Class action on credit linked notes

It is important for the investors to contact their group leaders and get ready for the class action. You should register with the group leaders now on a "in-principle" basis. This allows the group leaders to know your contact details. As this is "in-principle", it does not commit you to make any payment now. You can also withdraw later.

After registering for the "in-printiple" basis, you can still wait for the offer from the financial institution or lodge the complaint with FIDREC. In case, FIDREC rejects your complaint or offer an inadequate sum, you can proceed with the class action.

You must register now. If you wait until a later date, you may miss the boat. I will not be able to help you at the last minute.  The contact persons are found here.

Compensation for the Credit Linked Notes

The general public in Singapore had the impression that most of the investors in the credit-linked notes (i.e. minibonds, high notes, pinnacle notes, jubilee notes) had been compensated. The newspapers reported that 25% had full compensation and 32% had partial compensation.

Several people talked to me about this matter. I gave them the following facts and observations:

1. Most investors who received full compensation invested small sums, i.e. $20,000 or less.

2.  Most investors who invested large sums, i.e. $50000 or more, received rejection letters

3.  Most offered partial compensation rejected the offer, as the amount was too small

4.  I estimate that the actual compensation is probably 10% to 15% of the invested sums

Most people that I talked to were shocked! They had been given the wrong impression through reading the newspapers. They now realise that the perception and reality are quite different. Many investors are still very disappointed and angry.

Survey results

SFC may use stick to force banks into minibond setttlements

The Securities and Futures Commission may disqualify banks from selling securities products if they are not willing to follow the example set by Sun Hung Kai Investment Services over the minibonds saga, sources said.

The company agreed late last month to refund up to HK$85 million to investors who bought structured notes linked to collapsed US investment bank Lehman Brothers.

The regulator will first deal with big banks, the sources said.

The SFC is now liaising with banks to try to get them to settle with minibond investors by using the Sun Hung Kai Investment deal as a reference and may resort to disciplinary action, the sources said.

Source

Minibond probe into several lenders expected to end soon

Dennis Eng
Feb 06, 2009

The Securities and Futures Commission is expected to wrap up some of its investigations into the Lehman Brothers minibonds saga soon, sources say. It is understood its investigations involve several big banks.The sources said it was hoped the banks would follow the example set by Sun Hung Kai Investment Services, which last month agreed to refund fully the ...
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Source:

Opinion of Queen's Counsel

For strategic and confidentiality reasons, I will not be reporting on the opinion of the Queens Counsel through this blog. 

I will provide the information to the leaders of the various groups, ie Minibond, High Notes, Pinnacle Notes and Jubilee Notes). We have also approached several Senior Counsels in Singapore and some have agreed to advise these groups.  

If you have invested to take legal action, you have to join the respective groups. The contact persons are shown here.