Tan Kin Lian's Blog: Sales Materials and Prospectus

Sunday, September 28, 2008

Sales Materials and Prospectus

I urge all investors of the credit linked securities to identify the sales materials, prospectus and other documents that you were given at the point of sale. You can also identify the documents that you were NOT GIVEN, such as the prospectus and other essential information.

This document will be helpful when you have to lodge a formal complaint or take legal action.

Please don't ask me what you have to do, if you do not have the document - because the answer is, "Do what you can".

7 comments:

Anonymous said...: The following are quotes from the Minibond series 5 & 6 sales brochures.

Redemption-100% of principal amount (unless a Credit Event occurs to any of the Referenced Entities or there is early redemption other than upon an exercise of the early redemption by the Issuer),

Early Redemption Option of the Issuer-Notes may be redeemed at 100% of principal amount plus accrued interest on or after 3 years from Issue Date and the option of the Issuer.

Credit Events-A default or similar event happening to any of the Referenced Entities, such events being "Bankruptcy""Failure to Pay" or "Restructuring" (detailed definitions are set out in the Pricing Statement)

Prospectus definition pages 5 to 10did not cover Credit Events definition.

So based upon the above, most investors would think that they are investing in the referenced entities. There are no Credit Events being declared on the 6 referenced entities yet the investment is wiped off!

Misrepresentation is a big issue!; September 28, 2008 10:03 AM
Anonymous said...: Dear Mr Tan,
I bought Minibond series3 from HL, I signed Wealth Management Planner, Collective Investment Scheme Recommendations form.

My Risk Profile: Moderately conservative.

I also signed the Wealth Management Planner, Data Taker form.

Financial Objectives: My choice is High on Capital preservative: maintaining capital without the need for growth or to keep pace with inflation. Any potential growth would be a bonus.

This is my investment objective, but the RM recommended Minibond series 3.

Can I prove that I was being misled?; September 28, 2008 11:31 AM
Anonymous said...: Brochures and prospectus are useful for the savvy ones but you still cannot dump them on the investor and assume they understand the technical jargons. It is not easy to break down the jargons into simpler language because they lose the impact and effectiveness. The advisers are very very important and the brochures and prospectus are not the SUBSTITUTEs for them. It is not fair.If they can , the products can be sold online.; September 28, 2008 1:20 PM
Anonymous said...: Dear Mr Tan

I also bought Minibond Sereis 3 from HL, signed the Wealth Management Planner, Wealth Mgt Recommendation and the Data Taker form.

Risk profile: CONSERVATIVE

Financial Objective: My choice is HIGH on CAPITAL PRESERVATIVE: maintaining capital without the need for growth or to keep pace with inflation. Any potential growth with bonus would be a bonus.

Investment Objective:
Asset accumulation.

Since my risk profile is CONSERVATIVE and HIGH on CAPITAL PRESERVATIVE, the Minibond Series 3which is a very risky product, should not have been recommended to me as I may LOSE ALL my CAPITAL invested. This is misrepresentation of the product and misleading.; September 28, 2008 1:44 PM
Anonymous said...: Mr. 1.44PM,
the recommendation was inappropriate
and conflict of interest.
Your concern was capital preservation
but the product could lose your capital.; September 28, 2008 5:12 PM
WY said...: Minibond IPO prospectus and pricing statement(from MAS’s Opera)
http://masnet.mas.gov.sg/opera/sdrprosp.nsf/beeb14c28bb1c29b48256b3d002f927b/72ffdca666fe65fd48257433002ae847?OpenDocument

Investors who have lost their prospectus can take a look at the website. Try to look at the Risk Factor mentioned and recall..; September 28, 2008 9:37 PM
WY said...: I think most (if not all) of the prospectus/pricing statements for CLNs can be found in MAS's Opera.
It is at the "debenture offers".

Now those related to Lehman Brothers have problems.
Investor may consider to read more carefully on risks of other CLNs.

http://masnet.mas.gov.sg/opera/sdrprosp.nsf/LeftFrame?OpenFrameset&LayerVal=D&Frame=RightPane&SRC=/opera/sdrprosp.nsf/vewPublicLatestDebuntures?OpenView; September 29, 2008 8:52 PM