Tan Kin Lian's Blog: Five myths on the Minibonds

Sunday, September 13, 2009

Five myths on the Minibonds

Here are 5 myths that the banks and security firms want the public to believe. I urge the public, who are not aware about the struggle of the investors, to read about the injustice that has been done.

Many people got the mistaken impression that the Singapore authority has helped many investors to get fair compensation. This is the impression given by the headlines in the mainstream papers. But this impression does not represent the true situation.

Think again. Out of over $500 million that has been invested, the total amount of compensation was only $107 million. Just about 20% was compensated. This is far short of the compensation offered in Hong Kong and Taiwan.

Are we an honest society?

21 comments:

Anonymous said...: It is important for the general public to be aware of the true nature and facts of the whole saga.; September 13, 2009 9:46 AM
Tan Kin Lian said...: If you are interested to know how the truth can be distorted by people in power, go and watch the performance of Animal Farm on 10 and 11 October 2009 at the Victoria Theater. This is based on a historic novel written by George Orwell.

http://tankinlian.blogspot.com/search?q=animal+farm; September 13, 2009 10:00 AM
Anonymous said...: ""The most unethical market plot by the securities firms is to enlist the help of IFA firms in the marketing of Minibond. ""
This above statement extracted from MIAG is a good summary.

Is it illegal to use IFA as an "Introducer"?
It seems that many who bought from Sec firms via IFA still could not complain to Fidrec?
Is it true? Is it because the "Introducer agreement" is illegal? Anyone has the answer? Thanks.; September 13, 2009 10:44 AM
Anonymous said...: IFA firms are like runners in the turf club.; September 13, 2009 11:23 AM
Anonymous said...: I suggest those bought from IFA's group together and sue the IFA's as well. Remember the slim 10 case, advertisers can be sued as well.; September 13, 2009 11:26 AM
Anonymous said...: Not forgetting a big part of it came from Great Eastern, the rest of the banks just act blurr.; September 13, 2009 1:51 PM
Anonymous said...: Govt only takes in graduates with 1st class honours so that they can present statistic in a way that gets everyone believing they are doing great. If case is close after the report, then they have done a good coverup. If not, then they just become a bit more honest as having more statistical lies will cost them their jobs.; September 13, 2009 5:27 PM
Anonymous said...: """She appealed, her case went to Fidrec's panel of adjudicators, and she got her $60,000 back two weeks later - minus $500 in earned interest."""

So unfair. Why FTs can get back the money while we get nothings???
Why??; September 13, 2009 8:09 PM
Anonymous said...: If you were introduced by IFA to a stockbroker to buy these structured products, it does not help even if your case is heard by Fidrec. Speaking from experience, Fidrec also will dismiss your case using the stockbroker "only execute your order" argument and not responsible for explaining the product risk to you. What twisted logic: the same toxic product, same class of investors but just different sellers(stockbrokers instead of banks) and they can escape using a strange loophole that MAS is silent about.; September 13, 2009 10:11 PM
Anonymous said...: The FTs might know very little english, but they may hv a degree.
Why they get 100% & we get nothing?
Where is the logic?; September 13, 2009 10:42 PM
Anonymous said...: The logic is MAS knows that they let this toxic fall through the cracks. They were holding hands with FIs, trustees and LB i.e. charging fees etc.

While HK SFC took the approach to savage with the blessing from their govt, in Singapore, the govt decided that it is not MAS problem.

Since it is not MAS problem, they need not care how things are define or done. All they need to do is to publish a investigation report, do a few biography of MAS chairman to savage reputation, tell investors not to talk to them but talk to FIDREC or FIs etc.

So, how can DBS lose a suit by 204 HN5 investors? Who will know how investors are compensated? Do some statistic twisting and all will looks fine. Even the Hong Kong people were impress by Sgp statistic that till now, they are still confuse.; September 14, 2009 9:41 AM
Anonymous said...: Based on the judgement passed down, FIDREC adjudicator Mr Adrian Soon is obviously a wanyang tool working for FIs.; September 14, 2009 1:15 PM
Anonymous said...: Pictures are getting clearer now that both MAS and FIDREC are the killers and protectors of FIs as our govt has big stake in the later.No matter how big and small our sum of investment in FIs, they have some ways to screw you up until you totally give up.Don't be cheated by one special case and think that all cases in FIDREC are fair. The opposite is the truth.
We left only one choice in our fight -- legal action. We might lose the fight, but it definitely gives a lot of damages to the so called financial hub, and the longer the battle lasts, the extent of damages will be greater than they thought.; September 16, 2009 12:54 PM
Anonymous said...: To take legal action against FI's is not to damage Singapore as a financial centre. We seek fair compensation to enhance Singapore as a financail centre.; September 17, 2009 10:46 AM
Anonymous said...: is legal action the best way? FI have access to the best lawyers. legal fees to the individual investors is like "bullock cart wheel" but peanuts to the FI. We should use methods that cost next to nothing but will impact maximum damage to the FIs. Examples are:

1) Stop giving them any more business

2) regularly talk about this saga, spread the word around about their misdeeds.

3) Constantly try to convince MAS, Ministers and MPs to get involved; September 18, 2009 12:33 AM
Anonymous said...: In Singapore there are only 3 local banks and ? brokering firms, if stop trading with them, where can we go. For this reason, i think it is wrong to have so few local banks. Another example why Singapore wants to be no. 1 in the world!
12.33am- Every thing must come with a prize,class action will put more presure on MAS.; September 18, 2009 11:50 AM
Anonymous said...: Heard from a friend who works in a foreign bank, on minibond issue, that the bank refused to compensate initially & evetually only paid less than 25% to
1.an old people with medical evidence been mentally ill at the time sales taken place
2. A housewife who brought her children to Singapore for English education (they are from a country that everyone knows english is rarely used)
3. a mid age low income & education first time investor who invested 50% of his savings in minibond.

And the bank paid 100% to
1. A master degree in economic & Finance who works in an offshore bank as top management.
2. A lawyer
3. Senior Accountant from big audit firm; October 17, 2009 6:55 PM
Anonymous said...: """And the bank paid 100% to
1. A master degree in economic & Finance who works in an offshore bank as top management.
2. A lawyer
3. Senior Accountant from big audit firm"""

Sad to hear this.
Is it true? Income gap is widening.....; November 17, 2009 9:04 PM
Anonymous said...: Yes, I heard that as long as u can argue well with the FIs .... likely those who are educated, u able to get more .... !!!; November 24, 2009 2:21 PM
Anonymous said...: Re. Is the issue on Pinnacle Notes dead?

Dear Mr. Tan,

Pushed by a marketing officer from Phillip Capital, I bought $16,000 Pannacle Notes in 2006. The guy said to me that the notes were credit-linked to China, Korea, Thailand, Malaysia and some big banks, do you think you could fail? However, it went dead and I finally received $91.82 from my investment in last August. I believe that the guy cheated me and Phillip must bear some responsibity for the lost of my money. Do you think I still have some chance to claim a part of my money back?

Thank you and regards,
Charles; February 24, 2010 2:31 PM
Anonymous said...: I bought Pinnacle 5 Series. The expiry is 2011 April.
Current value is 1%.
It is linked to Bank of America, CitiBank ,DBS, Stand Chartered and HSBC.
Will i get back my principal in 2011 ???; March 10, 2010 10:27 AM