Hi Kin Lian,
Now a piece of positive news. MAS has finally responded to the PLEA I had sent last month on behalf of some 80 PN holders in November. I will like to share this with you and the other PN holders, hopefully before the year is out.
I will therefore like to impose once again on your kindness to post MAS's letter (attached below) on your website for their awareness.
We refer to your letter dated 19 November 2008 to Mr Heng Swee Keat, Managing Director, MAS.
2. On 18 December 2008, Morgan Stanley Asia (Singapore) Pte, the arranger of Pinnacle notes published a number of Frequently Asked Questions (FAQs) that address the issues you raised, among others. The FAQs are available athttp://www.morganstanley.com/pinnaclenotes/pdf/series9-10/FAQs_18-12-08.pdf
3. You enquired about the root causes for the devaluation of Pinnacle credit linked notes. Please refer to questions 5 and 11 of the FAQs which explain the reasons for the fall in value of the Notes. You also raised the question on whether any steps could be taken to protect the value of the Pinnacle notes. The petition alluded to steps being taken for the Lehman minibond notes and that these steps if viable should similarly be extended to Pinnacle notes. Please refer to Questions 8 and 9 of the above FAQs where the differences in the circumstances giving rise to early redemption of Minibond notes and the Pinnacle notes are explained, and on the restructuring of Pinnacle notes. You may also refer to MAS' press release of 2 Dec 2008 where we informed investors that due to legal complexities that have arisen, the trustees and receivers are of the view that restructuring of the Minibond notes is not currently viable.
Link to MAS press release on 2 Dec 2008:
4. For consumers who consider that the Pinnacle notes were mis-sold to them, we would advise them to first lodge their complaint directly with the financial institution (FI) that sold them the products. MAS requires FIs to have a rigorous process to look into every complaint of mis-selling and resolve them fairly. In the event that consumers are not satisfied with the FI’s reply, they may consider approaching the Financial Industry Disputes Resolution Centre (FIDReC). FIDReC is an independent institution which aims to provide consumers with a one-stop avenue for resolving disputes in the banking, insurance and capital market sectors. Separately, where we have clear evidence that a FI has breached our laws or regulations, we will hold the FI to account.
5. If you have any queries, please feel free to contact me.
Christina Tan
Consumer Issues Division
Monetary Authority of Singapore
5. If you have any queries, please feel free to contact me.
Christina Tan
Consumer Issues Division
Monetary Authority of Singapore
8 comments:
Anything new? Just a rehash of what has been said at different times in the past.
I am also capable of writing such a reply, if I follow those past events and with a reasonable command of English. After all, such replies don't involve any action to be taken, just compile information or news release.
I consider such replies as non answers, or do it for the sake of doing, typical of bureaucrats, and a highly paid one at that. Don't you see it very often in the mainstream media?
FIs' breaches of the law? you mean they can't see? They ask investors to open eyes big but they are closed to breaches under their nose.
WHAT POSITIVE?!
I read this MAS reply 3 times as I was excited to discover any positive development. Disappointed in the end to see it is just a broken record replaying what was previously said about Minibond and now repackaged for Pinnacle Notes.
River of Tears
stale reply; nothing new. same same.
FIs-FIDREC-MAS.
I don't see as positive. I see it as insult...The harvard trained MD delegated to a low ranking officer to take the rap.
There is noting new about this PC generated reply from MAS>
Class Action is the only way to get redress ! !
Actually MAS owes Singaporean basic answer on why such risky financial products such as Pinnacle Notes is approved to be sold in the first place! These FIs are equally quilty by misleading original investors by promoting it as similar alteratives to Fixed Deposits saving. Therefore you see so many causalties especially elderly folks. Once again, MAS is trying to shy away from its responsibility??
This certain Mr. Quek who posted the MAS reply is clearly not reading the newspaper for a long time.
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