The Securities and Futures Commission may disqualify banks from selling securities products if they are not willing to follow the example set by Sun Hung Kai Investment Services over the minibonds saga, sources said.
The company agreed late last month to refund up to HK$85 million to investors who bought structured notes linked to collapsed US investment bank Lehman Brothers.
The regulator will first deal with big banks, the sources said.
The SFC is now liaising with banks to try to get them to settle with minibond investors by using the Sun Hung Kai Investment deal as a reference and may resort to disciplinary action, the sources said.
Source
MAS should follow the SFC and must not be satisfied with partial settlement.
ReplyDeleteSurely MAS doesn't want to wait for legal action by investors.
MR TAN
ReplyDeleteThanks for positing development in HONG KONG. I am saddened that our counter-part SFC is preparing to take more active role.
I think SFC did the RIGHT thing.
FROM CASHEW NUTS
I agree. This contrast so much with MAS's action. MAS really need to learn from HK.
ReplyDeleteHK SFC work resulted in Sun Hung Kai secirities compensating ALL investors 100%, in comparison MAS miserable result of getting the Singapore securities firms to compensate only 1% of investors. 100% vs 1% - MAS had failed miserably