Tan Kin Lian's Blog: Experience of investor (3)

Monday, September 29, 2008

Experience of investor (3)

Dear all

I would like to share with you all what I have done so far on this issue:

I have written an email to ABN AMRO (now known as RBS) last Thursday to file my complaint, attaching the email from my RM to back up my claims for misrepresentation. There were quite a few misleading facts in his email. I also cc the email I wrote to ABN to FIDReC (Financial Industry Dispute Resolution Centre), email: info@Fidrec.com.sg.

Almost immediately, RBS replied that they will take some time to reply me while the officer at FIDReC also replied to my email, advising me to hear from the bank first before filing my case with FIDReC. Since my amount is $100,000 (more than the $50,000 limit that FIDReC is allowed to adjudicate), they will refer my dispute to Adjudication only where the Financial Institute has agreed to submit to adjudication for the higher claim amount and/or if I agree to limit my claim to the sums stated.

Please note that I did not state any monetary claims in my email to RBS. I want to hear the response from the bank on their proposed actions first, if any, before deciding what to do next.

You may want to file a complaint in writing to your bank quickly and cc info@Fidrec.com.sg since MAS had given instructions for banks and FIDReC to attend to complaints quickly and effectively. If there is any documentary evidence (like emails from your RM on the selling points of the product), these should be attached to your email too. Otherwise, just state the facts communicated to you by the RM. Even though FIDReC advised to write to bank first, it is still good to cc FIDReC in your email to the bank so that FIDReC has a feel on the number of complaints on the issue.

The following question pertains to minibond holders only: If the issuer (Minibond Limited) is able to find another swap counterparty to replace Lehmen Brothers Special Financing (LBSF) to take over all the swap agreements or if LBSF continue its obligations (possible since it is taken over by Barclays) so that minibonds do not default, are you still willing to hold the bonds till maturity or do you want out?

With Warm Regards
KK

6 comments:

Anonymous said...: kk,
I think this is one of the avenues we can take. Though I have had a teleconference with DBS about my complaints on High Notes, and also emails further issues to them, I have yet to hear from them as to what they are going to deal with my complaints. I believe they will take a long time to sort things out as more complaints are pouring in. Meanwhile, I think it may be a good idea to also email our complaints to FIDREC.
I urge all investors of Minibond and High Notes and other similar products to do so. This way, strength of the "small" investors can be felt. Let's do it!!!!; September 29, 2008 1:56 PM
Anonymous said...: Hi I am a DBS High Notes 5 holder. I forwarded my complaint email with DBS to FIDRec and the officer in charge has advised me to give DBS 4 weeks to reply before filing a complaint with FIDReC. I just wish to share with all investors in the same boat.; September 29, 2008 8:10 PM
Anonymous said...: Hi,

I think it'd be more effective if you cc MAS &/or PM Lee in your complaints mail. How can a world class regional bank takes 4 weeks to reply to such urgent matter?

Bee; September 29, 2008 11:22 PM
Anonymous said...: i am also bought Minibond series 2from Maybank. Your last para is particularly encouraging. Holding the bonds till maturity and/or wanting out later would be a good option.

I intend to email my complaint letter to Maybank/CEO, FIDReC, and MAS(Chairman). Do you have their email addresses.; September 30, 2008 12:10 AM
Anonymous said...: Sorry, I don't have the email address for the MAS (Chairman).

For Maybank email address, you need to go their website to check or you can call their contact centre for the info. They should be able to help you.

But do cc your email to FIDReC (info@Fidrec.com.sg) since FIDReC has been directed by MAS to look into this as well.

Regards.; September 30, 2008 11:59 AM
Anonymous said...: MAS chairman email is goh_chok_tong@pmo.gov.sg

FIDRec: charislee@fidrec.com.sg; October 01, 2008 10:29 PM