Tan Kin Lian's Blog: Petition #3 - Fair and equal compensation to all buyers

Sunday, October 19, 2008

Petition #3 - Fair and equal compensation to all buyers

This Petiton is authored by Albert Tan (tan4tell@yahoo.com). It is addressed to Mrs. Lim Hwee Hua and ask her to get MAS to give fair and equal compensation to be given to all investors, regardless of age and language.

If you agree, please sign the Petition urgently, to be presented to Mrs. Lim for the Parliamentary debate this week.

http://www.petitiononline.com/FECTAB1/petition.html

10 comments:

symmetrix said...: The petiton is good. This would be just and fair to ALL investors regardless of language, age, qualifications, risk apetite, employment status, available savings etc. Just 2 suggestions.

Para 1 of the petition states ".....By the standard of professional investment managers, not more than 10% of a person's saving should be invested in high risk products."

The indication by MAS is that most of the investors invested less than $50k, with many investing $10k, $20k etc. For these investors, I think their investment will be less than 10% of their total savings. Would such a statement in the petition jeopardise the small investor? If so, it may be better to remove it.

Para 2 states "...banks have persuaded most investors to part with a large part, if not all, of their life savings..." It may be safer to replace the word "most" with "many".

These 2 amendments would make the petition generic to address ALL investors.

- Lingam; October 19, 2008 10:29 PM
Anonymous said...: Is Albert Tan one of the investor?; October 19, 2008 10:29 PM
Anonymous said...: Since there are 3 parties involved, namely MAS, FI, and investors, a fair compensation should be each party bear 1/3 of the loss.; October 19, 2008 11:18 PM
Anonymous said...: It is a bit off topic but For those who were not there. Here are some pictures

http://leechman.wordpress.com/; October 20, 2008 12:21 AM
Raymond T said...: Most people buying shares have an unrealised loss close to 80% to 90%of their portfolio. But these investors of structured products are gunning for 33.3?

In other words, shares players if liquidate get back 20% at best.

Structured product holders want to get back 66.6?; October 20, 2008 6:52 AM
Anonymous said...: I think besides saying the investment is not suitable to the class of investors, we should also mention that the investment does not matched the original purpose of the investor. For example, for those retirees or near retirees who intended to build up a regular income with low risk, what they are looking for is a bond instrument, not a note that is linked to CDOs and other complicated structure instruments.; October 20, 2008 7:47 AM
Anonymous said...: Dear Raymond,
When you buy share, you know very well that if the company bankrupt, your loss will be 100%. In this blog, what we are talking about is we are con into believing that if one of the company bankrupt, we will only lose 12.5%, but now the bank want to eat up all the capital.; October 20, 2008 9:47 AM
Anonymous said...: Raymond,
The issue in structured products is misrepresentation/misled.

Is the share buyer misrep/misled in any way?; October 20, 2008 12:06 PM
Anonymous said...: Method to resolve the problem:-

(1) All parties, the issuers, FIs, RMs etc who earned any income such as the commission from selling these products, should bear the responsibility. They should return revenue they received from this because they should not have sold these products at the first place.

(2) Four parties should shoulder the losses, the trustee (eg HSBC Trust) , MAS, FI, investors. Degree of sharing should be discussed.

(3) Be fair to all investors. Whether we are poor, rich, educated or uneducated, we are all low-risk investors. Compensation should be the same.; October 20, 2008 12:07 PM
Anonymous said...: I believe the key is whether there is misrepresentation. Our government and the ministers would sue anyone who "misrepresented" for compensation even if not a single cent was involve in the first place.

Therefore, why should any responsible party be let off the hook if they have misrepresented.

This case will show truly if the government or judicial system in singapore works if someone decides to pursue and sue the party involved.; October 20, 2008 3:30 PM