Please take part in these surveys:
1. FISCA - Funancial Services Consumer Assocation
2. Compensation for Credit Linked Notes
3. Regular visitors to Tan Kin Lian's Blog
4. Collect 100,000 signatures
Friday, December 19, 2008
Mis-selling of ILPs in the UK
From TKL: I have not been able to accuracy of this information yet.
Dear Mr. Tan
According to one writer, these type of products (ILPs) were designed and sold in the UK in the 1980's & 1990's. A super regulator was brought in called the FSA to clean up an industry that to date has paid compensation to investors in the UK who have lost money in the region of GBP 15,000,000,000 (billion) using these exact same products. That is why they are now 'offshore' so insurance companies can continue to sell these very profitable products in poorly regulated markets in Asia.
Now that they cannot sell in UK or US, they come to Asia and other developing markets like UAE to sell. A foreign insurer sells this plan in Singapore as an offshore product, and MAS is clearing not supervising these offshore insurers. They will bring great harm to our people.
Thanks for your help.
GT
Dear Mr. Tan
According to one writer, these type of products (ILPs) were designed and sold in the UK in the 1980's & 1990's. A super regulator was brought in called the FSA to clean up an industry that to date has paid compensation to investors in the UK who have lost money in the region of GBP 15,000,000,000 (billion) using these exact same products. That is why they are now 'offshore' so insurance companies can continue to sell these very profitable products in poorly regulated markets in Asia.
Now that they cannot sell in UK or US, they come to Asia and other developing markets like UAE to sell. A foreign insurer sells this plan in Singapore as an offshore product, and MAS is clearing not supervising these offshore insurers. They will bring great harm to our people.
Thanks for your help.
GT
Letter of confidentiality
Dear Mr. Tan,
The bank wishes to meet me on my complaint and asked me to sign the following letter of confidentiality. What is your view?
CONFIDENTIALITY UNDERTAKING
We refer to the meeting scheduled to take place today (“the Meeting”).
We agree that the Meeting will be held on a Without Prejudice basis.
By our signature of a copy of this letter we agree as follows:
1. We undertake:
a. not to record the proceedings or discussions during the Meeting (however we may take our own written notes during the meeting);
b. except as otherwise required by law, to keep the Confidential Information confidential and not to disclose it to anyone or use it for any purpose without our express written consent;
c. to ensure that the Confidential Information is protected from unauthorised disclosure or use.
2. We agree to inform you (to the extent permitted by law) of the full circumstances of any disclosure or upon becoming aware that Confidential Information has been disclosed.
3. The obligations in this letter shall survive the termination of any discussions or negotiations between the Bank and us.
4. We acknowledge and agree that each of the Bank and/or Related Person (defined to mean Bank’s officers, directors, employees, professional advisers or any of the Bank’s affiliates) may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you.
5. No failure or delay in exercising any right, power or privilege under this letter will operate as a waiver.
6. The undertakings given by us under this letter are given to the Bank and also for the benefit of each Related Person. We shall keep the Bank and each Related Person fully and effectively indemnified on demand against each and every claim, loss, liability and cost which the Bank and/or a Related Person may suffer or incur as a result of any breach of the provisions of this Letter.
7. If the Account is held in the name of more than one person, our obligations under this letter are joint and several.
8. In this letter "Confidential Information" means without limitation, all discussions, statements, materials, information, document and records in whatever form and any material derived or copied therefrom concerning the Customer, Account, services by the Bank, transactions with the Bank, and any other matters in relation thereto disclosed or furnished to us before, during or after the Meeting, as well as the fact discussions are taking place, that the Meeting is held, that further discussions may be contemplated, and that this confidentiality letter has been entered into.
REPLY
I suggest that you ask the bank to agree that the same conditions stated in the letter of confidentiality should apply to their side as well. It reflects fairness and natural justice. If not, you should not sign this undertaking.
The bank wishes to meet me on my complaint and asked me to sign the following letter of confidentiality. What is your view?
CONFIDENTIALITY UNDERTAKING
We refer to the meeting scheduled to take place today (“the Meeting”).
We agree that the Meeting will be held on a Without Prejudice basis.
By our signature of a copy of this letter we agree as follows:
1. We undertake:
a. not to record the proceedings or discussions during the Meeting (however we may take our own written notes during the meeting);
b. except as otherwise required by law, to keep the Confidential Information confidential and not to disclose it to anyone or use it for any purpose without our express written consent;
c. to ensure that the Confidential Information is protected from unauthorised disclosure or use.
2. We agree to inform you (to the extent permitted by law) of the full circumstances of any disclosure or upon becoming aware that Confidential Information has been disclosed.
3. The obligations in this letter shall survive the termination of any discussions or negotiations between the Bank and us.
4. We acknowledge and agree that each of the Bank and/or Related Person (defined to mean Bank’s officers, directors, employees, professional advisers or any of the Bank’s affiliates) may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you.
5. No failure or delay in exercising any right, power or privilege under this letter will operate as a waiver.
6. The undertakings given by us under this letter are given to the Bank and also for the benefit of each Related Person. We shall keep the Bank and each Related Person fully and effectively indemnified on demand against each and every claim, loss, liability and cost which the Bank and/or a Related Person may suffer or incur as a result of any breach of the provisions of this Letter.
7. If the Account is held in the name of more than one person, our obligations under this letter are joint and several.
8. In this letter "Confidential Information" means without limitation, all discussions, statements, materials, information, document and records in whatever form and any material derived or copied therefrom concerning the Customer, Account, services by the Bank, transactions with the Bank, and any other matters in relation thereto disclosed or furnished to us before, during or after the Meeting, as well as the fact discussions are taking place, that the Meeting is held, that further discussions may be contemplated, and that this confidentiality letter has been entered into.
REPLY
I suggest that you ask the bank to agree that the same conditions stated in the letter of confidentiality should apply to their side as well. It reflects fairness and natural justice. If not, you should not sign this undertaking.
California Governor order 2 day Unpaid Leave
www.bloomberg.com
By Michael B. Marois
Dec. 19 (Bloomberg) -- California Governor Arnold Schwarzenegger may force all state workers to take two days of unpaid leave each month to conserve money amid a record budget deficit and a legislative impasse over how to fix it.
The furloughs would begin in February and would last through June 1010, according to labor union officials who said they were briefed by the administration earlier today.
MY VIEW
This is an excellent way to deal with a downturn. Take unpaid leave, which applies to all employees!
By Michael B. Marois
Dec. 19 (Bloomberg) -- California Governor Arnold Schwarzenegger may force all state workers to take two days of unpaid leave each month to conserve money amid a record budget deficit and a legislative impasse over how to fix it.
The furloughs would begin in February and would last through June 1010, according to labor union officials who said they were briefed by the administration earlier today.
MY VIEW
This is an excellent way to deal with a downturn. Take unpaid leave, which applies to all employees!
Cost of banks
One year ago, Royal Bank of Scotland paid US$100 billion for ABN Amro.
Today, this sum could buy:
Citibank $22.5 billion (74% down)
Morgan Stanley $10.5 billion (-72%)
Goldman Sachs $21 billion (-67%)
Merril Lynch $12.3 billion (-77%)
Deutsche Bank $13 billion (-71%)
Barclays $12.7 billion (-71%)
... and leave a balance of $8 billion:
Today, this sum could buy:
Citibank $22.5 billion (74% down)
Morgan Stanley $10.5 billion (-72%)
Goldman Sachs $21 billion (-67%)
Merril Lynch $12.3 billion (-77%)
Deutsche Bank $13 billion (-71%)
Barclays $12.7 billion (-71%)
... and leave a balance of $8 billion:
Survey by FISCA - Financial Services Consumer Association
A pro-tem committee has been formed to plan the launch of FISCA (Financial Services Consumer Association).
The aims of FISCA are to eduate consumers on financial matters, help them to find the suitable financial products and to assist them on seeking redress on mis-selling and other complaints.
Are you interested to join FISCA? What are the services that you like to use? How much are you willing to pay towards the cost of running FISCA? Should FISCA be independent of funding by the business and Government?
Give your views in this survey:
http://www.surveymonkey.com/s.aspx?sm=NDbqLl_2bU_2bb6xxaIjGarfOw_3d_3d
The aims of FISCA are to eduate consumers on financial matters, help them to find the suitable financial products and to assist them on seeking redress on mis-selling and other complaints.
Are you interested to join FISCA? What are the services that you like to use? How much are you willing to pay towards the cost of running FISCA? Should FISCA be independent of funding by the business and Government?
Give your views in this survey:
http://www.surveymonkey.com/s.aspx?sm=NDbqLl_2bU_2bb6xxaIjGarfOw_3d_3d
No claim discount on motor insurance
Dear Mr. Tan,
Can you please advise me under what conditions can I request my motor insurance company to review their decision on my NCD. My NCD after one accident has been reduced to 20%
JW
REPLY
You can ask the General Insurance Association of Singapore or your own insurance company.
If you are not happy with the decision taken by your insurance company, you should find another insurance company.
Here are some telephone numbers you can call.
http://www.tankinlian.com/faq/motord.html
Can you please advise me under what conditions can I request my motor insurance company to review their decision on my NCD. My NCD after one accident has been reduced to 20%
JW
REPLY
You can ask the General Insurance Association of Singapore or your own insurance company.
If you are not happy with the decision taken by your insurance company, you should find another insurance company.
Here are some telephone numbers you can call.
http://www.tankinlian.com/faq/motord.html
Financial product has high penalty
Hi
I am a financial adviser represenative. Being in the industry, I do not need to look too far for malpractice, misselling, misrepresentation. There are many greedy so-called advisors. They are not interested to recommend Enhanced Incomeshield or Myshield to you because the commissions are really pathetic. It's sad to see that this industry has degenerated to the current state.
It's really sickening to see some cheaters who just sell this V plan and earn $1m a year. The V plan is basically a regular premium investment-linked policy. It's an insurance contract. Everything is contractual - you need to follow the insurer's rules and terms. If you violate them, you will be penalised heavily. For instance, if you stop paying premium in the first 18 months, you will lose all your premiums paid.
The advisers tell you that you can exercise premium holiday after 18 months, bonus allocation. If you alter the terms & conditions of the insurance contract, there's a hefty penalty for you.
Do you know how much you pay for this product? For a premium of $3,200/month for 25-year term, the FA firms or banks will straight away receive about $40,000 in commission, then the adviser would get 60 - 80% of the amount. For 10-year term, the comm is about $16,000. the longer the term, the higher the commission. you see, money comes from somewhere. If the commission to the advisor is so good, no prize for guessing who pays for it. it's YOU my friend.
At $3,200/month, the total premium for 25 years is $960,000 my friend! How many people in singapore can afford this kind of premium, and can comfortably say that they are able to 'finish' it.
I had heard of people being sold $20,000 a month. those so-called advisers are beyond help. Eventually they will pay for their evil deed. they must be jailed for their sins.
You may ask why the they could sell so high a premium to their clients? The clients are equally greedy, about the 'bonus' allocation and the 'high' returns. The 'bonus' is something that you can see but cannot touch. Many people thought that they can cash out the gains after 18 months, but they will lose everything if you surrender in the first year.
This plan has been in the market for 2 years. We shall hear more news of people surrendering, especially in the current economic condition. i predict that this V plan and other similar plan from some offshore insurers will be the CDOs for the FA industry. I am eagerly awaiting more complaints or newspaper reports about this con job.
For those who surrendered and suffered big losses, please share your story, expose those who conned you and your hard-earned money. If you continue to remain silence, the misselling will become more rampant. More unsuspected people like the elderly will be sucked into.
Please help educate people by sharing your stories. or you may write to mr tan kin lian at kinlian@gmail.com, or visit his blog www.tankinlian.blogspot.com, or write to reporters like Lorna Tan of the Straits Times or Genevieve Cua of the Business Times, or Mr. Shane Tregillis of MAS' market conduct deputy MD.
I thank you for your contribution in building a better society.
I am a financial adviser represenative. Being in the industry, I do not need to look too far for malpractice, misselling, misrepresentation. There are many greedy so-called advisors. They are not interested to recommend Enhanced Incomeshield or Myshield to you because the commissions are really pathetic. It's sad to see that this industry has degenerated to the current state.
It's really sickening to see some cheaters who just sell this V plan and earn $1m a year. The V plan is basically a regular premium investment-linked policy. It's an insurance contract. Everything is contractual - you need to follow the insurer's rules and terms. If you violate them, you will be penalised heavily. For instance, if you stop paying premium in the first 18 months, you will lose all your premiums paid.
The advisers tell you that you can exercise premium holiday after 18 months, bonus allocation. If you alter the terms & conditions of the insurance contract, there's a hefty penalty for you.
Do you know how much you pay for this product? For a premium of $3,200/month for 25-year term, the FA firms or banks will straight away receive about $40,000 in commission, then the adviser would get 60 - 80% of the amount. For 10-year term, the comm is about $16,000. the longer the term, the higher the commission. you see, money comes from somewhere. If the commission to the advisor is so good, no prize for guessing who pays for it. it's YOU my friend.
At $3,200/month, the total premium for 25 years is $960,000 my friend! How many people in singapore can afford this kind of premium, and can comfortably say that they are able to 'finish' it.
I had heard of people being sold $20,000 a month. those so-called advisers are beyond help. Eventually they will pay for their evil deed. they must be jailed for their sins.
You may ask why the they could sell so high a premium to their clients? The clients are equally greedy, about the 'bonus' allocation and the 'high' returns. The 'bonus' is something that you can see but cannot touch. Many people thought that they can cash out the gains after 18 months, but they will lose everything if you surrender in the first year.
This plan has been in the market for 2 years. We shall hear more news of people surrendering, especially in the current economic condition. i predict that this V plan and other similar plan from some offshore insurers will be the CDOs for the FA industry. I am eagerly awaiting more complaints or newspaper reports about this con job.
For those who surrendered and suffered big losses, please share your story, expose those who conned you and your hard-earned money. If you continue to remain silence, the misselling will become more rampant. More unsuspected people like the elderly will be sucked into.
Please help educate people by sharing your stories. or you may write to mr tan kin lian at kinlian@gmail.com, or visit his blog www.tankinlian.blogspot.com, or write to reporters like Lorna Tan of the Straits Times or Genevieve Cua of the Business Times, or Mr. Shane Tregillis of MAS' market conduct deputy MD.
I thank you for your contribution in building a better society.
High charges in this investment-linked plan
Hi,
I have just given up on my V investment plan which lasted for 2 years. The investment return is poor (i.e. I lost over 30% of capital and the EURO adventurous fund performed very poorly) and the surrender penalty is very heavy.
What I really dislike about this plan is the lack of transparency and inflexibility, and particularly the lack of control of your funds. There are these expensive management fees and numerous charges. It is an expensive plan (i.e. at least $1,200 per month on a premium of $2,500 per month).
It would be better if you invest in an exchanged traded or index funds for long term investment. ETFs work like a stock and can be traded with minimal management fees unlike unit trusts or managed funds. You can dollar average your payment (when the stock price is low). The advantage is that you can buy and sell the fund (depending on the market) as YOU ARE in control. Right now equities are very low particularly for some blue chips shares. Do some research, be your own fund manager.
Just cut your losses and get rid of the plan. Remember you have to pay 10 years of this plan (otherwise you may incur penalty etc)! Your returns may be very unpredictable. 10 years of bondage to a fund which may not.
VL
I have just given up on my V investment plan which lasted for 2 years. The investment return is poor (i.e. I lost over 30% of capital and the EURO adventurous fund performed very poorly) and the surrender penalty is very heavy.
What I really dislike about this plan is the lack of transparency and inflexibility, and particularly the lack of control of your funds. There are these expensive management fees and numerous charges. It is an expensive plan (i.e. at least $1,200 per month on a premium of $2,500 per month).
It would be better if you invest in an exchanged traded or index funds for long term investment. ETFs work like a stock and can be traded with minimal management fees unlike unit trusts or managed funds. You can dollar average your payment (when the stock price is low). The advantage is that you can buy and sell the fund (depending on the market) as YOU ARE in control. Right now equities are very low particularly for some blue chips shares. Do some research, be your own fund manager.
Just cut your losses and get rid of the plan. Remember you have to pay 10 years of this plan (otherwise you may incur penalty etc)! Your returns may be very unpredictable. 10 years of bondage to a fund which may not.
VL
ProTrader - learn trading in a simulated environment
Read about this simulated game here:
www.tankinlian.com/forms/protrader.pdf
You can play the game here:
www.tankinlian.com/trader
Steps:
1. create an account will your user name and password
2. login
3. click on play
4. select the game
5. enjoy (the game comprise of 10 virtual days .. wait until end of the game)
This game teaches you the skill on day trading, based on the economic news. You can practice many times to get a feel of how the news impact on the price movements of various financial products.
This is for FUN. It is not suitable for long term investors.
www.tankinlian.com/forms/protrader.pdf
You can play the game here:
www.tankinlian.com/trader
Steps:
1. create an account will your user name and password
2. login
3. click on play
4. select the game
5. enjoy (the game comprise of 10 virtual days .. wait until end of the game)
This game teaches you the skill on day trading, based on the economic news. You can practice many times to get a feel of how the news impact on the price movements of various financial products.
This is for FUN. It is not suitable for long term investors.
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