Dear Mr. Tan,
You are a bold person. Please tell me frankly. Is MAS at fault for approving the sale of the Minibonds? Is this why MAS is reluctant to take action now? Are they trying to hide their mistake?
I think that you should send this question to your Member of Parliament and ask your MP to bring this question up in Parliament.
The approach taken by MAS in the past was to require the risks to be stated in the prospectus and the advertisement. I was able to see the fine print in the advertisement that said, "In the event of a credit default, you could lose a substantial part or all of your investment". It is difficult for anyone, even an expert, to know what is the extent of this risk. This is why I had recommended against making such an investment.
Sadly, many retail investors relied on the advice of their financial institution representative to explain what this statement meant. The representative did not give them the right explanation and misled the investor into believing that the risk is very remote (when the real situation is quite different).
A better approach, which can only be done in the future, is to ban these types of risky products from being sold to the retail investors. It is difficult for a retail investor to know if a product is risky. This has to be the responsibility of the regulator in approving the product for sale. If the regulator is not able to make an assessment of the risk, how can they expect the retail investor to make this assessment?
The Hong Kong Monetary Authority also took a similar approach in the past and allowed the sale of the structured products. This is why so many investors in Hong Kong have been misled into investing in these products. But the HKMA is now quite pro-active in helping the investors to seek redress. They are now considering a ban on the sale of such products to retail investors in the future.
- ► 2013 (315)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1655)
10/05 - 10/12
- Distributor: UOB Kay Hian
- Social responsibility to Singaporeans
- Speaker's Corner - 11 Oct 2008
- File an affidavit to support your claim
- Rebuilding the Global Financial System
- High cost of life insurance at older ages
- Class action against Lehman Brothers in USA
- Is MAS at fault?
- Unhappy with bank's complaint handling process (3)...
- Hong Kong - selling of structured products
- MAS publishes timeline for Minibond resolution pro...
- Climate of fear and intimidation
- Risky to trade on leverage
- Feedback on complaint handling process
- Difficulty with travel insurance claim
- Lehman Bond Probe Widens
- ST Index approaching 1900
- Petition has been lodged
- How the market really works
- Hong kong: Curb on banks' investment sales aired
- Complaint to MAS against a financial institition
- SCMP - DBS offers full compensationto mini-bond ho...
- Fiduciary duty
- HKMA vs MAS
- Global Financial Crisis - subprime loans
- Get information from my blog
- Book on financial planning
- Unhappy with bank's complaint handling process (2)...
- Bank agree to buy back risky investments
- No personal investment in credit linked securities...
- Media interviews on Petition
- Call for investors to take the next step
- Unhappy with bank's complaint handling process
- Financial institution fined for mis-selling
- Oversight of the complaint handling process
- Misleading advertisements
- Hong Kong: Minibond investors demand full refund
- Restrict the issue of credit cards
- Petition to Singapore Government - 983 signatures
- HKMA investigates complaints of alleged mis-sellin...
- South China Morning Post: 2003 case sets precedent...
- New type of foreign talent
- Poor payout on Anticipated Endowment policy
- Is bond fund risky?
- Legal fees - action against distributor
- Credit default swaps - who benefits?
- Coordinated interest rate cuts
- Reduced bonus under Income policies
- Dividend under STI ETF
- Credit default swap
- Full particulars of investors of credit linked sec...
- Hong kong - minibond buyback proposal
- File a police report
- Securities Investors Association of Singapore (SIA...
- Consumer Association
- Collective Action against specific distributors
- Unable to give individual advice or attend to indi...
- Monetary Authority of Singapore - Consumer Complai...
- ST Index is still falling
- Lodge your complaint with the Distributor
- Write to Monetary Authority of Singapore
- Meet the Member of Parliament
- My blog passes 500,000 visitors on 6 Oct 2008
- Petition to Singapore Government - Credit Linked S...
- Expensive to battle in court
- Consumer banking sells the structured products
- Loss of retirement savings
- Speaker's Corner, Saturday 11 October, 5 - 7 pm
- Section 199 of the Securities and Futures Act
- Section 27 of the Financial Advisers Act
- Request for help from Relationship Managers
- Petition on Credit Linked Securities, Singapore
- Capital protected product
- Service to the people
- CNBC short video on Minibond
- Is it wise to cash out on the structured product n...
- A highly risky structured product
- Selling of life insurance through multi-level
- Engaging a lawyer
- Elderly get hit the most!
- ▼ 10/05 - 10/12 (80)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)