Some investors asked me if they can expect the distributor to compensate for 50% of the loss, when they only earn 3% to 5% as commission to distribute the product. Perhaps 30% is adequate.
I suggest that the distributor should compensate 50% and get the subrogation rights to recover their loss from the issuer of the credit notes. Apart from Lehman Brothers, the other issurers are still in business and are able to compensate the distributors. The distributors can also seek to recover their loss from the receiver of Lehman Brothers.
By acting in this manner, the distributors will be able to win back the trust of their customers, and also reduce their actual loss.
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12/14 - 12/21
- Mis-selling of ILPs in the UK
- Letter of confidentiality
- California Governor order 2 day Unpaid Leave
- Cost of banks
- Survey by FISCA - Financial Services Consumer Asso...
- No claim discount on motor insurance
- Financial product has high penalty
- High charges in this investment-linked plan
- ProTrader - learn trading in a simulated environme...
- Survey - visitors to my blog
- Survey - Compensation on CLN
- Volunteers to help get 100,000 signatures
- Regular visitors to Tan Kin Lian's Blog
- US Lawyers Visiting Hong Kong
- HK Banks set up legal fund
- Buying a property - get a property report
- Investors of failed structured products to know ou...
- Encourage bank relationship managers to do the rig...
- MAS Ensures Progress in Complaints Resolution
- Bank RM has courage and integrity
- Offer of compensation
- SCMP:Lehman claims' bill HK$257m
- Financial advice
- Means testing for subsidised wards
- Downgrade to Medishield
- Fair charges on life insurance policy
- Fair compensation from insurance companies
- Search for a private property
- Offer of voluntary assistance
- Distributor can recover the compensation from the ...
- AsiaOne: Slip sliding into depression
- A crooked product or a crooked system?
- Helplines - for managing mental stress
- Coping with rising health care cost in Singapore
- Mental depression and suicide
- ERP and MRT in Singapore
- Video of my speech at Speaker's Corner - 13 Dec 20...
- Last Meeting on Speaker's Corner, 27 Dec 2008
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