When you invested in the credit linked securities (i.e. mini bond, high notes, pinnacle notes), did the distributor give you the prospectus and pricing statement?
Only a pricing statement. No mention of prospectus or what are the underlying securities. Phillip Securities allow people to apply online without even assessing investor risk profile.
No prospectus nor pricing statement was given to me; only the sales brochure which explicitly state that we will get back our capital unless there is a credit event in one of the reference entities. Lehman Brother as a arranger was not given highlighted to me.
Hi Mr Tan Looking through my documents now, I find that i was not given the Prospectus nor the Pricing Statement for Minibond Series 2.
I was given the Pricing Statement but not the Prospectus for my Minibond Series 5. But I notice that the bank officer ticked the box against Prospectus as given !!
This brings me to the sham of how the bank officers complete the documentation when selling their products. I notice that 1) they only complete the Investor's Profile after payment has been handed over. Shouldn't it be the other way round? 2) Often, they "help" to tick the multiple choice questions in the Investor Profile for me. My fault, I should be more firm and not let them rush me. 3) When I receive the copy of my Investor Profile 2 weeks later, I find I don't agree with some of the answers ticked. By then, its too late.
Sadly, I have yet to meet a bank officer who is professional and ethical. They have shown that they are only interested in pushing through a sale.
Thank you for all the work you are doing to help those of us who bought the Minibonds with our retirement money. God bless you!
In Hong Leong Finance case, the RM explained to me using only the brochure, then after you have signed, he packed your application form and the prospectus into a package to give to you. You have the prospectus only after you've signed.
For UOB Kay Hian, when you called the advertised hotline, they send the application form and prospecus to you and asked that you sign the form and attach your cheque. No explanation of the product at all. It's as simple as putting money in FD.
Which is worst - giving partial and withholding information; or not explaining anything at all? I would say both are failed system.
Same experience here. Bought from Maybank. Briefed my only using that little brochure, and RM only highlighted the most basic things like price and coupon rate. Only after I paid, then I was given the pricing statement and prospectus.
Same thing with OCBC Securities. I thought I was rushed through because I signed up a day before the closing date. The manager said she needed to complete the procedures fast so that she could cash in my cheque asap in time for the application. I was given the Pricing statement at the end of it, without the Prospectus. I was not given a copy of anything I signed or read, if any.
The pricing statement and prospectus are very thick and heavy documents and there are usually limited copies available in each branch of the bank. Some does not even have one. So the RM will only give a copy to you when you agree to invest. If they give it to every person who just enquire about the product, they will run out of the documents very fast and there be nothing for the geniune investors. This is why they will give it to you only after you sign the dotted line. And if they really run out of the documents, they will promise to send it to you later and ask you to sign the application form first, but that prospectus will be sent.
This appears like you were buying at the raodshow and you were misled to buy something like while stocks last products lest you missed it.This is a ploy used by financial consultants to misrepresent that the product was in great demand and if you don't act now you might miss it. This often used trickery works all the time. Many consumers fell for it. But I didn't when a ntuc agent used this ploy on me.It was an old living policy whole life which was to be replaced by limited pay type.She was trying to interest me by extolling everything about good the old plan but i was indifferent. Months later, she called trying to sell me the new plan this time and started to tell everything good about the new plan.I tried pulling a fast one on her and asked her about the old plan. I couldn't believe it she told me all the disadvantages about the old plan. I knew it would come from a salesperson. Can't trust their words and from that day i decided not to trust her and insurance salesmen. Don't trust salespeople.
Banks would be "off the hook" if they gave the prospectus (which is a very detailed and legal document) before the client signed. This is a sign that the client was warned about the risk with Lehman. It is now the fault of the client for not reading it before investing.
But in your situation... giving the prospectus after you've singed is a really bad practice. Not only for the investor but also the bank.
Yes, but I recall it's after I have decided to buy, and signed the Forms. The discussion was purely based on the marketing brochure.
ReplyDeleteNo prospectus was given to me for both the minibond and pinnacle notes that I purchased.
ReplyDeleteOnly a pricing statement. No mention of prospectus or what are the underlying securities. Phillip Securities allow people to apply online without even assessing investor risk profile.
ReplyDeleteNo prospectus nor pricing statement was given to me; only the sales brochure which explicitly state that we will get back our capital unless there is a credit event in one of the reference entities. Lehman Brother as a arranger was not given highlighted to me.
ReplyDeleteHi Mr Tan
ReplyDeleteLooking through my documents now, I find that i was not given the Prospectus nor the Pricing Statement for Minibond Series 2.
I was given the Pricing Statement but not the Prospectus for my Minibond Series 5. But I notice that the bank officer ticked the box against Prospectus as given !!
This brings me to the sham of how the bank officers complete the documentation when selling their products. I notice that
1) they only complete the Investor's Profile after payment has been handed over. Shouldn't it be the other way round?
2) Often, they "help" to tick the multiple choice questions in the Investor Profile for me. My fault, I should be more firm and not let them rush me.
3) When I receive the copy of my Investor Profile 2 weeks later, I find I don't agree with some of the answers ticked. By then, its too late.
Sadly, I have yet to meet a bank officer who is professional and ethical. They have shown that they are only interested in pushing through a sale.
Thank you for all the work you are doing to help those of us who bought the Minibonds with our retirement money. God bless you!
In Hong Leong Finance case, the RM explained to me using only the brochure, then after you have signed, he packed your application form and the prospectus into a package to give to you. You have the prospectus only after you've signed.
ReplyDeleteFor UOB Kay Hian, when you called the advertised hotline, they send the application form and prospecus to you and asked that you sign the form and attach your cheque. No explanation of the product at all. It's as simple as putting money in FD.
Which is worst - giving partial and withholding information; or not explaining anything at all?
I would say both are failed system.
Same experience here. Bought from Maybank. Briefed my only using that little brochure, and RM only highlighted the most basic things like price and coupon rate. Only after I paid, then I was given the pricing statement and prospectus.
ReplyDeleteSame thing with OCBC Securities. I thought I was rushed through because I signed up a day before the closing date. The manager said she needed to complete the procedures fast so that she could cash in my cheque asap in time for the application. I was given the Pricing statement at the end of it, without the Prospectus. I was not given a copy of anything I signed or read, if any.
ReplyDeleteThe pricing statement and prospectus are very thick and heavy documents and there are usually limited copies available in each branch of the bank. Some does not even have one. So the RM will only give a copy to you when you agree to invest. If they give it to every person who just enquire about the product, they will run out of the documents very fast and there be nothing for the geniune investors. This is why they will give it to you only after you sign the dotted line. And if they really run out of the documents, they will promise to send it to you later and ask you to sign the application form first, but that prospectus will be sent.
ReplyDeleteThis appears like you were buying at the raodshow and you were misled to buy something like while stocks last products lest you missed it.This is a ploy used by financial consultants to misrepresent that the product was in great demand and if you don't act now you might miss it.
ReplyDeleteThis often used trickery works all the time. Many consumers fell for it. But I didn't when a ntuc agent used this ploy on me.It was an old living policy whole life which was to be replaced by limited pay type.She was trying to interest me by extolling everything about good the old plan but i was indifferent. Months later, she called trying to sell me the new plan this time and started to tell everything good about the new plan.I tried pulling a fast one on her and asked her about the old plan. I couldn't believe it she told me all the disadvantages about the old plan. I knew it would come from a salesperson. Can't trust their words and from that day i decided not to trust her and insurance salesmen.
Don't trust salespeople.
I have no RM so I have no real experience.
ReplyDeleteBanks would be "off the hook" if they gave the prospectus (which is a very detailed and legal document) before the client signed. This is a sign that the client was warned about the risk with Lehman. It is now the fault of the client for not reading it before investing.
But in your situation... giving the prospectus after you've singed is a really bad practice. Not only for the investor but also the bank.