I have created a new "petition" to collect updated particulars of investors of the credit-linked securities.
I wish to invite investors who signed the Petition previously and new investors who missed the earlier Petition, to provide your particulars again. I am using this platform to collect particulars. I am NOT organising a new petition.
Click here:
http://www.petitiononline.com/PICLS4
Wednesday, October 15, 2008
Jubilee Series 3 LinkEarner Notes
At the request of an investor, I draft this letter for your use. You can sign and send it to the trustee. Please send it on your own, immediately. I am not organising a collective letter.
date
HSBC Trustee
(take the address or fax number from the letter that you received from them)
JUBILEE SERIES 3 LINKEARNER NOTES
I am an investor in the above Notes. I was informed by the distributor that the redemption value of my investment is nil.
My particulars are:
Name:
Account reference:
Amount invested: $
Distributor:
I wish to ask you, as the trustee, to provide the following information to me within 14 days:
a) A full statement of account showing the money invested by all the investors into the Notes, the charges that are taken out of the fund (showing the amount, payee, purpose of payment), the investment of the fund (showing the amount invested and realised value, and loss incurred) and other relevant information.
b) Why were the investors not informed earlier about the intention of the arranger to liquidate the underlying assets? What is the provision of the trust deed relating to this matter?
c) Why were the assets liquidated at this time, when the prices are at rock bottom, due to the lack of liquidity? Was it possible to wait for a better time to liquidate the assets? Which were the parties that bought the assets? How were the prices of these assets determined? Which broker handled the transactions?
d) Please provide details of the underlying assets that led to a total loss of the principal invested in these Notes.
I wish to register my protest at the disposal of the underlying assets at this bad time, and want to be assured that, as the trustee, you have dischrage your fiduciary duty in looking after my interest in the disposal of the assets.
(name of investor,
signature)
cc Monetary Authority of Singapore
date
HSBC Trustee
(take the address or fax number from the letter that you received from them)
JUBILEE SERIES 3 LINKEARNER NOTES
I am an investor in the above Notes. I was informed by the distributor that the redemption value of my investment is nil.
My particulars are:
Name:
Account reference:
Amount invested: $
Distributor:
I wish to ask you, as the trustee, to provide the following information to me within 14 days:
a) A full statement of account showing the money invested by all the investors into the Notes, the charges that are taken out of the fund (showing the amount, payee, purpose of payment), the investment of the fund (showing the amount invested and realised value, and loss incurred) and other relevant information.
b) Why were the investors not informed earlier about the intention of the arranger to liquidate the underlying assets? What is the provision of the trust deed relating to this matter?
c) Why were the assets liquidated at this time, when the prices are at rock bottom, due to the lack of liquidity? Was it possible to wait for a better time to liquidate the assets? Which were the parties that bought the assets? How were the prices of these assets determined? Which broker handled the transactions?
d) Please provide details of the underlying assets that led to a total loss of the principal invested in these Notes.
I wish to register my protest at the disposal of the underlying assets at this bad time, and want to be assured that, as the trustee, you have dischrage your fiduciary duty in looking after my interest in the disposal of the assets.
(name of investor,
signature)
cc Monetary Authority of Singapore
Facilities at Speaker's Corner
1. Can we use the stage, instead of the grass mound?
The stage belongs to the community center. I asked the manager, but he told me that it is not available for booking for the purpose of giving a speech.
2. What are the contingency plan in case of rain?
Bring an umbrella. Wait for the rain to stop.
3. Can we book an indoor auditorium or hall?
It is quite expensive. Can cost $2,000 or more. We do not have the budget.
4. Can we use a sound system?
The NParks does not allow a sound system.
The stage belongs to the community center. I asked the manager, but he told me that it is not available for booking for the purpose of giving a speech.
2. What are the contingency plan in case of rain?
Bring an umbrella. Wait for the rain to stop.
3. Can we book an indoor auditorium or hall?
It is quite expensive. Can cost $2,000 or more. We do not have the budget.
4. Can we use a sound system?
The NParks does not allow a sound system.
Strategy Committee for CLS
Latest: I have sufficient members for this committee for the time being. Thanks for responding.
I wish to ask for volunteers to serve in the Strategy Committee. This committee will meet once a week to discuss the strategy to be recommended for the retail investors. It should comprise of people who are knowledgeable about law or the financial market.
If you are willing to serve in this strategy committee, please send your particulars to kinlian@gmail.com.
Your name
Email
Telephone
Amount invested, product, distributor
Any special expertise?
I wish to ask for volunteers to serve in the Strategy Committee. This committee will meet once a week to discuss the strategy to be recommended for the retail investors. It should comprise of people who are knowledgeable about law or the financial market.
If you are willing to serve in this strategy committee, please send your particulars to kinlian@gmail.com.
Your name
Telephone
Amount invested, product, distributor
Any special expertise?
Statutory declaration - 2 lawyers
I have arranged with two lawyers to assist investors to write a statutory declaration (a statement made under oath) regarding the investment in the structured product.
This declaratoin can be used to support your complaint to the financial institution that sold the structured product to you, and also to take up your complaint to the next stage with the Financial Industry Dispute Resolution Center. As it is a statement made under oath, it is likely to have a stronger impact.
This declaration can be used at a later date, if the investors decide to take legal action against the financial institution.
To prepare this declaration, you have to provide the answers to the following questions:
1. Your name, NRIC, address, telephone
2. How did you get involved in the investment?
3. Which financial institution, branch, amount invested, date
4. What happened when you purchased the investment?
5. Were you alone or accompanied by another person? Who?
6. What did the representative (who sold the investment to you) tell you about investment?
7. Did the representative tell you about any guarantee on your investment?
8. Did they make you sign any form regarding the investment? Did you understand the content of the form? Was it given to you before or after you agreed to make the investment? Did you read the form? Did you understand the content?
9. Did you rely on the advice of the representative in making the investment? Which were the important aspects of the advice?
10. Do you have any other statements to make regarding this matter?
The lawyer fees include the fee payable to the Commissioner of Oath.
Fee $120 plus GST
Bernard & Rada Law Corporation
50 Robinson Road #08-00
VTB Building
Singapore 068882
Call Mr. Glenn Knight or his secretary, Ms Ivy Goh (Tel: 68999888)
Fee $150 plus GST plus disbursement (total $201.55)
Assomull & Partners
111 North Bridge Road
#22-04/05/06 Peninsula Plaza
Singapore 179098
Contact Person: Ms. Lauereth Loh, Tel: 63394466
Note: Previously, I called it an affidavit. A lawyer advised me that an affidavit is a sworn statement made after legal proceeding has commenced. Before that, it is called a "statutory declaration".
This declaratoin can be used to support your complaint to the financial institution that sold the structured product to you, and also to take up your complaint to the next stage with the Financial Industry Dispute Resolution Center. As it is a statement made under oath, it is likely to have a stronger impact.
This declaration can be used at a later date, if the investors decide to take legal action against the financial institution.
To prepare this declaration, you have to provide the answers to the following questions:
1. Your name, NRIC, address, telephone
2. How did you get involved in the investment?
3. Which financial institution, branch, amount invested, date
4. What happened when you purchased the investment?
5. Were you alone or accompanied by another person? Who?
6. What did the representative (who sold the investment to you) tell you about investment?
7. Did the representative tell you about any guarantee on your investment?
8. Did they make you sign any form regarding the investment? Did you understand the content of the form? Was it given to you before or after you agreed to make the investment? Did you read the form? Did you understand the content?
9. Did you rely on the advice of the representative in making the investment? Which were the important aspects of the advice?
10. Do you have any other statements to make regarding this matter?
The lawyer fees include the fee payable to the Commissioner of Oath.
Fee $120 plus GST
Bernard & Rada Law Corporation
50 Robinson Road #08-00
VTB Building
Singapore 068882
Call Mr. Glenn Knight or his secretary, Ms Ivy Goh (Tel: 68999888)
Fee $150 plus GST plus disbursement (total $201.55)
Assomull & Partners
111 North Bridge Road
#22-04/05/06 Peninsula Plaza
Singapore 179098
Contact Person: Ms. Lauereth Loh, Tel: 63394466
Note: Previously, I called it an affidavit. A lawyer advised me that an affidavit is a sworn statement made after legal proceeding has commenced. Before that, it is called a "statutory declaration".
Statutory declaration - FiDREC
Mr. Goh Joon Seng is the chairman of FiDREC. He said that there is no need to prepare a statutory declaration to lodge a complaint to FiDREC. This is correct.
The statutory declaration is optional. I recommended that the investors should spend $120 to prepare this declaration. My reasons are:
a) The lawyer helps to ensure that the key points are recorded in the declaration
b) A sworn statement will be taken more seriously
c) It is necessary to have this strong statement to overcome the statement in the forms that you have signed (which has not been properly explained to you).
As this sum of $120 is small, compared to the money that you have invested, it may be better to incur this expenditure.
The statutory declaration is optional. I recommended that the investors should spend $120 to prepare this declaration. My reasons are:
a) The lawyer helps to ensure that the key points are recorded in the declaration
b) A sworn statement will be taken more seriously
c) It is necessary to have this strong statement to overcome the statement in the forms that you have signed (which has not been properly explained to you).
As this sum of $120 is small, compared to the money that you have invested, it may be better to incur this expenditure.
Take collective legal action now?
Dear Kin Lian
I am writing this with a heavy heart because whilst I and my family may have escaped the misselling by banks of products I know of friends who have been less fortunate.
Firstly I see the attempts at the banks at mediation and the FRC as a dead end road designed primarily to absolve them of legal blame , responsibility and the consequences which it entails. The fact that the mediators are paid by the banks itself speaks volumes about their true intent. It is a blatant attempt at damage control and whilst a small percentage of investors might be ABLE to prove misselling the majority I feel will be unable. It is unclear to me whether if one choses the FRC route does that close the legal route to the courts ? Is arbitration and the solution reached is mandatory and binding.
1. With the mediation route, investors are unable to gain full disclosure and it will be the word of the individual investor versus the word of the management of the banks and the structures and regulations they will claim they have put in place to protect the investor. The cases will be viewed on an individual basis and each investor will thus be easier to pick of on their own
2. A collective legal case if put forth will allow lawyers as in the case of TT Durai to seek and build a case using the full weight of internal documents and emails from the banks with regards to the products they sold and the extent of knowledge they had when they sold it.
This is I believe the strongest case possible for a class action suit as all other roads are in my view an attempt at damage control and a shifting of blame to the individual investor. I hope you will highlight this to your readers.
MY
REPLY
So far, my strategy is to get MAS to act. It is their job. I will ask the investors to consider legal action only after MAS has failed to do "what is right" for the retail investors.
The decision of FiDREC is binding on the financial institution, but is not binding on the retail investor. If the retail investor does not accept the decision of FiDREC, they still have the right to take the legal action at a later date.
I am writing this with a heavy heart because whilst I and my family may have escaped the misselling by banks of products I know of friends who have been less fortunate.
Firstly I see the attempts at the banks at mediation and the FRC as a dead end road designed primarily to absolve them of legal blame , responsibility and the consequences which it entails. The fact that the mediators are paid by the banks itself speaks volumes about their true intent. It is a blatant attempt at damage control and whilst a small percentage of investors might be ABLE to prove misselling the majority I feel will be unable. It is unclear to me whether if one choses the FRC route does that close the legal route to the courts ? Is arbitration and the solution reached is mandatory and binding.
1. With the mediation route, investors are unable to gain full disclosure and it will be the word of the individual investor versus the word of the management of the banks and the structures and regulations they will claim they have put in place to protect the investor. The cases will be viewed on an individual basis and each investor will thus be easier to pick of on their own
2. A collective legal case if put forth will allow lawyers as in the case of TT Durai to seek and build a case using the full weight of internal documents and emails from the banks with regards to the products they sold and the extent of knowledge they had when they sold it.
This is I believe the strongest case possible for a class action suit as all other roads are in my view an attempt at damage control and a shifting of blame to the individual investor. I hope you will highlight this to your readers.
MY
REPLY
So far, my strategy is to get MAS to act. It is their job. I will ask the investors to consider legal action only after MAS has failed to do "what is right" for the retail investors.
The decision of FiDREC is binding on the financial institution, but is not binding on the retail investor. If the retail investor does not accept the decision of FiDREC, they still have the right to take the legal action at a later date.
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