For investors who wish to consider collective legal action, you can attend a briefing by Leonard Loo. Details below:
http://tankinlian.blogspot.com/2008/10/lawyer-no-obligation-no-fee.html
Leonard Loo has proposed that the investors give their intent to take collective action and register their claim. He will explain the strategy to the investors at his briefing. The aim is that actual legal action will be taken only at the last resort and out-of-court settlement will be preferred, in the interest of all parties.
There is a case in the high court for misrepresentation by RM and the FI.This might be the first case in which section 27 of the FAA is put to the test.
ReplyDeleteI hope more FIs and their representatives (RMs and insurance agents) will be sued for breaching this law.
Product sellers and pushers will be at risk of flouting section 27.
It looks like litigation is the only way to drive home the importance of this section and to force MAS to enforce it more vigorously.
This is time that consumers are aware of this section and their right under this section to responsible and competent advice by their consultants .
Dear Mr. Tan,
ReplyDeleteAs the FI has a strategy of divide and rule by splitting the investors, can the investors in the event of class action do the same by just taking the class action on the one of the weakest FIs in the group.
This would be more cost effective.
The President of Sias has written a well supported article on the matter of legal action and recommends against such an action without serious research.
ReplyDeleteAs we all know, all agreements with banks and financial institutions are always one-sided and the institution covered themselves 360 degrees with the attitude: you want to borrow money from us, you have to accept our terms and conditions.
It is therefore a very steep uphill task if the victims want to take legal action, collectively or individually.
The best collective action is simply to shun those banks (and institutions) who insist on the buyers beware (caveat emptor) rule as you have all signed your death warrant with doing business with us, since our trust had been betrayed.
As far as I am concerned, we do business with banks because we trust them. Once this trust is gone, why are we still doing biz with them?
Let us all stop doing biz with those banks who are not prepared to return our capital (we are not asking about interests, etc.) and get everyone we know to support us.
Collective action, YES. Collective action to avoid these banks, not litigation to enrich the lawyers and end up none the wiser, but much the poorer.