A few months ago, the media reports gave the impression that a high proportion of credit linked note investors in Singapore received full or partial compensation. The investors in Hong Kong used this reports to pressure their Government to set similar compensation for them. The general public believed that the regulators had intervened to get satisfactory compensation for the Singapore investors.
As the months went by, many Singapore investors, especially those who invested a large sum, were disappointed that their requests for compensation were rejected by the financial institutions or the compensation offers were unacceptably low.
Many investors rejected the offers and brought their cases to be heard in FIDREC. A few cases had their cases adjudicated with disappointing results to the investors.
Some investors did received satisfactory compensation, which they accepted gratefully. But, the proportion appears to be small.
The Legislative Assemby in Hong Kong had summoned the regulatory authority to testify in their chambers. These hearings were well reported in the media. The legislators were unhappy with the measures taken by the regulators before and after the crisis had erupted. In response, the regulators were compelled to take stronger action now to remedy the situation.
Recent media reports suggested that some financial institutions in Hong Kong are now willing to compensate the investors at more than 50%, which is more generous that the settlements offered in Singapore.
In my view, a compensation of 50% of the amount of loss would be fair, as the loss should be shared equally between the distributor (due to their negligence in mis-advising the investors about the nature of the product) and the investors (who wanted to earn a higher yield).
I hope that all investors in Singapore will receive this level of compensation, regardless of their age or educational level.
Tan Kin Lian
MR TAN
ReplyDeleteThanks for keeping us updated. I share the sentiment that HK investor will get higher compensation.
It was reported that "FIs in Hong Kong are now willing to compensate the investors at more than 50%". I think the FIs will not come to this position without the voice and work of HK Legislative Assembly. The FIs would not voluntarily give full compensation, even they are in clear breach. This is because compensation in full is admission of breaching a "statutory requirement", that will meet both restitution and punishment.
Will anyone wants to admit to fouling the laws, voluntarily?
CASHEW NUT
Unfortunately, the only way out for those rejected investors is through lawsuit. The amount required for a lawsuit is around 300K to 500K. The FIs know about this and they are not afraid of lawsuit. I hope the authority can come forward to help these investors.
ReplyDeleteAfter many weeks of waiting, FIDReC has finally released results: For those who are educated, you have signed therefore you know 1...2...3..... Therefore you get "ZERO". Thank you for using FIDReC.
ReplyDeleteAny difference from FIs?
S'pore is quite different from HK in many ways though both were used to be a British Colony.
ReplyDeleteI seriously doubt that S'pore investors will get the same or even better compensations than their counterparts in HK.
Politics play a big part in getting a fair compensation in HK as those in power now fear that their votes will be greatly affected in the next GE if they don't handle the compensation well now.
But in S'pore, sad that the fear is coming from the investors not those in power.
Pls realise that in HK buy back is proposed.
ReplyDeleteBank ends up with whole minbond, whatever the compensation.
Here if bank compensates 25%, bank gets 25% of minibond and investor retains 75%.
To: Anonymous on June 24, 2009 9:51 AM.
ReplyDeleteYou said "Unfortunately, the only way out ... is through lawsuit. The amount required for a lawsuit is around 300K to 500K. The FIs know about this ..." I am not sure whether MAS knows about the legal costs will be a burden to small investors? Can anyone enlighten?
FROM CASHEW NUT
According to Parliament Report some FI's have done some wrongdoing. When is MAS going to publish the report?
ReplyDeleteagreed. 50% is a fair value.
ReplyDeleteBut how many can get 50%????
How many can get 10%?
9:35PM,
ReplyDeleteYou need to be an illiterate in English in order to get 50% or slightly more. If you are educated, most likely you will get "ZERO". That is SINGAPORE, my dear citizens.
9:51AM,
ReplyDeletePlse talk to your Legal Action leaders of the product you purchased. They can explain to you how expensive is the legal cost. Mr Tan has the contact of all the leaders. Most of the leaders have appointed lawyers and know their legal position pretty well by now.
Thanks for giving us such info.
ReplyDeleteThere has been no news for a long times.
The legal cost will be a few millions. Does MAS know that? How could we find another few millions to fight the case?????
ReplyDeleteTalk to Lockton companies (singapore) for the After The Event insurance. If you strongly believe that you have been mis-sold Lockton will insure you. No upfront fees or payment. Tell your lawyers to talk to them. Details below
ReplyDeleteAddress:
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Singapore 068877
Telephone:
(65) 6221 1288
Fax:
(65) 6225 0682
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This is a popular recourse in UK to sue a big company . Very often poor people are disadvantaged because of fear and lack of financial clout.If your case has a good chance of winning the insurance company will underwrite your case. Win or loss the insurer will take care of ALL the costs.
After the event insurance is certainly one of the avenus to consider. I do not know whether it has to be regulated or approved by MINLAW. Investors when suing FI's do not want to have too much exposure.
ReplyDeleteAll the class action groups please take note.
So far FIDReC is compensating following groups of investors:
ReplyDelete1. Age 62 years and above without the presence of 1 more Business Manager during the sales.
2. Invested amount is more than 50% of total asset excluding HDB flat.
HK is smart. Use the name "Buy back" to give every victim at least 60%.
ReplyDeleteIf you subject people to so many sleepless night and sufferings by going to FIs or , and yet be compensated so little,or worse, 0 percent, people will not forget.
It is easy to give everyone something (e.g. 50%), and everybody happy.
HK people is smart & experienced.
June 25,2009 527pm- If indeed what you mentioned is FIDReC's guidelines, it is better to publish openly to public. FIDReC will have less works to do and investors less forms to fill. Perhaps FI's have less money to pay FIDReC too. Could FIDReC please comment in the interest of efficiency.
ReplyDeleteAnonymous said... "So far FIDReC is compensating following groups of investors: 1. Age 62 years and above without the presence of 1 more Business Manager during the sales. 2. Invested amount is more than 50% of total asset excluding HDB flat." June 25, 2009 5:27 PM
ReplyDeleteCan anybody enlighten me why compensation for mis-selling is affected by your age and wealth? Whether you are cheated or not is based on the act of cheating and not based on the the profile of the person being cheated. For example, a rape is a rape; whether you are a young girl or old woman should not have a bearing in determining the act of rape.
Do you think my logic make sense?
CASHEW NUT
Why not learn from HK.
ReplyDeleteIf u make the FIs & customer waste so much time and energy argue with another, which may involved their family & friends, the cracks will be hard to heal.
It would be worse if people perceived they were not treated fairly after going thru all these.
Why not just compensate everybody something by buying back and then move on?
Hi Cashew Nut,
ReplyDeleteThis is the judgement passed down by the honourably adjudicator, a retired judge. You can post your question to the adjudicator and your million dollar pay elite Ministers. Plse just wait for the "BIG EGG" award to you by the FIDReC Adjudicator when your turn comes.
Very sadly say, this is uniquely Singapore.
Hi 11;53pm,
ReplyDeleteThis is exactly what the FIDReC Case Managers do to some complainants to drop their case, save your time and save S$53.50.
Plse check with your Case Manager. May be you should do the same.
Yes, make sense! A rape is a rape, rape should not be streaming according to young or old.
ReplyDeleteLast time P3 got streaming, later P4 got streaming, now minibond investors also got streaming. This streaming system really is "uniquely S'pore"!
No wonder previously many HK citizens with S'pore PRs eventually left the little red dot for good in exodus, may be they couldn't stand the streaming then?
After so much suffering, sleepless nights and still get little or nothing, it will make people feel sour.
ReplyDelete