When I read the statements from various high-level ministers about investors who should be aware about the nature of the credit linked notes, I recall a statement: "None Are So Blind As Those Who Will Not See The Truth"
Monday, November 17, 2008
My blog and its target audience
I write this blog to educate the general public about financial planning, insurance and social issues in Singapore.
I advised people against investing in high cost financial products, such as structured products, certain types of life insurance products, time share and land banking.
The people who sell these products dislike my views. They attack me by posting anonymous and mischievous comments in my blog. I have to block these comments.
Some people also use my blog to attack NTUC Income, their agents and products. I also block these comments.
If you wish to submit comments that differ from my views, you can state them honestly and fairly, and use your real name. I will be happy to post them.
If you dislike the views posted in my blog, you should stop visiting it. My blog is not meant for people who make a living selling products that I discourage. You can create your own blog to argue the merits of your products and encourage people to visit your blog.
I advised people against investing in high cost financial products, such as structured products, certain types of life insurance products, time share and land banking.
The people who sell these products dislike my views. They attack me by posting anonymous and mischievous comments in my blog. I have to block these comments.
Some people also use my blog to attack NTUC Income, their agents and products. I also block these comments.
If you wish to submit comments that differ from my views, you can state them honestly and fairly, and use your real name. I will be happy to post them.
If you dislike the views posted in my blog, you should stop visiting it. My blog is not meant for people who make a living selling products that I discourage. You can create your own blog to argue the merits of your products and encourage people to visit your blog.
Match investors' needs
Nov 17, 2008
THE Monetary Authority of Singapore (MAS) may require financial services companies to sell products that better match investors' needs and include clearer risk labels linked to the investments, Finance Minister Tharman Shanmugaratnam said in Parliament on Monday. 'If an investor has been sold a product that's clearly unsuitable, if there are clear-cut cases of a mismatch, then the financial institution will ensure the investor gets proper restitution,' he said. 'That's the way we ensure there's trust in the system.'
Mr Tharman was replying to questions on the MAS probe into complaints by retail investors who said they were misled into buying structured products linked to the now-bankrupt Lehman Brothers Holdings.
Individual investors in Hong Kong, Singapore, and Taiwan have demanded refunds from banks selling them structured notes linked to Lehman.
DBS Group Holdings, Singapore's biggest bank which said late Oct most of the securities are now worthless, has estimated compensation to investors in cases where the bank didn't meet the 'standards' it upheld could amount to as much as $80 million.
Lehman's bankruptcy on Sept 15 sparked protests by investors in Hong Kong and Singapore seeking compensation for the products sold by DBS and other financial services companies.
'What's far more useful is to ensure good disclosure: simple, clear, good disclosure,' said Mr Tharman, adding that the monetary authority will study 'all' investor complaints.
He also said the note buyers should bear the responsibility of the investment outcome if there's no mis-selling by the banks, though he said his 'sympathies' lie with the investors, reported Bloomberg news.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_303359.html
THE Monetary Authority of Singapore (MAS) may require financial services companies to sell products that better match investors' needs and include clearer risk labels linked to the investments, Finance Minister Tharman Shanmugaratnam said in Parliament on Monday. 'If an investor has been sold a product that's clearly unsuitable, if there are clear-cut cases of a mismatch, then the financial institution will ensure the investor gets proper restitution,' he said. 'That's the way we ensure there's trust in the system.'
Mr Tharman was replying to questions on the MAS probe into complaints by retail investors who said they were misled into buying structured products linked to the now-bankrupt Lehman Brothers Holdings.
Individual investors in Hong Kong, Singapore, and Taiwan have demanded refunds from banks selling them structured notes linked to Lehman.
DBS Group Holdings, Singapore's biggest bank which said late Oct most of the securities are now worthless, has estimated compensation to investors in cases where the bank didn't meet the 'standards' it upheld could amount to as much as $80 million.
Lehman's bankruptcy on Sept 15 sparked protests by investors in Hong Kong and Singapore seeking compensation for the products sold by DBS and other financial services companies.
'What's far more useful is to ensure good disclosure: simple, clear, good disclosure,' said Mr Tharman, adding that the monetary authority will study 'all' investor complaints.
He also said the note buyers should bear the responsibility of the investment outcome if there's no mis-selling by the banks, though he said his 'sympathies' lie with the investors, reported Bloomberg news.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_303359.html
Sunday, November 16, 2008
Islamic investment products
Dear Mr. Tan Kin Lian,
I am an avid reader of your blog and must thank you very much for all the help and info you provided. Unfortunately I invested in Minibond before getting to know about your blog.
Though not urgent, perhaps you could write something about Islamic Investment products in your blog. I somehow feel that the current fiasco involving Minibond, Jubilee, Pinnacle, High Notes 5 products etc WOULD NOT have occurred had these products been structured according to Islamic investment guidelines.
From the little I know about Islamic investments, they are governed by certain principles viz:-
> Full transparency in the product structure. Product should not knowingly hide bad points and boast about the good points.
> There must be no intent to deceive investors, nor sell knowingly worthless products.
> Product should not involve highly risky companies whose values may swing very high or very low.
> Product should not be speculative in nature, but rather based on solid long-term fundamentals.
> Investment should not be linked to immoral activities eg gambling, drug trafficking, prostitution etc.
> “Interest” should not be paid to investors, but modest “dividends” may be distributed to investors based on product profitability.
> Above all, the investment product must comply with Islamic religious scriptures.
I feel such products are what we need in this age of uncertainty. They will be very reassuring for the bulk of investors who are mainly low-risk type. Certain Middle East countries are moving fast in this direction, including targeting women investors who are traditionally risk-averse and are now coming out of the closet.
In the book that you are planning to write, pls dedicate several detailed chapters on Islamic Investment products. The world is full of western-style investment gurus, but short on Islamic Investment advisers.
I don’t see much of Islamic investment opportunities for the retail sector in Singapore. There are some, but are meant more for institutional investors or having a high entry level. Any pointers on this pls? Thank you very much for your continued efforts to educate investors.
VS
REPLY
I am not knowledgeable on Islamic principles. But, I must say that I like all of the principles that have been described above (except the "above all" principle, which is relevant only to the Muslims).
I am an avid reader of your blog and must thank you very much for all the help and info you provided. Unfortunately I invested in Minibond before getting to know about your blog.
Though not urgent, perhaps you could write something about Islamic Investment products in your blog. I somehow feel that the current fiasco involving Minibond, Jubilee, Pinnacle, High Notes 5 products etc WOULD NOT have occurred had these products been structured according to Islamic investment guidelines.
From the little I know about Islamic investments, they are governed by certain principles viz:-
> Full transparency in the product structure. Product should not knowingly hide bad points and boast about the good points.
> There must be no intent to deceive investors, nor sell knowingly worthless products.
> Product should not involve highly risky companies whose values may swing very high or very low.
> Product should not be speculative in nature, but rather based on solid long-term fundamentals.
> Investment should not be linked to immoral activities eg gambling, drug trafficking, prostitution etc.
> “Interest” should not be paid to investors, but modest “dividends” may be distributed to investors based on product profitability.
> Above all, the investment product must comply with Islamic religious scriptures.
I feel such products are what we need in this age of uncertainty. They will be very reassuring for the bulk of investors who are mainly low-risk type. Certain Middle East countries are moving fast in this direction, including targeting women investors who are traditionally risk-averse and are now coming out of the closet.
In the book that you are planning to write, pls dedicate several detailed chapters on Islamic Investment products. The world is full of western-style investment gurus, but short on Islamic Investment advisers.
I don’t see much of Islamic investment opportunities for the retail sector in Singapore. There are some, but are meant more for institutional investors or having a high entry level. Any pointers on this pls? Thank you very much for your continued efforts to educate investors.
VS
REPLY
I am not knowledgeable on Islamic principles. But, I must say that I like all of the principles that have been described above (except the "above all" principle, which is relevant only to the Muslims).
Remembering Mohideen Gany
Dear Mr Tan,
On behalf of my family, I wish to thank you for your kind concern, visits and support during my father's last few moments.
I know how much my father must have been comforted by your visit and presenceand had valued & treasured those moments when you visted him at the hospital and at home.
He had held NTUC INCOME very dear to his life. I know that for sure as my siblings and I grew up in the midst of his untiring effort, commitment and dedication to the progress and development of NTUC INCOME.
He had been a model and an inspiration to me and we sorely miss him. We are proud of his achievements as the First President of NTUC Summit Club President and for being one of the leading organisers for several years in the 1970's and 80's.
Thanks for remembering him in your blog.
With deep appreciation and thanks
Naseer Ghani
(His Eldest Son)
On behalf of my family, I wish to thank you for your kind concern, visits and support during my father's last few moments.
I know how much my father must have been comforted by your visit and presenceand had valued & treasured those moments when you visted him at the hospital and at home.
He had held NTUC INCOME very dear to his life. I know that for sure as my siblings and I grew up in the midst of his untiring effort, commitment and dedication to the progress and development of NTUC INCOME.
He had been a model and an inspiration to me and we sorely miss him. We are proud of his achievements as the First President of NTUC Summit Club President and for being one of the leading organisers for several years in the 1970's and 80's.
Thanks for remembering him in your blog.
With deep appreciation and thanks
Naseer Ghani
(His Eldest Son)
Interview of investors on Blogs
The Online Citizen and Wayang Party wish to interview investors and upload the interview (on video) into their blogs. This will help to bring the message to the wider public about how the ordinary people have been misled into investing in these toxic products.
If you are willing to share your experience, as a lesson for other people to be careful in the future, please come forward to be interviewed.
You can send an email to kinlian@gmail.com
If you are willing to share your experience, as a lesson for other people to be careful in the future, please come forward to be interviewed.
You can send an email to kinlian@gmail.com
Publish a book on Credit Linked Notes
I wish to collect materials to publish a book to outline the experience of investors of the credit linked notes (i.e. minibonds, pinnacle notes, high notes, jubilee notes, etc).
If you wish to share your personal experience, please write your story (800 to 1200 words) to explain the following:
1. How did you get to invest in these notes
2. What were your told about the product
3. How much did you invest
4. What was your past experience in investing your money?
5. What was your reaction when you learn about the true nature of these credit linked notes?
6. How does the financial loss impact you?
7. What lesson do you wish to share with the future generation?
Please use your real name, contact number, name of product and financial institution. The editor will use another name (to hide your identity) and get your agreement, before your story is published.
Send your story to kinlian1@gmail.com
If you wish to share your personal experience, please write your story (800 to 1200 words) to explain the following:
1. How did you get to invest in these notes
2. What were your told about the product
3. How much did you invest
4. What was your past experience in investing your money?
5. What was your reaction when you learn about the true nature of these credit linked notes?
6. How does the financial loss impact you?
7. What lesson do you wish to share with the future generation?
Please use your real name, contact number, name of product and financial institution. The editor will use another name (to hide your identity) and get your agreement, before your story is published.
Send your story to kinlian1@gmail.com
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