Title: Minister Shanmugam said that investigation on City Harvest Church when “a complaint was received”. What about the thousands of complaints that were made against structured products?
I refer to the report made on 12 June 2010 on Today newspaper by Alicia Wong. It was reported that Minister Mr Shanmugam said "One shouldn't look at this (City Harvest Church investigation) from the perspective of churches or mega-churches. The way this has been approached is, a complaint was received - a complaint about how funds were used - and the Commissioner of Charities (COC) called in CAD (Commercial Affairs Department)."
It is laudable that government would start an investigation upon “a complaint was received”. The government should use the same resolve on the investigation of structured products.
The government should investigate the financial institutions that are responsible for the issuing and distribution of structured notes (such as Minibond, Pinnacle Notes, High Note etc).
There where thousands of written complaints, as compared to only “a complaint” in the case of City Harvest Church. There are many who are still not satisfied even when partial compensation is made. I hope the government would extend the same assertion to investigate the issuers and distributors of these structured products. In fact its effect is even more far reaching than City Harvest Church or Ri Ci Hospital’s issues. It affects the banking institution and the thrust of banking system at large.
Straits Times should provide coverage of the individuals who are behind these financial products.
In the case of Abbot Min Yi and Pastor Kong Hee, there was extensive coverage of their personal life and works prior to conclusion of the investigation. We have not seen any coverage of the individuals who are behind these structured products who brought anxiety and pain to many Singaporeans.
Cashew Nut
Saturday, June 12, 2010
Benefit Illustration
A benefit illustration has to be given for each life insurance policy that is recommended to a consumer. More than 100,000 life insurance policies are sold each year. The number of benefit illustrations given out must be at least two times of the number of policies sold. This makes the benefit illustration to be widely used.
Many people criticised the benefit illustration to be too complicated. As a result, consumers do not bother to read or understand them. It is the duty of the insurance adviser to explain the content of the benefit illustration, but most advisers do not do this duty. This is evidenced by the large number of insurance buyers who do not understand the key features of the policy and the key points in the benefit illustration.
There are only two important points that the insurance buyer should be aware:
a) distribution cost
b) effect of deduction
These two key figures determine whether the insurance buyer is paying too much for the insurance or getting too little back as investment return.
If consumers know what to look for, and how to interpret these figures, they can avoid paying thousands of dollars away unncessarily. These key points are explained in my book, Practical Guide on Financial Planning, which can be bought online here for only $12. The book also contained advice on how to identify and avoid bad financial products.
Many people criticised the benefit illustration to be too complicated. As a result, consumers do not bother to read or understand them. It is the duty of the insurance adviser to explain the content of the benefit illustration, but most advisers do not do this duty. This is evidenced by the large number of insurance buyers who do not understand the key features of the policy and the key points in the benefit illustration.
There are only two important points that the insurance buyer should be aware:
a) distribution cost
b) effect of deduction
These two key figures determine whether the insurance buyer is paying too much for the insurance or getting too little back as investment return.
If consumers know what to look for, and how to interpret these figures, they can avoid paying thousands of dollars away unncessarily. These key points are explained in my book, Practical Guide on Financial Planning, which can be bought online here for only $12. The book also contained advice on how to identify and avoid bad financial products.
Friday, June 11, 2010
Thursday, June 10, 2010
Land banking report in TODAY
Hi Mr. Tan,
http://www.todayonline.com/Singapore/EDC100611-0000267/Investors-call-for-regulation-of-land-banking
Quote:
Ex-NTUC Income chief executive Tan Kin Lian, who has blogged extensively about land banking, told MediaCorp that any product sold as an investment should be regulated - especially if it is advertised through the media to the general public.
Unquote
HL
http://www.todayonline.com/Singapore/EDC100611-0000267/Investors-call-for-regulation-of-land-banking
Quote:
Ex-NTUC Income chief executive Tan Kin Lian, who has blogged extensively about land banking, told MediaCorp that any product sold as an investment should be regulated - especially if it is advertised through the media to the general public.
Unquote
HL
Singapore Property Market
Land banking - Gathering at Hong Lim Park, 12 June 9.30 am
Countdown for tomorrow ....
The time of the gathering (for land banking investors) has been changed to 9.30 am on Saturday 12 June.
Agenda:
09.30am - 10.00am: Registration and Networking
10.00am - 10.15am: Start of presentation: Short Intro on the aims and purpose of our actions
10.15am - 11.00am: Talk by Guest Speaker, Mr Tan Kin Lian
11.00am - 11.15am: FAQs between Audience and Mr Tan
11.15am - 11.30am: Signing of Petition for Regulatory Action
11.30am - 12noon: Drinks
The time of the gathering (for land banking investors) has been changed to 9.30 am on Saturday 12 June.
Agenda:
09.30am - 10.00am: Registration and Networking
10.00am - 10.15am: Start of presentation: Short Intro on the aims and purpose of our actions
10.15am - 11.00am: Talk by Guest Speaker, Mr Tan Kin Lian
11.00am - 11.15am: FAQs between Audience and Mr Tan
11.15am - 11.30am: Signing of Petition for Regulatory Action
11.30am - 12noon: Drinks
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