I have extracted the particulars of 273 investors who signed the Petition to MAS to review the sales training and marketing process of the financial institutions. I will be sending the Petition to MAS today.
It does not matter that other people did not sign yet. The number of signatories is more than sufficient.
If MAS acts and carries out the review, and found that the bank has not provided sufficient training to the sales representatives, it will be helpful to the investors who have been misled.
Investors who bought directly from the brochures or advertisements, can claim that the sales materials were misleading, and that essential information have been withheld, or were presented in a misleading way. Your case is not as strong as those who were misled by the sales representatives, but there are grounds to support your case as well.
All the best!
Thursday, October 16, 2008
HK: Tsang vows to get justice for minibonds investors
Tsang vows to get justice for minibonds investors
Bonnie Chen, Diana Leeand Beatrice Siu
Friday, October 17, 2008
Chief Executive Donald Tsang Yam- kuen has pledged to help those caught up in the Lehman Brothers minibond row get justice if any criminal or civil liability is identified.
"Officials found guilty of misconduct in handling the Lehman Brothers minibond saga will be punished but it is not an appropriate time to see who should be responsible - all efforts should be focused on tackling the matter," Tsang said in response to a question by financial services legislator Chim Pui- chung in the Legislative Council.
Much as he hopes litigation could be avoided, he promised to pursue cases to the end. "If cases are found to have criminal liability, we will follow up seriously," he said.
Banks involved in the case are expected to respond today to Tsang's ultimatum on a buyback proposal.
Also, the Hong Kong Association of Banks will announce the appointment of Ernst & Young to evaluate the value of all Lehman-related products, including minibonds and equity-linked notes, or ELNs. The ELN evaluation is expected to be completed next Friday.
Meanwhile, DBS Bank (Hong Kong) has reportedly settled with two clients. In one case, a man surnamed Chan said his 84-year-old mother and 50-year- old brother had bought HK$560,000 worth of ELNs from the bank.
Chan declined to disclose the amount of compensation but said the bank told his family that it was a capital preservation product that would have interest paid every three months. He said the bank staff admitted they realized his brother had a mental illness.
A spokeswoman for DBS Bank (Hong Kong), however, clarified that as of yesterday, "the bank has not made any settlements with any parties on the grounds of alleged mis-selling."
Tsang reiterated the administration will inject capital to the Consumer Legal Action Fund if necessary. "But I hope banks will not seek litigation. Reputation is an invaluable asset to banks. It will be shameful and troublesome to banks if they go to court and it is time-consuming too," he said.
Tsang rejected Chim's idea of setting up a special court to handle the Lehman saga as impractical. Neither did he accept Civic Party chairwoman Audrey Eu Yuet-mee's suggestion of settling the problem through arbitration.
Tsang said both parties had to agree on arbitration or the case will have to be handled by the court. The Hong Kong Monetary Authority, he said, will also set up a mediation group for this purpose.
Spokesmen for the Bank of East Asia, ABN Amro, ICBC (HK) and Dah Sing Bank said they are considering the buyout proposal.
Consumer Council chief Connie Lau Yin-hing declined to say whether the current HK$16 million litigation fund would be enough to help people caught up in the Lehman scandal. She also hoped the problem could be solved by mediation.
Up to yesterday, the council had received 1,702 complaints from investors, involving a total amount of HK$12
http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=73064&sid=21037896&con_type=1
Bonnie Chen, Diana Leeand Beatrice Siu
Friday, October 17, 2008
Chief Executive Donald Tsang Yam- kuen has pledged to help those caught up in the Lehman Brothers minibond row get justice if any criminal or civil liability is identified.
"Officials found guilty of misconduct in handling the Lehman Brothers minibond saga will be punished but it is not an appropriate time to see who should be responsible - all efforts should be focused on tackling the matter," Tsang said in response to a question by financial services legislator Chim Pui- chung in the Legislative Council.
Much as he hopes litigation could be avoided, he promised to pursue cases to the end. "If cases are found to have criminal liability, we will follow up seriously," he said.
Banks involved in the case are expected to respond today to Tsang's ultimatum on a buyback proposal.
Also, the Hong Kong Association of Banks will announce the appointment of Ernst & Young to evaluate the value of all Lehman-related products, including minibonds and equity-linked notes, or ELNs. The ELN evaluation is expected to be completed next Friday.
Meanwhile, DBS Bank (Hong Kong) has reportedly settled with two clients. In one case, a man surnamed Chan said his 84-year-old mother and 50-year- old brother had bought HK$560,000 worth of ELNs from the bank.
Chan declined to disclose the amount of compensation but said the bank told his family that it was a capital preservation product that would have interest paid every three months. He said the bank staff admitted they realized his brother had a mental illness.
A spokeswoman for DBS Bank (Hong Kong), however, clarified that as of yesterday, "the bank has not made any settlements with any parties on the grounds of alleged mis-selling."
Tsang reiterated the administration will inject capital to the Consumer Legal Action Fund if necessary. "But I hope banks will not seek litigation. Reputation is an invaluable asset to banks. It will be shameful and troublesome to banks if they go to court and it is time-consuming too," he said.
Tsang rejected Chim's idea of setting up a special court to handle the Lehman saga as impractical. Neither did he accept Civic Party chairwoman Audrey Eu Yuet-mee's suggestion of settling the problem through arbitration.
Tsang said both parties had to agree on arbitration or the case will have to be handled by the court. The Hong Kong Monetary Authority, he said, will also set up a mediation group for this purpose.
Spokesmen for the Bank of East Asia, ABN Amro, ICBC (HK) and Dah Sing Bank said they are considering the buyout proposal.
Consumer Council chief Connie Lau Yin-hing declined to say whether the current HK$16 million litigation fund would be enough to help people caught up in the Lehman scandal. She also hoped the problem could be solved by mediation.
Up to yesterday, the council had received 1,702 complaints from investors, involving a total amount of HK$12
http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=73064&sid=21037896&con_type=1
Petition to investigate the sales training
A financial institution has announced that they will compensate investors who can prove that they have been "mis-sold".
This Petition is to ask MAS to investigate the sales training process of the financial institutions. If the training materials did not show the actual nature and risks of the products, it will show that the sales representatives had provided the wrong information or recommendation to the retail investors, i.e. misrepresentation or mis-selling.
Please read the wordings of this petition carefully. If you agree with the content, you can sign the Petition.
http://www.petitiononline.com/ISTFI1/petition.html
This Petition is to ask MAS to investigate the sales training process of the financial institutions. If the training materials did not show the actual nature and risks of the products, it will show that the sales representatives had provided the wrong information or recommendation to the retail investors, i.e. misrepresentation or mis-selling.
Please read the wordings of this petition carefully. If you agree with the content, you can sign the Petition.
http://www.petitiononline.com/ISTFI1/petition.html
Who let the sharks in?
Here is a story told by Betsybug
The maritime watchdog (the Maritime Authority or MA) has put out a warning about the dangers of sharks - "look, long sharp teeth, large mouth, strong bite. Stay away at all costs. You could be killed by these predators".
After putting out this warning, it stands idly by when a seaside resort (let's call it the Delmar Beach Sports Seaside or DBSS) lets in sharks into its swimming lagoon. They have made a huge investment by advertising this new attraction at its resort. Many holiday-makers visit the resort as a result of this promotion. Nobody notices that the sharks were promoted as an exotic dog-fish species. In a foot-note in the promotion brochure, there is mention of the dog-fish species which called by its proper scientic name, "Carcharodon carcharias". Its layman's name is the Great White Shark. However, no-one quite understood all the marine biology jargon. Everyone thought this was a safe holiday at home, far from fears of terrorism and air-crashes.
The DBSS resort tells the holiday-makers, "Don't worry, this is a unique resort attraction. You are perfectly safe as long as you stay within the lagoon. It's not like you are swimming in the open sea. Go right ahead and swim and you will have a good time". The holiday-makers, being rather trusting of this reputable resort, proceed to wade out into the lagoon. Soon, entire families were having a wonderful time, splashing merrily in the cool waters of the lagoon. Everyone thought this was a perfect holiday.
The inevitable happens - someone has a little accident and suffers a small cut. Unfortunately, the sharks detected the minute amount of blood and their predatory instincts kicked in. They begin to attack and gobble up the poor swimmers. The carnage is quite heart-breaking. Young and old are killed or are maimed and injured. The swimming lagoon is awash with blood and gore, and very few managed to crawl out of the lagoon untouched.
The resort's lifeguards are not much help - after all, this was not something they trained for. They knew about CPR and water rescues, but shark attacks were completely new to them. Ambulances were called, but for many of the victims, help came too late. In the aftermath of the disaster, the DBSS management was hard to reach for comments. They asked that all enquiries be sent to its PR department, and that all queries will be handled in due time.
Meanwhile, MA said that the families of victims or surviving victims should put in their claims for compensation to DBSS. It said that DBSS is the correct party to judge whether the claims are valid or not. It also reminds everyone that it has issued a warning about sharks. An MA official said that there is inherent risk in every activity even on holidays. And the more fun you have, the greater is the risk you run.
A prominent marine biologist, Mr TK Lynch set up a support centre to counsel and answer the questions by the bewildered families who have lost their loved ones. He helps organise support group meetings, and writes to the MA to seek answers and redress. At the time of writing, nothing has yet happened. Meanwhile, throughout the country, at many wakes and funerals, the grieving continues and many heart-rending questions are sent skywards. But no answers descend.
The maritime watchdog (the Maritime Authority or MA) has put out a warning about the dangers of sharks - "look, long sharp teeth, large mouth, strong bite. Stay away at all costs. You could be killed by these predators".
After putting out this warning, it stands idly by when a seaside resort (let's call it the Delmar Beach Sports Seaside or DBSS) lets in sharks into its swimming lagoon. They have made a huge investment by advertising this new attraction at its resort. Many holiday-makers visit the resort as a result of this promotion. Nobody notices that the sharks were promoted as an exotic dog-fish species. In a foot-note in the promotion brochure, there is mention of the dog-fish species which called by its proper scientic name, "Carcharodon carcharias". Its layman's name is the Great White Shark. However, no-one quite understood all the marine biology jargon. Everyone thought this was a safe holiday at home, far from fears of terrorism and air-crashes.
The DBSS resort tells the holiday-makers, "Don't worry, this is a unique resort attraction. You are perfectly safe as long as you stay within the lagoon. It's not like you are swimming in the open sea. Go right ahead and swim and you will have a good time". The holiday-makers, being rather trusting of this reputable resort, proceed to wade out into the lagoon. Soon, entire families were having a wonderful time, splashing merrily in the cool waters of the lagoon. Everyone thought this was a perfect holiday.
The inevitable happens - someone has a little accident and suffers a small cut. Unfortunately, the sharks detected the minute amount of blood and their predatory instincts kicked in. They begin to attack and gobble up the poor swimmers. The carnage is quite heart-breaking. Young and old are killed or are maimed and injured. The swimming lagoon is awash with blood and gore, and very few managed to crawl out of the lagoon untouched.
The resort's lifeguards are not much help - after all, this was not something they trained for. They knew about CPR and water rescues, but shark attacks were completely new to them. Ambulances were called, but for many of the victims, help came too late. In the aftermath of the disaster, the DBSS management was hard to reach for comments. They asked that all enquiries be sent to its PR department, and that all queries will be handled in due time.
Meanwhile, MA said that the families of victims or surviving victims should put in their claims for compensation to DBSS. It said that DBSS is the correct party to judge whether the claims are valid or not. It also reminds everyone that it has issued a warning about sharks. An MA official said that there is inherent risk in every activity even on holidays. And the more fun you have, the greater is the risk you run.
A prominent marine biologist, Mr TK Lynch set up a support centre to counsel and answer the questions by the bewildered families who have lost their loved ones. He helps organise support group meetings, and writes to the MA to seek answers and redress. At the time of writing, nothing has yet happened. Meanwhile, throughout the country, at many wakes and funerals, the grieving continues and many heart-rending questions are sent skywards. But no answers descend.
Fearful about speaking
Hi Mr. Tan,
I am sure, there are many who quietly hope that you would, when the time comes, volunteer yourself for election into Parliament.
Whilst some may wish that you avail yourself for the chair of the Presidency, however, I personally feel your entry into Parliament can contribute more to the betterment of the Singapore society. Time for a change in the way how our lives is governed.
In the meantime, dear Mr. Tan, I hope to see you and your fellow cohorts in Hong Lim Park as often as it possibly permit.
It is a shame to suggest that you tread carefully in your speeches, and hence I hope you do not take offence to this reminder which I am sure you are also fully aware of.
I wish you well, dear Mr. Tan
REPLY
Thank you. It is shameful that in Singapore, we cannot speak honestly and have to be fearful.
I am sure, there are many who quietly hope that you would, when the time comes, volunteer yourself for election into Parliament.
Whilst some may wish that you avail yourself for the chair of the Presidency, however, I personally feel your entry into Parliament can contribute more to the betterment of the Singapore society. Time for a change in the way how our lives is governed.
In the meantime, dear Mr. Tan, I hope to see you and your fellow cohorts in Hong Lim Park as often as it possibly permit.
It is a shame to suggest that you tread carefully in your speeches, and hence I hope you do not take offence to this reminder which I am sure you are also fully aware of.
I wish you well, dear Mr. Tan
REPLY
Thank you. It is shameful that in Singapore, we cannot speak honestly and have to be fearful.
MAS International Advisory Panel (IAP)
Mr Lim Hng Kiang, Minister for Trade & Industry and Deputy Chairman of MAS (Chairman of IAP)
Dr Josef Ackermann, Chairman of the Group Executive Committee, Deutsche Bank AG
Mr Jacques Aigrain, Chief Executive Officer, Swiss Re
Mr Claude Bebear, Chairman of the Supervisory Board, The AXA Group
Mr Lloyd C. Blankfein, Chairman & Chief Executive Officer, Goldman Sachs, Inc
Mr Michael Diekmann, Chairman of the Board of Management, Allianz AG
Mr James L. Dimon, Chairman & Chief Executive Officer, J.P. Morgan Chase & Co.
Mr David Fisher, Chairman, Capital International
Mr Rijkman Groenink, former Chairman, ABN AMRO Bank N.V.
Mr Kenneth D. Lewis, Chairman, Chief Executive Officer & President, Bank of America Corporation
Mr John Mack, Chairman of the Board and Chief Executive Officer, Morgan Stanley Dean Witter & Co.
Mr Shigemitsu Miki, Senior Advisor, The Bank of Tokyo-Mitsubishi UFJ, Ltd
Mr Vikram Pandit, Chief Executive Officer, Citigroup Inc
Mr Michel Pebereau, Chairman, BNP Paribas
Mr Marcel Rohner, Chief Executive Officer, UBS AG
Mr Ratan Tata, Chairman, Tata Son Ltd
Mr John A. Thain, Chairman, Chief Executive Officer, Merrill Lynch & Co., Inc
Dr Junichi Ujiie, Chairman, Nomura Holdings, Inc
Mr John Varley, Group Chief Executive, Barclays PLC
Dr Josef Ackermann, Chairman of the Group Executive Committee, Deutsche Bank AG
Mr Jacques Aigrain, Chief Executive Officer, Swiss Re
Mr Claude Bebear, Chairman of the Supervisory Board, The AXA Group
Mr Lloyd C. Blankfein, Chairman & Chief Executive Officer, Goldman Sachs, Inc
Mr Michael Diekmann, Chairman of the Board of Management, Allianz AG
Mr James L. Dimon, Chairman & Chief Executive Officer, J.P. Morgan Chase & Co.
Mr David Fisher, Chairman, Capital International
Mr Rijkman Groenink, former Chairman, ABN AMRO Bank N.V.
Mr Kenneth D. Lewis, Chairman, Chief Executive Officer & President, Bank of America Corporation
Mr John Mack, Chairman of the Board and Chief Executive Officer, Morgan Stanley Dean Witter & Co.
Mr Shigemitsu Miki, Senior Advisor, The Bank of Tokyo-Mitsubishi UFJ, Ltd
Mr Vikram Pandit, Chief Executive Officer, Citigroup Inc
Mr Michel Pebereau, Chairman, BNP Paribas
Mr Marcel Rohner, Chief Executive Officer, UBS AG
Mr Ratan Tata, Chairman, Tata Son Ltd
Mr John A. Thain, Chairman, Chief Executive Officer, Merrill Lynch & Co., Inc
Dr Junichi Ujiie, Chairman, Nomura Holdings, Inc
Mr John Varley, Group Chief Executive, Barclays PLC
Impact of an offer to settle
Dear Mr. Tan,
If there is a settlement, does it apply to everybody or only those who signed the Petition?
REPLY
If there is a proposal from the distributor, it will be offered to those who fit into a certain category (e.g. who have been misled into the investment). It is subject to acceptance by the offered party.
Some investors may not be offered the settlement, e.g. they were not misled, or may not accept the offer (e.g. it was too low).
The offer for a settlement will have no unrelated to the signing of the Petition. Any party offered can accept or rejected the offer, regardless of whether they sign the Petition.
So far, none of the financial institutions have responded to my suggestion for a mediation. So, this question is premature.
If there is a settlement, does it apply to everybody or only those who signed the Petition?
REPLY
If there is a proposal from the distributor, it will be offered to those who fit into a certain category (e.g. who have been misled into the investment). It is subject to acceptance by the offered party.
Some investors may not be offered the settlement, e.g. they were not misled, or may not accept the offer (e.g. it was too low).
The offer for a settlement will have no unrelated to the signing of the Petition. Any party offered can accept or rejected the offer, regardless of whether they sign the Petition.
So far, none of the financial institutions have responded to my suggestion for a mediation. So, this question is premature.
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