I researched the Financial Adviser Act and found section 27. It describes the responsibility of the financial adviser or its representative in giving proper advice to the consumer. The adviser is required by section 2 (a) to ensure that the recommendation (i.e. to invest in the credit linked securities) is appropriate to the consumer. I believe that the adviser has failed in this duty.
Recommendations by licensees
(1) No licensee shall make a recommendation with respect to any investment product to a person who may reasonably be expected to rely on the recommendation if the licensee does not have a reasonable basis for making the recommendation to the person.
(2) For the purposes of subsection (1), a licensee does not have a reasonable basis for making a recommendation to a person unless —
(a) he has, for the purposes of ascertaining that the recommendation is appropriate, having regard to the information possessed by him concerning the investment objectives, financial situation and particular needs of the person, given such consideration to, and conducted such investigation of, the subject-matter of the recommendation as is reasonable in all the circumstances; and
(b) the recommendation is based on the consideration and investigation referred to in paragraph
(3) Where —
(a) a licensee, in making a recommendation to a person, contravenes subsection (1);
(b) the person, in reliance on the recommendation, does a particular act, or refrains from doing a particular act;
(c) it is reasonable, having regard to the recommendation and all other relevant circumstances, for the person to do that act, or to refrain from doing that act, as the case may be, in reliance on the recommendation; and
(d) the person suffers loss or damage as a result of doing that act, or refraining from doing that act, as the case may be,
then, without prejudice to any other remedy available to that person, the licensee is liable to pay damages to that person in respect of that loss or damage.
(4) In this section, a reference to the making of a recommendation is a reference to the making of a recommendation expressly or by implication.
(5) This section shall not apply to any licensee or class of licensees in such circumstances or under such conditions as may be prescribed.
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09/21 - 09/28
- Prospectus for the Credit Linked Securities
- Regulation by the Dubai International Financial Ce...
- A view: Investors should bear bigger responsibilit...
- Avoid incurring a large debt
- Difficulty in Travel Insurance Claim
- Mis-representation in High Notes 2
- Fair Compensation
- Support for Petition
- Update (1) to investors of credit linked securitie...
- Sample letter of complaint
- Channel News Asia - Interview of investor
- Investing in stocks - online platform
- Credit Linked Securities - Q&A
- Overwhelmed by e-mails and questions
- Approach taken by Hong Kong Monetary Authority
- Lodge your complaint with your financial instituti...
- MAS statement on Protecting Policyholders
- Beware of ELN (Equity Link Notes)
- Experience in lodging a complaint with the bank
- Unable to pay premium till 70 - Revosave
- Business Ethics
- Preparing your statement or affidavit
- MAS statement on Structured Products
- Tell your Member of Parliament
- Special program on CNBC about Credit Linked Securi...
- Group Meeting of MiniBond Investors
- Lodge a complaint with the financial institution
- Investors of Credit Linked Securities - particular...
- Investors of Credit Linked Securities
- Hong Kong Monetary Authority
- Maintaining the cooperative spirit?
- Affidavit for investors of Credit Linked Securitie...
- Dubai, 24-27 Sep 2008
- Blog for Minibond investors
- Pinnacle Notes
- Proof of misleading advice
- Customer service on Motor Insurance
- OCBC Preference Shares
- Financial Adviser Act, Section 27
- Sad experience of a Minibond investor
- TV program on credit linked securities
- Investor in Minibond can seek redress
- Lack of transparency in terminal bonus
- A expert view about Structured Products
- Loss of hard earned money
- A flawed global financial system
- Book on Financial Planning
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