Tan Kin Lian's Blog: Action to be taken on CLS

Sunday, September 28, 2008

Action to be taken on CLS

My team met this morning and decided on the following:

1. To submit a petition to the Singapore Government by 12 October
2. To hold a meeting of investors at the Speakers Corner on 11 October
3. To encourage investors to contact other investors in their list of 50 names
4. To identify investors who are willing to volunteer in this effort
5. To collect evidence of negligent or dishonest acts by the financial institutions
6. To identify lawyers who are willing to act on behalf of the investors for a fee.

If you have any suggestions, please send them to me at kinlian@gmail.com or post in this blog.

7 comments:

Anonymous said...: Propose to the Indep Committee to look into the adequacy of disclosure in the marketing brochures of the FI on each product. Since most of the time, the RM discussed with potential clients based on marketing brochure, there must be some min. standard of disclosure expected. E.g. had the brochures highlighted that the "underlying securities" do not consist of bonds in the RE, investors would have been alerted and probe further on what the "underlying securities" are.; September 28, 2008 1:04 PM
Anonymous said...: Also tell MAS that the way to recommend financial and insurance products MUST BE CHANGED to safeguard the consumers' interest.
Mis-selling and commission is the root of these current problems.
The advisers must be held responsible unless they comply with the guidelines laid out in section 27 of the FAA.
For errant advisers MAS must mete out punishment. No point talk only but no action.
Since 2001 a lot of notices and directives by MAS have gone into the FIs's incinerator or trashed.
They are useless, toothless and formulated for its own sake. Please license everyone and keep a register of them for consumers to refer and check.

A Concerned Adviser; September 28, 2008 1:38 PM
Anonymous said...: Note that Oct 12 exceeds the 15 day period of Minibond 5 and 6 current non payment of interest. HSBC may liquidate any time after Oct 8 according to their FAQ. Will Oct 12 be too late?; September 28, 2008 2:27 PM
Anonymous said...: I agree. Earlier I emailed Mr Tan to suggest an earlier date of the meeting because of the 15-day timeframe of the Minibond non-payment.; September 28, 2008 7:52 PM
WY said...: Thx Mr. Tan for your efforts to educate and to help ELN investors..

Found from MAS, “Singapore Corporate debt market review 2007”.
http://www.mas.gov.sg/resource/eco_research/surveys/Debt07.pdf

Equity Linked Notes issuance (SGD denominated): 3.7B in 2007, is 28% of SGD denominated structured debt.

Equity Linked Notes issuance (non-SGD denominated): 2.6B in 2007, is 15% of non-SGD denominated structured debt.

Seems like very big amount of ELN and even bigger amount of structured debt are already issued in Singapore.

Other structured debts are:
CDO, credit linked notes, currency linked notes, callable notes, asset securitised notes, convertibles etc..

I just wonder:
Is there a list of such structured debt already sold in Singapore ?
If ELNs related to Lehman Brothers risky and have problems, how about other ELNs ?
How about other structured debts ? Are swaps used & are the counterparties risky ?

I think the scope is bigger, not only limited to Lehman Brother’s CLNs.; September 28, 2008 9:31 PM
The Hong Lim Gardener said...: Hi Mr Tan,

I have added your event to my blog http://letsgotospeakerscorner.blogspot.com/

I hope you dont mind. Its part of my new initiative to help spread awareness of events at Speakers' Corner.

Hope your event is a success.

Cheers,
The Hong Lim Gardener; September 29, 2008 12:58 PM
Anonymous said...: Is 10 Oct for meeting too late? Series 5 already default and 15 days period end on 8 Oct.; September 29, 2008 3:26 PM