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Some people have been warned by the police against protesting outside DBS’s Shenton Way headquarters. For those who wish to take effective action, I urge that you first master your own emotions before fighting back. How would breaking the law help you? If even a small group of investors were arrested, it would terrorize the rest into sullen submission. Any attempts at trying to build a case or even to win public opinion would collapse. Do not allow yourself to be used by people with other motivations. There are groups that wish to expand their anarchical ranks and would happily urge you to break the law, but I ask that you stay within the law.
Even though the contracts that have been signed appear to be ironclad, a case of misrepresentation can still be made if it can show that the employees of the financial institutions deployed deceptive sales tactics. Misrepresentation is a criminal act and the investigation and legal prosecution of it would be undertaken by the state via the Commercial Affairs Department and Attorney General. It is not a civil representative lawsuit hence there are no legal liabilities which you need to pay. The penalty for misrepresentation is up to seven years jail.
But in order to motivate an investigation, it is necessary to first make a case that misrepresentation has occurred. To do so would require a concerted effort on the part of investors in gathering evidence that can be used to persuade the authorities and the public. The chances of success maybe slim, but if investors were to throw themselves against the rocks in the name of justice, then the chances of success would be zero. Do not do what many stupid and selfish politicians in Singapore have done and seek self destruction when an intelligent and courageous drive to uncover the truth is needed. More than ever, you need to endure and stand tall.
http://forum.channelnewsasia.com/viewtopic.php?p=2308570#2308570
Anybody remebered or can find an introduction articles in Lian He Zaobao around July or August 2006 for miniBonds. That is the first time bank start to promote these products. and engaged journalist to help them introduce these products as small scale bonds.
ReplyDeleteI clearly remembered the journalist said, it was small scale bonds for individual investors. As an experienced bond investor, I know the minium amount for some local bank issued bond need at least $250K. So I trust what the journalist said. I was not only mislead by adviertisment but also by news.
Was the journalist also misleaded by banks? Is it the best proof for mispresentation.
Finally, we should focus on mipresetation by banks but not by sales staff. If the sales guy is from street, will will belive what he say? Whatever message given to us are from the bank but not individual sale staff. Put their sales staffs in jail can not help us at all and not necessary.
Product selling or pushing revolves around misrepresentation to get a quick kill or sale.This is unethical.
ReplyDeleteThis practice is very common in insurance industry and in the banks.
The insurance agents push products because that is the only skill they have or they want to achieve mdrt fast.The RMs push products to meet quotas and earn quick commission.
MAS must stop this practice and make compulsory to use the need based approach to consumers' needs otherwise section 27 of the FAA will become a white elephant and before more people are hurt financially.
Product selling and pushing is the cause of this whole problem.
Misrepresentation is definitely there. Check the fact finding form you signed.You will find the evidences in the form to prove misrepresentation and miss-selling.
ReplyDeleteI know the RMs fabricated the forms AFTER the sale. Product advice is the usual option. This is even better for you.Product advice implies you came to buy on your own accord which is NOT TRUE.You think the Ah Peks and aunties went to the banks and asked for the structured products? They were accosted and waylaid by the RMs.The RMs are no different from the insurance agents.Both employ same tactics.
You can ask someone who subscribes to Newslink (SPH archives) to print you a copy. Try a Chinese teacher as some schools do have this subscription.
ReplyDeleteDBS Divide-And-Conquer strategy has now been complemented by Police Scaremongering tactics. I don´t see any point in protesting in the form of sit-in. I am just a messenger boy for people who to sit-in.
ReplyDeleteIf one should have a problem with DBS, just transfer all of one´s funds from DBS to another local bank. It is extremely stupid to continue to keep money in the very same bank that had cheated your, your friends or your family.
You may even get higher interest rate. For example, Maybank charges 0.5% interest more than DBS for current accounts.
The Wednesday sit-in is illegal, according to the police advisory reported by CNA below.
ReplyDelete“Police urge public to air grievances in lawful manner
By Margaret Perry, Channel NewsAsia | Posted: 14 October 2008 0118 hrs
SINGAPORE: Singapore police have advised the public to air their grievances in a lawful manner such as at Speakers’ Corner or to apply for an assembly permit if they want to use an indoor venue.
In a statement, police reminded the public that a demonstration in a public place without prior approval from the authorities may be deemed to be an illegal assembly.
The police advisory was in response to media queries following a DBS statement on Monday about its High Notes 5 and Constellation Series restructured products.
Over the weekend, hundreds turned up at the Speakers’ Corner at Hong Lim Park to voice their concerns over the current financial turmoil. - CNA/d”
I have been informed a few series minibonds were confirm default and they are going to unwind it. If the bank or HSBC unwind it, does that mean we will no chance to get back our money. They will force to sell all the asset under that CDO basket at a very very bad price and return back us nothing. Can MAS ask the bank hold the position until a clear aggreement out.
ReplyDeleteAre the investors given any freebie? I remember those banks like to offer free gifts to attract investors to buy their products. Did the RMs offer any rebate. (PS: rebate is illegal and violated the FAA regulations) Sometimes, RMs under the table offer vouchers as rebate to encourage investors to invest more into the product. If that that case, definitely there is a case to fight for misrepresentation. Hope this information helps.
ReplyDeleteI am not sure if misrepresentation is criminal?
ReplyDeleteMy understanding of Business Law 101 is that negligent misrepresentation is a tortious act that is actionable in civil courts?
Would any qualified professional in law (i.e. lawyer) be able to answer if misrepresentation is criminal when I believe it is not?
Misrepresentation is illegal under Section 27 of the Financial Advisors Act
ReplyDeleteRecommendations by licensees
27. —(1) No licensee shall make a recommendation with respect to any investment product to a person who may reasonably be expected to rely on the recommendation if the licensee does not have a reasonable basis for making the recommendation to the person.
(2) For the purposes of subsection (1), a licensee does not have a reasonable basis for making a recommendation to a person unless —
(a) he has, for the purposes of ascertaining that the recommendation is appropriate, having regard to the information possessed by him concerning the investment objectives, financial situation and particular needs of the person, given such consideration to, and conducted such investigation of, the subject-matter of the recommendation as is reasonable in all the circumstances; and
(b) the recommendation is based on the consideration and investigation referred to in paragraph (a).
(3) Where —
(a) a licensee, in making a recommendation to a person, contravenes subsection (1);
(b) the person, in reliance on the recommendation, does a particular act, or refrains from doing a particular act;
(c) it is reasonable, having regard to the recommendation and all other relevant circumstances, for the person to do that act, or to refrain from doing that act, as the case may be, in reliance on the recommendation; and
(d) the person suffers loss or damage as a result of doing that act, or refraining from doing that act, as the case may be,
then, without prejudice to any other remedy available to that person, the licensee is liable to pay damages to that person in respect of that loss or damage.
(4) In this section, a reference to the making of a recommendation is a reference to the making of a recommendation expressly or by implication.
(5) This section shall not apply to any licensee or class of licensees in such circumstances or under such conditions as may be prescribed
can someone pls tell me what section27 of FAA is all about?when I bought my minibond, my RM didn't mention this to me at all.Tks
ReplyDeleteLooks like this a nationwide issue. We should petition to the Prime Minister for help. The Prime Minister is accoutable to its citizens.
ReplyDeleteJust look at US, Britain, China etc, whenever there is a nationwide issue, the President or the Prime Minister will take the lead to redress the issue. Where is our dear Prime Minister? Did he has a kind heart for his citizens.
Misrepresent to cheat. If that is the intention of misrepresentation, it is a criminal act.
ReplyDeleteWhere is the "Customer Service" in the banking sector?
ReplyDeleteRather than sending "official" letters stating this and that,
or talking through the media or keeping a deafening silence.
How about writing to DBS or Gerald Ee and suggest the following:
Ask them to send a letter to all High Notes 5 investor to arrange for a Q&A session.
I am sure they have the "Full" list(Educated, non-educated, IT Savy, Chinese Papers only.)
Rather that the customers have to gather here and there, hunt down all investors and write names on small piece of papaers.
DBS can arrange all investors to attend in a nice big hall.
Now that High Notes 5 has failed, the minimun DBS can do is to ease the pain and clear any doubt.
They can prepare all the relevants documentations before hand.
Invite Gerald Ee and all their lawyers/ relationship managers/ product guru to standby to answer any queries.
Take the opportunity to explain why the High Notes has failed.
Explain the whole process of unwinding and shows some numbers.
Answer any doubt that investor might have.
Address any grievences and clear any doubt.
Rectify any mis-conception that people might have against DBS and do some damage control to their reputation.
Explore the possible route of complain handling, processes and timeline.
I am sure all the investors are full of question marks as to why their money is gone just like that.
To the bank, there are so many advantages to hold such an event.
It would cost less than the annual AGM.
This is the minimum that the bank can do to show that they do care about their customers.
Put some personal touch into Personal Banking again.
he's very busy, dun disturb him. no, he will appear when he has some jokes to share. no, he will appear in front of u the next election. no, he also dun know how to solve the problem without losing his job. no, dun know what??? we see many things abt the leaders in this nationwide crisis....decide where u wan to cast yr vote the next time. may be no chance if more grc. anyway, big problem becomes small problem, small problem becomes no problem, typical chinese businessman style.
ReplyDeleteI laughed today. It's so expected and so typical Singaporean.
ReplyDeleteOn Monday, I read a report about some Singaporeans deciding to go to DBS HQ for a silent protest at 10am, Wednesday, 15 Oct.
And on Tuesday, Police issued a warning that such a protest would be considered illegal gathering.
And so today, 15 Oct, at 1000hrs, as expected, there was no protest. Because being Singaporean, all kiasi, decided to listen to Gah-men and therefore chose to stay at home and hide.
There were some disgruntled investors, nonetheless, and media loitering around the building, but that was it.
So Singaporeans, are you still expecting to have the same treatment to have your investment capital returned like your Hong Kong counterparts? First, you've got learn to be as gung-ho as them. Otherwise, don't expect to receive the same outcome. No pain, no gain.
http://www.luxelassstory.blogspot.com/
I laughed today. It's so expected and so typical Singaporean.
ReplyDeleteOn Monday, I read a report about some Singaporeans deciding to go to DBS HQ for a silent protest at 10am, Wednesday, 15 Oct.
And on Tuesday, Police issued a warning that such a protest would be considered illegal gathering.
And so today, 15 Oct, at 1000hrs, as expected, there was no protest. Because being Singaporean, all kiasi, decided to listen to Gah-men and therefore chose to stay at home and hide.
There were some disgruntled investors, nonetheless, and media loitering around the building, but that was it.
So Singaporeans, are you still expecting to have the same treatment to have your investment capital returned like your Hong Kong counterparts? First, you've got learn to be as gung-ho as them. Otherwise, don't expect to receive the same outcome. No pain, no gain.
http://www.luxelassstory.blogspot.com/
Hi, Just Suggesting, Why don't try to contact those DBS staffs that have been retrenched recently. May be we can get some misrepresentation evidence. Hope that this can help.
ReplyDelete