.
Upset investor share bad experience with bank
Mdm Ng speaks at Hong Lim:
http://www.youtube.com/watch?v=QxP4Kz5MSG0
http://www.youtube.com/watch?v=QxP4Kz5MSG0
How to track all comments on my blog
Mr Tan,
To track all comments on your blog, one could subscribe to this feed:
http://tankinlian.blogspot.com/feeds/comments/default
To track comments to a particular post in your blog, the feed url can be found at the bottom of that post.
Once you've the feed url, you can read it using any feed reader. The most popular feed reader is Google Reader:-
1. Go to http://www.google.com/reader
2. Create a Google account if you do not have one
3. Click "Add Subscription"
4. Enter the feed URL
On Internet Explorer, entering the feed url directly into the address bar will allow you to see the feed.
Regards,
Jeremy
To track all comments on your blog, one could subscribe to this feed:
http://tankinlian.blogspot.com/feeds/comments/default
To track comments to a particular post in your blog, the feed url can be found at the bottom of that post.
Once you've the feed url, you can read it using any feed reader. The most popular feed reader is Google Reader:-
1. Go to http://www.google.com/reader
2. Create a Google account if you do not have one
3. Click "Add Subscription"
4. Enter the feed URL
On Internet Explorer, entering the feed url directly into the address bar will allow you to see the feed.
Regards,
Jeremy
Political ambitions?
Some people commented that I have political ambitions. This question has been raised by journalists before. I have given my replies here:
Zaobao
http://tankinlian.blogspot.com/2008/10/interview-with-zaobao.html
Today paper
http://tankinlian.blogspot.com/2008/10/interview-with-today-paper.html
I am already 60 years old and have more than enought savings to take care of my future needs and my family. I do not need to have "political ambitions" for my personal benefit.
I will continue my efforts until the mis-selling of the structured products is resolved satisfactorily.
Zaobao
http://tankinlian.blogspot.com/2008/10/interview-with-zaobao.html
Today paper
http://tankinlian.blogspot.com/2008/10/interview-with-today-paper.html
I am already 60 years old and have more than enought savings to take care of my future needs and my family. I do not need to have "political ambitions" for my personal benefit.
I will continue my efforts until the mis-selling of the structured products is resolved satisfactorily.
Intention to deceive?
Comment posted in my blog
Being a victim of Minibond, I can't help but to suspect:
(1) swap ctt, reference entities are just smoke screens to divert our attention from the underlying securities, CDO
(2) could the real purpose be: to get rid of the toxic CDO?
If above suspicions are true, then the intention to deceive starts from the product design stage! We will have a strong case to demand compensation, whether in FIDRec or Court.
Only the authorities have the rights to open the records/ correspondences in the arranger & issuer, & determine whether (1) & (2) are true or false.
If true, bring the culprits to Court on behalf of the investors! If false, at least the investors know the truth.
I'm pinning my hope on HKMA and MAS.
Being a victim of Minibond, I can't help but to suspect:
(1) swap ctt, reference entities are just smoke screens to divert our attention from the underlying securities, CDO
(2) could the real purpose be: to get rid of the toxic CDO?
If above suspicions are true, then the intention to deceive starts from the product design stage! We will have a strong case to demand compensation, whether in FIDRec or Court.
Only the authorities have the rights to open the records/ correspondences in the arranger & issuer, & determine whether (1) & (2) are true or false.
If true, bring the culprits to Court on behalf of the investors! If false, at least the investors know the truth.
I'm pinning my hope on HKMA and MAS.
Key features of structured products
I want to thank Goh Meng Seng for helping me to translate my speech into Chinese at Speaker's Corner.
Meng Seng has also the key features of the structured products in English and in Chinese in his blog.
I invite you to read them:
http://www.singaporealternatives.blogspot.com/
Meng Seng has also the key features of the structured products in English and in Chinese in his blog.
I invite you to read them:
http://www.singaporealternatives.blogspot.com/
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