Letter sent to Straits Times
I read your report in The Straits Times dated 24 October 2008, entitled "DBS begins process to compensate customers". It had a statement which mentioned "Brokerages like OCBC Securities, which distribute, but do not advise investors on Minibonds, ..........".
I beg to differ with the words 'do not advise'. OCBC Securities has an alternative product department which gives advice on alternative products such as minibonds, pinnacle notes, equity linked notes, etc. By stating so boldly that they only distribute but do not adivse is clearly a misnormer. How else can you market your products if you do not advise? Do you think clients of OCBC Securties will just purchase these products off the shelf with no questiones asked and advice given by their alternative product sales personnel. Insofar, I find statements made by OCBC Securities as a way of trying to evade responsibility and I find it very disturbing.
For your information, my husband and I are both victims of the minibond and pinnacle notes debacle and you probably can guess who had sold us the products. I also find that brokerages (in general) that had marketed these products to their clients, have been keeping a low profile and not willing to admit to any misrepresentation in mis-selling. Perhaps it is time to put pressure on them to "do the right thing' as of the like of DBS, Maybank etc. "
Regards
C P Tay
Now they are avoiding because that is the nail that will seal their coffin.Yes the RMs didn't advise but they sold, mis-sold
ReplyDeleteMAS should look seriously into this. Miss-selling and misrepresentation is so rampant and blatantly committed daily by consultants at the bank and the insurance agents. These people are no advisers but salesmen and women who peddle and traffick in products.
I agree the bokerage houses that mis-sold these products had handled their complaints very badly. We should collectively pressure them to let us know how they will deal with the complaints and not hide in the background. I am extremely concern that having sold the products, they now say they don't advise but just execute orders. Be responsible!
ReplyDeleteI agree fully. These insurance agents are blood sucker. My insurance agent (my friend) forced me to part with all my CPF monies and buy from her 4 unit trusts. I keep saying no to her but she is so persistence that she called me every day and drive me nuts. She does not take "NO" for an answer. Apparently she is one of the top 10agency in her company and her name is Margaret. She is filthy rich and wants more money. She is one who has no integrity and ethics. Only money matters to her. It is as though she can bring it along with her when she perish from this world.
ReplyDeletehttp://www.asiaone.com/Business/News/My%2BMoney/Story/A1Story20081022-95556.html
ReplyDeleteMinister Lim HK ,'Unless an investor chooses to opt out of receiving advice......'
did your sales rep disclose this to u UPFRONT ?
Does the Alternatives Investment Dept brochure deem as a advisory+recommendation- ' suitable for conservative investors e.g LB Minibond
A policeman will warn & announce to the suspect his rights eg. u have the right to remain silent ... did the FI warn us ?
On the sales and advisory process, Mr Lim cited the FAA, which sets out the steps to be followed when giving advice on investment products.
'Unless an investor chooses to opt out of receiving advice, FIs and their representatives must have a reasonable basis when recommending investments,' he said. 'In doing so, FIs must consider the investment objectives, financial situation and needs of the investor.'
I believe whoever is selling the structured products must have the duty to perform the financial needs analysis for investors, unless opted out by the investors. So a bank or a brokerage house, it must observe the FA act. MAS should not focus only on banks and finance company. It should also investigate what such brokerage houses are doing.
ReplyDeleteIf they "don't advise", why they hv advisers, or link up with other IFAs to sell or mkt the product???
ReplyDeletesadly the IFAs who gave us advice are either:
ReplyDeletea) not fully aware of the risk themselves, given only a 1-2 hrs training seminar jointly by Issuer and the "Broker". Some are "victims" themselves, having sold the products to their own family members.
b) are hiding behind the veil of "Referal"/"Introducer" - which means they are not required to do risk profiling, suitability of product to individual.
MAS MUST STEP IN TO ADMIT THERE HAVE BEEN OVERSIGHTS. WE WERE ALL MISLED, REGARDLESS OF EDUCATION, AGE. FIs MUST COMPENSATE MOST, IF NOT ALL, OF THE LOSS.