Thursday, April 16, 2009
Survey - Sale and marketing of unlisted investment products
The protem committee of FISCA (Financial Services Consumer Association) intends to submit the following paper to MAS giving our views on its proposals regarding the sale and marketing of unlisted investment products (including life insurance and structured products).
Give your views to FISCA's proposals in this survey.
Wednesday, April 15, 2009
Opinion from Queen's Counsel
In December, I asked a lawyer to approach a Queen's Counsel for an opinion about the legality of the prospectus used for the credit linked notes.
The Queen's Counsel indicated an extremely high fee for the legal opinion. As this fee was many times more than the initial budget, I decided not to pursue this matter. I informed the group leaders about this decision.
Investors who wish to pursue the class action can contact the group leaders indicated in this blog. Please get an update from the group leader directly.
I have arranged with a lawyer to provide assistance to investors who wish to pursue the matter through FIDREC or the subordinate court on an individual basis. This is an alternative to the class action. Those who wish to make consider this option can send an e-mail to me at kinlian@gmail.com.
Tan Kin Lian
Thoughts For The Week: Tyranny
Contributed by Ho Chew Seng
"The modern conservative is engaged in one of man's oldest exercises in moral philosophy: that is the search for a superior moral justification for selfishness." : John Kenneth Galbraith
"Of all forms of tyranny the least attractive and the most vulgar is the tyranny of mere wealth, the tyranny of plutocracy" : John Pierpont Morgan
"The modern conservative is engaged in one of man's oldest exercises in moral philosophy: that is the search for a superior moral justification for selfishness." : John Kenneth Galbraith
"Of all forms of tyranny the least attractive and the most vulgar is the tyranny of mere wealth, the tyranny of plutocracy" : John Pierpont Morgan
Erosion of ethics and honesty
Previously, we can trust business to be ethical and honest. The standard of ethics has deteriorated much in recent years. Many oraganisations think about profits and do not hesitate to cheat their customers.
I received a cheque in payment of providing a service. I did not bank in the check and it expired after six months.
I sent an email to ask for a replacement cheque. I did not get any reply. I sent a hard copy letter by post. I did not get any reply. I did not get the replacement cheque. Another six months had passed.
I suspect that the accounts staff of this large and respected organisation probably felt that it was all right for the company to write back the forfeited amount as its profits. This is a very sad state of affairs.
Tan Kin Lian
The Standard:Yam yields on minibonds
The Hong Kong Monetary Authority has given way to legislators' demands to show them a censored part of a report investigating Lehman Brothers minibonds.
HKMA chief executive Joseph Yam Chi-kwong, who had previously refused to disclose the sealed findings citing the public interest, agreed on Monday night to present the findings to legislators for discussion, according to Raymond Ho Chung-tai.
Ho, who represents the engineering sector, expects lawmakers to discuss the matter on Friday at a closed-door meeting, with the next hearing taking place on Tuesday.
Yam, who testified at a Legco hearing for the first time yesterday, said the HKMA bears a strong responsibility to handle problems caused by the minibonds saga even though it issued warnings before the Lehman collapse.
In response to legislators such as Emily Lau Wai-hing, who accused Yam of ``falling asleep'' when handling complaints about the sale of minibonds, he said the HKMA is doing its best. But the search for justice would take time.
``Our heart goes to investors and we really want to help them,'' Yam said at the three-hour hearing.
``We will not be softhearted when we handle the complaints as they will affect our banking system. We are in a hurry to complete them.''
Almost 300 investors protested outside Legco yesterday, accusing Yam of turning a blind eye to questionable selling practices behind the derivatives.
The territory's de facto central bank aims to complete handling 70 percent of the more than 20,000 complaints it has received by March next year.
More than 6,000 cases have been settled or nearly settled, according to Yam.
From the end of 2007 to early 2008, eight banks adjusted ratings of credit linked products _ including minibonds _ to ``high-risk'' among 16 banks being investigated, Yam said.
In answer to a question by Ronny Tong Ka-wah, Yam suggested the term minibond may be misleading.
He had read minibond prospectuses, which referred to the derivatives as bonds.
But Yam reiterated that the Securities and Futures Commission is responsible for approving securities products and the HKMA has no right to give opinions when they are approved.
HKMA chief executive Joseph Yam Chi-kwong, who had previously refused to disclose the sealed findings citing the public interest, agreed on Monday night to present the findings to legislators for discussion, according to Raymond Ho Chung-tai.
Ho, who represents the engineering sector, expects lawmakers to discuss the matter on Friday at a closed-door meeting, with the next hearing taking place on Tuesday.
Yam, who testified at a Legco hearing for the first time yesterday, said the HKMA bears a strong responsibility to handle problems caused by the minibonds saga even though it issued warnings before the Lehman collapse.
In response to legislators such as Emily Lau Wai-hing, who accused Yam of ``falling asleep'' when handling complaints about the sale of minibonds, he said the HKMA is doing its best. But the search for justice would take time.
``Our heart goes to investors and we really want to help them,'' Yam said at the three-hour hearing.
``We will not be softhearted when we handle the complaints as they will affect our banking system. We are in a hurry to complete them.''
Almost 300 investors protested outside Legco yesterday, accusing Yam of turning a blind eye to questionable selling practices behind the derivatives.
The territory's de facto central bank aims to complete handling 70 percent of the more than 20,000 complaints it has received by March next year.
More than 6,000 cases have been settled or nearly settled, according to Yam.
From the end of 2007 to early 2008, eight banks adjusted ratings of credit linked products _ including minibonds _ to ``high-risk'' among 16 banks being investigated, Yam said.
In answer to a question by Ronny Tong Ka-wah, Yam suggested the term minibond may be misleading.
He had read minibond prospectuses, which referred to the derivatives as bonds.
But Yam reiterated that the Securities and Futures Commission is responsible for approving securities products and the HKMA has no right to give opinions when they are approved.
Subscribe to:
Posts (Atom)