Friday, October 03, 2008

Compensation to affected investors

Dear Mr. Tan,

According to the announcement, the MAS can only re-examine regulatory and supervisory roles and regulatory actions include "public reprimand" and "files".

Regulatory action could include fines and public reprimands but cannot include requiring FIs to pay compensation to affected investors.

This is too light a sentence for the FIs. Especially those who make the decisions to sell the products fraudulently and the lawyers who draft the prospectus into meaningless jargon!

Their FI will address their complaint quickly and fairly. Where a customer is still not satisfied, he can have the matter referred to FIDReC, which was specifically set up to handle such issues."

The FIDREC can only handle upto a claim of $50,000. So many of us put into far more than that! This "$50,000" limit must be removed! Also, we need the government to give us a fair legal judgement of this mis-selling saga!

Julie

REPLY
The Petition calls for MAS to make an investigation if there were any wrong doings done by the Financial Institution and to take appropriate action in Court on behalf of the investors. The Court can decide on how the investors are to be compensated.

In a similar case involving the "auction rate securities", the financial institutions decide to buy back the securities from the investors, rather than face the Court decision.
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1 comment:

Anonymous said...

And guess who is sitting on the board of FIDReC?

Elsie Foh (FIDReC Director)
Mrs Elsie Foh is a Managing Director and was the Chief Operating Officer for DBS' Singapore Consumer Banking Group. In her capacity as the COO, she oversaw the operations of the Bank's retail business. Mrs Foh now heads up the Bank's regional core banking program.

Mrs Foh is a veteran career Banker with more than 20 years' experience and extensive knowledge relating to various aspects of the financial service industry.

Within the DBSH Group, Mrs Foh served on the Board of DBS Asset Management Ltd. Externally, she was a director of Network for Electronic Transfers (S) Pte Ltd.

Mrs Foh is an alternate Council member of the Association of Banks in Singapore. She has been a member of the Consumer Mediation Unit (CMU) Panel of Mediators.

Bloody irony right? Is it a confict of interest?

October 03, 2008 11:43 PM

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