BBC radio documentary on structured products

Commemt posted in my blog

It is terrifying to hear from this bbc documentary that you have published on your site about reputable banks resorting to dirty tricks. I urge that this radio documentary to be heard by the public as it reveal many disturbing discovery.

http://www.bbc.co.uk/worldservice/documentaries/2008/10/081022_failure_or_fraud.shtml

Call to MAS - pass general guideline for compenstion

Comment posted in my blog

The only solution of this SAGA is to ask MAS pass the message down to ALL distributors to set general guideline for compensation.those are not happy can continue to take legal action later.Some buy from broker firms, the firms can argue that we send the brochure to you and you can decide not to buy. firms are only the distributer.We , singaporean always have this in mind, the FI dares to send such brochure to customers,the product must have been approved by MAS and safe. The product advertisement on newspaper is so BIG. It should be safe , espectially ,series by series continously, it should be safe.

Husband's objection

Dear Mr Tan,
It is really kind of you to spend so much time and energy to help the unfortunate people who bought Mini Bonds and High Notes. My relationship manager from ABM Ambro too approached me many times to buy the Lehman minibond.

Do not let nasty comments discourage you and just focus on the truth. Many of us are greedy and I escaped the noose only because of my husband's objection.

EO

REPLY
You are fortunate to have a husband who is knowledgeable. Many people were badly advised by the sales representative and did not have a family member to advised them on the risk.

Blog for High Note investors

Hi Mr Tan,

We have created our blog to coordinate our HN group's activities. The blog is at:
http://dbshns.blogspot.com/

We will be grateful if you can help us publicise the blog in your respective websites.

Complaint Form

Several investors have asked me for the complaint form. I will make them available at Speaker's Corner on Saturdays 5 to 7 pm, over the next few weeks.

You can download the form here:
http://www.tankinlian.com/forms/complaint_form.pdf

Please come to collect the form there and also to meet other investors in your group (based on distributor). You can get assistance from the other investors.

I urge all investors to seek assistance from the other investors in your group. Please do not approach me on your individual cases, as I am not able to handle so many people. Be considerate for my health.

If you are not sure about how to present your statement, you can see a lawyer to write a statutory declaration and pay a fee of $120. It may be worth spending.

It will be handled 'fairly'

XI'AN (China) - SINGAPOREANS aggrieved by their investment in Lehman Minibonds and DBS High Notes 5 will have their complaints handled 'fairly and properly', Prime Minister Lee Hsien Loong assured on Sunday in his first remarks on the issue. He said it was understandable that some investors had reacted emotionally as they lost their money in a sudden and unexpected manner, while others felt that the risks had not been adequately explained to them.

But ultimately, the banks do realise that it is in their interest to resolve the matter quickly and not let it drag on, he told reporters in the western Chinese city of Xi'an where he wrapped up his five-day visit to China.

'The banks have what they call reputational risk,' said PM Lee. 'In other words, if you do the right thing, your customers will remember you for a long time.
'If you do the wrong thing, customers and potential customers will remember you for a long time. The banks and financial institutions know this and have every interest in sorting this out expeditiously and fairly.'

In Singapore, about 10,000 retail investors have invested over $500 million into structured products linked to now-bankrupt Lehman Brothers. DBS Bank, Hong Leong Finance and Maybank said last week that they would look into complaints and fast-track vulnerable cases, prompting some investors to worry that they would be left out.

The Prime Minister repeatedly stressed the notion of fairness during his lengthy remarks on the issue yesterday, and added that instances of mis-selling would be investigated.

Mis-selling, at its simplest, means giving the wrong advice to potential investors. Beyond that, it can also mean a failure to help clients diversify their assets, non-disclosure of risks or not completing a proper fact-find to ensure the product being sold suits the customer.

Said PM Lee: 'Where there has been mis-selling, it has to be put right.

'Where there has been less than professional behaviour by the relationship managers, or where things don't measure up to the standards that the Monetary Authority of Singapore (MAS) expects when you promote the financial products, then the banks have to do the right thing.'

The MAS said on Friday that it would look into complaints of mis-selling, and added that an imminent review of the structured products industry would address such issues as better descriptions and labelling of products, as well as more professionally trained relationship managers.

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_295167.html

COMMENT
It is encouraging for the Prime Minister to emphasise on fairness. I hope that fairness has to be seen in the eyes of the aggrieved person. It will be difficult for the aggrieved person to feel that he (or she) has been fairly treated, unless the matter is settled through mutual agreement or by a fair, independent adjudication.

Some businesses hold the view that there are 4 million customers and if a few of them gets angry, there are other customers for them to tap. They also think that customers have short memories.

Interviews with Financial Institutions

Many investors have reported unsatisfactory experiences when they attend the interviews called by the financial institutions. I suggest that they write to the independent "well regarded" persons appointed by the financial institution.

As you do not have the address of these persons, you can write to their specific name (i.e Mr. Gerard Ee, Mr. Law Song Keng or Mr. Hwang Soo Jin, c/o the Monetary Authority of Singapore).

If you attend an interview, as a fellow investor to attend with you. In turn, you can accompany the interview with the fellow investors.

This is unsatisfactory, but it is MAS way. Let us follow it as best as we can.