Investors of failed structured products to know outcome of complaints by mid-Jan

[Help1]

Investors of failed structured products to know outcome of complaints by mid-Jan

 

SINGAPORE : The Monetary Authority of Singapore (MAS) on Wednesday said investors who have bought failed structured products will know the outcome of their complaints by the middle of January.

 

Investors had alleged that distributors had mis-sold the products and misrepresented the risks.

 

Minibond investor Ismail Deen was told last week that his complaint is still being looked into. He is one of nearly 5,000 investors who have complained to 10 financial institutions (FIs).

 

Like Mr Ismail, most investors of DBS High Notes 5, Lehman Minibonds and the Jubilee Series notes will get some answers by mid-January. Final checks are being done on some complaints.

 

Shane Tregillis, deputy managing director, Market Conduct Group, MAS, said: "That is to take into account the recommendations of the independent persons and to make sure they have taken into account any investigation findings, and also to check for consistency."

 

MAS said 9-in-10 complainants have been interviewed.

 

FIs have also decided on 80 per cent of the cases, but have yet to inform investors. For clear-cut cases though, investors have already been told of the outcome.

 

The central bank has been working with financial institutions in the past 10 weeks.

 

Mr Tregillis said: "We have been visiting, checking ourselves just to ensure the process, looking at the teams... the FIs have put in place in recent weeks, some of them are up to 100 people."

 

MAS said the FIs will review the complaints in a non-legalistic manner and it will be based on principles of fairness. However, they are expected to take legal defence if the investors decide to take them to court.

 

The central bank also said investors should be prepared to bear responsibility for their investment decisions. - CNA/ms

 

 

 

 

what outcome, no case means no case liao...

 

compensate to those who do not understand the meaning of "investment"?

compensate to those who do not understand english at all? then u will see sudden surge of ppl claim dun understand english, all switch to their native language liao

compensate to those who "teh gong" and hope to receive some form of compensation???

[Rickster]

There is no way for banks to compensate. At most, they will apologize.

 

But this will however, change the way investments are being sold in the future.

 

There are many pple who bought investments blindly without going thru the all the T&C. This will serve as a wakeup call to investors.

[Help1]

it definitely change the way investment products sell in the future from FIs and also the awareness of the risks involve from the public...bo pian sometime such unfortunate thing to happen inorder to trigger a wake up call for everyone thus all parties suffer

 

 

look at the last line of the report "The central bank also said investors should be prepared to bear responsibility for their investment decisions"

Edited December 18, 2008 by Help1

[Jamjammer]

Read T&C no use lah, banks will always disclaim everything. I feel the most important is to know what the "real" investment. I was actually quite interested to buy then but going the documentation on their what "referenced" entities and what "credit events" I dont feel good about the whole thing.

 

The decision not to buy was this: what if one of the entities collapsed, how much is the loss? Somehow I didnt get a clear-cut answer. Too complicated, so no go for me. Also the measly extra few percent doesnt seem worthwhile.

 

Read this news seems like bad news is coming for those who are still waiting, sad man

[Rickster]

In fact, my mom was one of the victims of minibonds.

 

She knew she has to bear all the risks and when such things happen, her chances of getting anything back is close to 0%, but she still wrote in to MAS to blast the way these investments were sold to a layman on not letting the investor know the real risks involved.

 

Therefore, I think in the future, life will be alot tougher for financial advisors & bank RM when selling investments products.

 

I've a close friend who is a FA and he is complainiang about all the procedures his company is changing in order not to run afoul with MAS.

Edited December 18, 2008 by Rickster

[M1122]

MM already said on news that investors have no case. So MAS just repeat what he say. Case closed and time to move on.

[Stary]

I think this serve as a wake up call for MAS. Should have ban all structured products completely and just allow Unit trust, insurance and stocks.

[Jamjammer]

Sorry to hear that, sigh.

 

My mum-in-law was almost a victim. Those FA approached her to buy this products but thank goodness, she called me and I made the right call to stop her from buying. Else now no more food and soups at her place liao....

 

Seriously, every parties are responsible for this fiasco. The ones that approved the sale, including using name like what crap "minibonds", the banks that are greedy for the fees, the ever greedy sales mgmt structure/incentives and lastly, the investors themselves.

 

So it's not fair that investors should bear the full brunt of this failure. The sad part is peasants will always get sacificed first - this is the rule of times, sad but true!

[Help1]

MAS is to regulate but not to interfere business opportunities...i gues MAS LL but to take this sh!t up when ppl complain and government already on high alert on this issue

[Stary]

Yes, regulate, but that doesn't mean approving products that is not appropriate for the masses.

 

If the authorities can ban chewing gum, they can definitely ban structured products.

[Jamjammer]

Regulation have nothing to do with interferring with biz. There's a big difference between making money from good biz and bad biz. Disappointed to see that our cheng hu bank that supposedly should serve the pp are involved. Really, cant trust anyone these days[shakehead]

Have you see some of the posters, brochures, names used and ads on these products? They were misleading man

Edited December 18, 2008 by Jamjammer

[Help1]

hahahaha...chewing gum can bring how much revenue??? we know alcohol and smoking kill ppl why authorities dun ban them cos high revenue mah....when there is lots of revenue generate, why kill the product...is a cashcow boy anyway who cares whether smoking and drinking kill ppl, if i am the govt, got money flowing continously why bother....unless smokers and drinkers start to say govt or authorities never provide sufficient information to warn them the risks involve etc etc

Edited December 18, 2008 by Help1

[Help1]

sori hor....cheng hu bank, r u refering to POSB???? now boh liao hor, is local commercial bank DBS, which they have every rights to operate like any other private FIs in the world. I think it is the public who keeps thinking DBS is the ppls bank thus have the wrong impression.

 

public need to change the impression, attitude and realistic liao

[Newbie_driver]

hopefully after this incident, investors will learn to be more careful irregardless of the kind of investment they are interested in as it takes 2 hands to clap.

[Newbie_driver]

... agree with you. else next time, if any investment lose money pple will use this as a case and KPKB again. where got investment that is 100% safe and 100% sure earn money one.