Tan Kin Lian's Blog: 50% compensation for Minibond

Wednesday, July 29, 2009

50% compensation for Minibond

Hi Mr. Tan
Thank you very much for helping the CLN victims. Your Blog has been my lifeline for the past few months. I have signed your petition to PM Lee.

I invested $X in Minibond. I have filed my case with FIDREC. Upon mediation, FI offerred 20%. I rejected and went for adjudication. FI then offered 35%. I submitted additional documents.

Later, the FIDREC case manager informed me that the FI offerred 50%, the amount I initially asked for. The final offer of 50% made me shocked, very angry and felt very bullied again. I wanted to go ahead with the adjudication. Can I ask for 100% compensation? Can I accept the compensation, as I already signed the Petition?

REPLY
It is all right for you to accept the compensation, although you signed the Petition. I suggest that you should ask for compensation of 50% and any balance on maturity (in case the matuirty sum exceeds 50%). Some of the Minibond actually has value more than 50%.

Lesson: It is quite bad for the financial institution to make it so difficult and stressful for the customer to get fair compensation.

27 comments:

Anonymous said...: I read with great curiousity

* Is that FIDREC you are referring to some SOUVENIR STORE in some third world country, where you can bargain from 25% to 35% to 50%
* If the original offer of 25% can be doubled to 50%, does it mean the original complaint handling was unfair and unjust

Sorry, I am just a by-stander. Did I go to the correct blog. I was trying to find bargain to buy fish and meat.

From Fish-Buyer; July 29, 2009 7:01 PM
Anonymous said...: In HK, they stand united, and everybody get at least 60% to 70%.
I Sg, even u have a very strong case, they only give you 20%, 30% or 50%.
What to do.; July 29, 2009 8:26 PM
Anonymous said...: How you do it? You mean you could reject after adjudication? and ask for another adjudication? That is amazing.
We are keen to learn from You.; July 29, 2009 9:39 PM
Anonymous said...: What kind of logic is this? During Sales talk, they treat us like King. Once mis-sell and mis-rep happens, they treat us like dirt. We must slowly show proof to get back our own money when they conned us into it.; July 29, 2009 11:09 PM
Anonymous said...: I have filed my case with FIDREC since FI has send a letter to inform that there is no compensation offer to me for my case. After that there is mediation by FI, FI first offerred 15%. I rejected and later they offered 35% which I did not accept it since they cannot answer how they derived the % and how much is my minibond value todate but want me to make a decision so as to close the case just like that. I felt being bully. They stress that is the maximum they can offer. So FIDREC call me to arrange for a hearing.
I will see how it go.....headache also. Any advice or experience to share how to deal with it?; July 29, 2009 11:32 PM
CK said...: Wow 50% compensation. On what basis FI raised compensation from 20% to 50%? Very arbitrary and unfair. Different FIs different standards. This tantamounts to bullying by divide and conquror. The whole process must be very intimidating to small investors like us.

MAS must surely know such will be the consequences when it decided on a hands-off approach.

I wonder how many cases out there similar to this, when FI raised payout from initial miniscule amount to 50% or more. Does MAS compile such data from FIDREC, and will MAS make public such data? The dice is loaded against the small individual investors. Once you sign to accept compensation, you are bounded by confidentiality agreement not to share this information.

But surely MAS can demand from FIs and compile such information to be made public to ensure that FIs are not dealing fairly and not taking advantage of small and misled investors.; July 30, 2009 12:40 AM
Anonymous said...: Even u have a very strong case. Some FI (esp the sec) just refuse to give u a single cents. What can u do? We are totally at their mercy!!
Really envy u. They give u 30%, then 50%.
If they don't give u a single cent, what can u do?; July 30, 2009 7:35 AM
Anonymous said...: I filed a complaint with Maybank and received ZERO compensation and that is it.; July 30, 2009 7:45 AM
Anonymous said...: Various articles been written to the press questioning the roles of MAS and asking why the different compensation in Hong Kong and Spore.
Until today I have yet to hear a formal reply in the forum. Are they deaf and dumb ? Probably they want to wear us down and hope the matter will just slowly be forgotten. Guilty conscience on their part ?; July 30, 2009 8:19 AM
Anonymous said...: Hi
Good to hear that after this long tedious process, you manage to get 50% compensation. Many of us still get rejection or <20% even though we are conservative investor. Can you share some of your tips?

Thanks
Hopeful; July 30, 2009 11:29 AM
Anonymous said...: I have complained to FIDREC and is now arranging for mediation. What should I look out for?

Did anyone have their risk profiling done before purchase of the minibond? Is this a requirement?; July 30, 2009 11:30 AM
Anonymous said...: This is lesson to tell us that we must stand united as one and get all involved in mis-selling to fight for our right.

I am sure there will people accepting 20% compensation, unknowingly that they can get higher if they go one more step to be heard.

The FIs are really heartless.; July 30, 2009 12:14 PM
Anonymous said...: The FI rejected my case initially and I filed my case with FRIDEC. When I was about to submit for adjucation, the FI give an offer but with conditions to withdraw certain remarks in my letters which they consider slanderous and I have to apologise to them. Do u think it's right for the FI to bully elderly folks into accepting their offer by their threatening behaviour.
TKS; July 30, 2009 3:42 PM
Anonymous said...: I know Maybank is very "CAT" in compensating. They maintain their stance and is prepared to go for adjudication if u dun accept their offer of 10% or lesser. Poor us, we have to proof their mis-sellig and stress ourselves to fight for our rights ! Furthermore, the fees to go for hearing in Fidrec is by Series than per product. Even we win, this cost we still have to bear. How unfair ! What is MAS doing here ? By keeping dump is how they work ? Pls stay united & dun simply accept that miserable offer, we really get bully by the FIs !; July 30, 2009 4:52 PM
Anonymous said...: Maybe you should go to this website www.miagsg.com to view a group of minibond holders who are currently preparing a class action against the FIs. I heard those who were partially compensated can also take part to recover the balance.; July 30, 2009 5:08 PM
Anonymous said...: There are some basic but important problems we have to face when we go for FiDREC for the
initial mediation stage and later on the adjudication stage. This will naturally touches
on whether the whole process is fair or unfair.
The mediation stage is for both parties, FI and
investor, to submit their papers for complaint and reply. FiDREC will tries to mediate with both parties on the offers form FI. If both cannot agree with the offer, FiDREC has to set a date for both parties to submit their final
rebuttal. The problems arise if FiDREC do not adhere to the date for both parties to comply.
Unfortunately FIs seem to have the flexibility to submit their final rebuttal whenever as they like. Is it fair?
At the adjudication stage, I strongly feel that not all the judges and senior lawyers fully understand the background of the toxic products. If they were not aware that several countries has already settle the compensation percentage satisfactorily, they might impose an unreasonable percentage to investors.To avoid these problems arises, FiDREC should provide all necessary information to adjudication judges for consideration in order to achieve
an acceptable fairer verdict.
Further more, the residual value of the financial products also have to be made known to all the judges. HK model of settlement also put it as an compensation component.
FiDREC do aware these problems or not?; July 30, 2009 6:36 PM
Anonymous said...: SG's approach depends a lot on ind FIs.
If the FIs do not want to compensate u, no matter what u say or write, they just not inteested.
What can u do? cry for their future? cry for ???'s future?
What can u do? U still get 0 or may 10-20%.
For those get 20%, they are so happy bec 60-90% get 0 or very little.
What can u do?; July 30, 2009 8:44 PM
Anonymous said...: It's really very disheartening to see the govt let the FIs any how treat those helpless investors. Any how offer certain % of compensation, let FIs acts like a hooligans again...FIs see those can eat ones just eat. Why can't SGP authorities came out to say or do some things for their citizen who are affected by the incident. This is the best time for them to demonstrate to all Singaporeans what kind of govt they are. See what HK authorities did and managed the case, they are at least sincere to negotiate the issue with the FIs for their citizens. No bullshitting. Unlike SGP authorities,just know how to put up a good show to tell people out there how they have punished the FIs.Is that what they meant world class standard? However, how about those affected investors??? In fact, they are barking at the wrong tree.Try deviating from the core subject and close case; and say that's it I have already done my job the rest are none of my business.Folks, take care yrselves.; July 30, 2009 11:47 PM
Anonymous said...: All the victims so far have to bear the bullies from FIs, I think to a large extent is the outcome of the very irresponsible and useless attitude of MAS. As a citizen, I have no hesitation if I could do to vote them out of office because the leadership are not doing what is right and up to now has remained silent especially in light of what is happening in HK. They are just wasting our tax payer money. It is a shame on the govt too.; July 31, 2009 12:47 AM
Anonymous said...: "The most unethical market plot by the securities firms is to enlist the help of Independent Financial Advisory firms [IFA] in the marketing of Minibond. "

"Securities firms' claims of "Order Executor" is just a smoke screen, a dubious claim to fool the public."

Please read www.miasg.com for more info. It is well analysed.; July 31, 2009 5:46 AM
Anonymous said...: "When Minibond was launched in early 2007, the fixed deposit rate was 3.5% from SCB. For single premium endowment policies, you get 4% return plus insurance for a tenure of 5 years to 8 years. All these financial products bear very low risk and comparable returns. So, what high returns are we talking about? It is a myth perpetuated by the Minibond distributors after the Lehman collapsed to mislead the public and to evade their responsibilities."

Read from www.miasg.com carefully.
It may help you in your submission to Fidrec.; July 31, 2009 6:25 AM
Anonymous said...: The samll investors are already so weak & poor.
Why must be so obsessed in protecting the big boys.
Why can't just be fair to both parties.
Sad.; July 31, 2009 7:32 AM
Anonymous said...: FI = MAS = Govt

citizen = mb investors = nobody.

Now you know why Govt and MAS is not replying and why FIs continue to bully us at mediation?; July 31, 2009 10:38 AM
Anonymous said...: What shall we do with the Singapore flag. The five stars, so my primary school teacher told me many many years ago, represent justice, peace, prosperity, equality and progress. Let us tear down the flag if these values are not upheld and ignored from top down. It's time to have a new flag with five black crosses, to represent unfairness, nepotism, persecution, boastfulness, never-say-sorry, these seem to be the sublime messages being sent top down to the citizens.; July 31, 2009 12:12 PM
Anonymous said...: When you want something from the citizens, you talk about keeping talent, what other countries are doing, why we need to do this and that.

Now with HK giving at least 60%, why don't you use the same method? Compare with HK, tell us how you did better, tell us why you deserve the $million salary?

After this morning interview of a S'porean in HK on 93.8, it goes to show HK govt care more about their people than you and draws very much less salary.

Why don't you use the same method and compare again how much you care for the citizen esp. the MB investors who lost their life savings because of FIs bullying.; July 31, 2009 5:28 PM
Anonymous said...: If you asked for 50%, and get 50% compensation, then you should be contented and move on.

If you not happy with 50% then should ask for 100% in the first place and prepare a longer wait.

Now, you got what you want and still demand more. That is the greed that got you in the hot soup in the first place.

Why not be contented with 1% in fixed deposit in the first place? Sigh, being greedy is your downfall. Live simply and be happy.; July 31, 2009 7:20 PM
Anonymous said...: Many investors that bought from securities firms are through IFAs. The key responsibility of an IFA is basically that of a financial doctor who is required to ascertain and diagnose the investor’s financial needs and objectives, his risk profile, his current investment portfolio before he recommends appropriate investment product to his client. The IFA is governed by Financial Advisors Act just like the banks. The sec firms enlisted IFA to market to their clients by giving them an “Introducer Script” that absolves the IFA from carry out the fact-finding step mentioned above while securities firms claim that they are just "Order Executor"

Is it unethical?
I don't know. Just open your eyes.; July 31, 2009 8:37 PM

Wednesday, July 29, 2009

50% compensation for Minibond

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