Tan Kin Lian's Blog: MAS respond to feedback on sale of investment products

Wednesday, September 09, 2009

MAS respond to feedback on sale of investment products

Here is the MAS report.
Give your comments here. What do you like? What is still missing?

32 comments:

Anonymous said...: we are goverment policies' victim. That is enough. We are not going to be the victim for this country another time in the future. So when there is a call to fight for the country, don't count me unless there is a new country with fairness.; September 09, 2009 8:57 AM
Anonymous said...: What the MAS is doing now is just wayang. Everyone with common sense can tell. Whether you've invested in any of those toxic products or not, you won't want to believe them.; September 09, 2009 9:52 AM
Anonymous said...: Mr. Tan,

I didn't know that MAS was only soliciting feedback from organizations and associations.

I submitted my feedback as an individual and it is apparent MAS completely ignored my submission. In the appendix of respondents listed by MAS, all were organizations and associations. No individuals were listed there. I am so angry that my 11 pages submissions were thrown out of the drain. Nothing in the consultation paper states that individuals are not permitted to submit.

Is this how MAS behave to the man-in-the-street?; September 09, 2009 10:25 AM
Parka said...: I see some nice changes but unfortunately, I'm never going to buy any investment products again. Never forever.

The only one thing they should implement is to have all sales pitches recorded. Basically most people buy these products via recommendation from employees, and not from reading the whole thick contract.

What's spoken is never taken account into law. This is the case since I bought the minibond because it was pitched like a normal bond.

Sales pitch recording I think should be made compulsory.; September 09, 2009 10:36 AM
Anonymous said...: Sing the same old song again and again without any guilt feeling. MAS suppose to be the body gaurd of our interest in S'pore, now betray us and becomes the killer and protector of FIs. Its name is already bankrupt and people has no more faith on this corrupted unit.
Show us how to solve the present mis-sell and mis-represent problem, not the future what you should do. THe future has no problem at all as no one is interested in these toxic products anymore. An uneducated low IQ person will understand this. How come the big- fat-paid C/VC of MAS do not konw this fact?; September 09, 2009 10:38 AM
dolphin_precious said...: it is gd tat the MAS is abolishing the usage of the term 'capital protected', as it is an easily misunderstood term by many people.

i have the following suggestions:
1) it should be clearly stated on the marketing brochure in red fonts that 'this is an investment product', as well as the type of investment product (unit trust, investment linked policy, bonds, notes etc) and whether the product is capital guaranteed or not.
2) the product structure (an accurate summary of how the product works) should be clearly stated on the marketing brochure in a diagram format or point form for easy reading and understanding. (i realize that salespeople like to draw diagram to explain but give the excuse that it is very messy and crush it away, refusing to let customer have a copy as proof)
3) the product risks should be clearly stated in red fonts on the marketing brochure.
4) the product tenure, minimal investment amount etc should all be clearly stated on the marketing brochure.
5) customers should be given at least 7days for the cooling off period.
6) all forms and marketing brochures should have a chinese version, to safeguard the interests of many elderly or chinese-educated people (eg. immigrants from China). companies should be held accountable for the accuracy of translation without a protection clause that 'in the event of doubt or discrepancy, the english version will precede the chinese version'. (this will prevent a re-happening of products being translated inaccurately, downplaying its risk like Minibond and Pinnacle Notes, which were shown as bonds in the chinese marketing brochure)
7) there should be stricter rules in place to regulate the banks, financial institutions and insurance companies to ensure that salespeople do not hard-sell products with lies.

hopefully with such measures, it will protect the commoners of singapore and their hard-earned savings.

the Minibond, Pinnacle Notes, High Notes 5, Jubilee Notes saga has been terribly sad. the least the MAS can do is to obtain some justice for the unwitting investors and to prevent the future occurances.; September 09, 2009 10:58 AM
Anonymous said...: Th critical issues are not addressed like the way they are sold, the commission, accountability of the salesperson.; September 09, 2009 10:58 AM
C H Yak said...: The MAS could impose restrictions on marketing and advertising materials, even up to detailing guidelines on the font size and font type.

But it could not get the term "capital or principal protected" defined and will ban the use of this term in marketing materials.

This seems ridiculous.; September 09, 2009 11:13 AM
Anonymous said...: Yes, these actions are good for the future of investment products. So what happen to us, the MB victims? Are we suppose to suffer silently while Taiwan and Hong Kong regulators are ensuring fair play?

Is MAS saying the recognized the problems but too bad those victims have to bear the brunt of the loss because they signed on the dotted lines?

FULL OF CRAP....; September 09, 2009 11:38 AM
Steve Wu said...: MAS (and the rest of the government) is paid for by hard-earned tax dollars. These taxes are hard-earned by the People but taken away rather easily by the government. Currently, many individuals in government cannot differentiate right from wrong, including those in leadership positions. They are NOT representing the interests of the common People, much less than their best interests which is expected of the government.

Someone suggested to picket in front of PM Lee's office. We should always remember the lone old lady who protested in Raffles Place against DBS. Unfortunately, even a one-person protest is outlawed now, anywhere outside HLP.

So we see the fundamental rights to Freedom of Expression and Assembly are NOT so removed from any attempt to achieve justice and fairness in Society.; September 09, 2009 12:15 PM
Anonymous said...: To anonymous September 09, 2009 10:58 AM:
Th critical issues are not addressed like the way they are sold, the commission, accountability of the salesperson.

My 11 page submission critic all the above and call for abolishment of commissions in favor of fee-only. Unfortunately because I submitted as an individual, MAS drew it out of the window as my name was not listed in the Appendix.

This is the LAST time I will make feedback to any government agency. I WILL NOT FEEDBACK ANYMORE.; September 09, 2009 12:51 PM
Anonymous said...: Yea, recently Govt came up with a new regulation that even one-person to picket protest is against the law. Formally more than five persons are disallowed. Is this country an absolute feudal monarchy one? Or this Govt sensed that they are losing power arising from this financial crisis, and they are paranoid now and getting afraid.
As usual when something happened, then they come up with solutions that are too late. I have warned MAS in 2006 about the way these investment products sold by FIs are are not proper and risky to bank customers. But they brushed me aside saying they do not interfere with the selling processes of these FIs.; September 09, 2009 1:17 PM
Anonymous said...: I heard pretest was allowed if we apply a permit. Can we apply a permit from police and go stree to protest????; September 09, 2009 2:05 PM
Anonymous said...: What you expect. Remember Singapore is now ruling by the Lee's dynasty and their running dogs so either you bear with in for years or emigrate to a better and democratic country.
cheer; September 09, 2009 2:21 PM
Anonymous said...: The Report say: "issuers must ensure that their representatives are competent in selling complex investment products".
Stockbrokers like OCBC Securities etc are allowed to sell structured products like Jubilee Notes & minibonds without need to know about their products and hide behind their so-called just "executing order" excuse when the products failed. I wonder if MAS still allow these FIs to use this cover to say investors do not depend on them for product advice?; September 09, 2009 5:24 PM
Concerned said...: Banned the use of the words 'capital or principal protected' in their advertising material? Those financial institutions and their greedy bonus hungry officers can surely find their way this around this and use some other words or phrases that have similar meanings to entice and mislead investors to invest in capital structure products and this story may repeated itself again. MAS should be more stringent and should included phrases - like banned the use of the words 'capital or principal protected' and words or phrases that bears similar meanings or effects; September 09, 2009 5:31 PM
symmetrix said...: While having a Products Highlights Sheet (PHS) is helpful, it is not sufficient to make an informed investment decision.

Assume I am a low-risk investor. If the PHS flags the product as risky, I reject the product outright. The Prospectus and Pricing Statement are irrelevant.

The problem arises if the PHS highlights the product as “safe”. One would still need to read and understand a 100-pg Prospectus and Pricing Statement, before making an investment decision. So we are no better than where we started. Safe or risky product - must understand Prospectus, which a layman does not.

I suggested to MAS that for safe products, the conservative investor should not have to read and understand more than say a 10-page document that contains ALL the pertinent info. The challenge for FIs is to compress 100+ pages of hardcore tech info into 10 plain English pages, for the safe products. Let’s see if they can achieve that. Otherwise many conservative investors will not invest even if the product is classified as “safe” in the PHS.

I would like to see the draft of the PHS once it is ready.; September 09, 2009 9:07 PM
Anonymous said...: Having been burnt by these toxic products I have learnt my lesson. I do not believe anymore whatever is feedback or proposed.

My advice is not to invest in any type of investment product. I will invest only in stocks, at least the risks are well known to everybody and not hidden.; September 09, 2009 9:14 PM
Anonymous said...: My advice is that other than shares, bonds and currency, dont invest in anything else as we are in the eyes open big big environment, you do not have the skill to understand all these complicated things.; September 09, 2009 9:58 PM
Anonymous said...: It is good to see MAS has come out with some measures to protect(hopefully) the commoners with their hard-earned money.
It is hope that MAS can take one step further to regulate the land banking scheme in Singapore. Lately, there are some unhappy investors who bought the UK plots from the land banking company but they are unable to get back the money upon maturity date.
And the company is still actively selling the plots to other potential buyers. Can relevant authority please do something about it ?; September 09, 2009 10:51 PM
Anonymous said...: Just have to wait patiently to see what the next move by MAS and the government.

Not to worry, I am very sure they will slowly releasing all the goodies bit by bit until 6 months before the next election 2011... By then, all the "sweets and incentives" flow like waves towards us, we will "automatically" forgive and forget what they have done and vote for them again....as we are happy to get what we want and they will continue to earn millions.... so it is a win and win situation... ALAS.....

LKY predicts PAP still have another 10 years to govern... I think he know the younger generation will be "smarter" than this generation that they will not easily "buy into this kind of exchange".....; September 09, 2009 10:51 PM
A Singaporean said...: By itself, the proposal sounds cool. Only thing is, too little, too late.; September 10, 2009 3:21 AM
Anonymous said...: Generally speaking
1. Is what is stated in the promotional brochures legal binding or the prospectus supersedes it?

2. I think most sellers' document have some blanket statement like this:"Investors can lose some or all of their investment". With this "protection", the brochure/ salesperson can pitch their products' returns as almost certain to be high, with negligible chance of losing most of your investment right?
After all isn't this protective statement common/standard?, (that investor become numb to it)

3. Investors who even partially based their buying decision on the sales pitch should insist on a written copy/recording of the sales pitch. You have protect yourself with your eyes open, even if the product is registered. : :); September 10, 2009 8:30 AM
Anonymous said...: Policy maker fail to identify problem area.

You make a complaint.
Policy maker make a response.
Policy maker is paid by tax$.

You make a complaint again.
Policy maker make a response again or no response!
Policy maker continue to be paid.

You stop to make a complaint.
Policy maker go paid leave!; September 10, 2009 9:09 AM
Anonymous said...: I have made up my mind. Always been supporting the ruling party. No more.; September 10, 2009 10:49 AM
Anonymous said...: Yes, too little too late. One whole year of agony. Eyes big big watching how HK and Taiwan regulators helped.

An expensive lesson to realize how NATO the establishment has been...; September 10, 2009 3:55 PM
Anonymous said...: Do not believe in what MAS say from now onwards, in other word do not invest in bank or other investment products. Just invest in properties, and the SGX ETFs, at least your money would not be conned.
Also do not take part in investment invitations by Temasek, if this SWF is so good in its investment track records, how come temasek lost so much of our moneys, by buying at the higher end and selling at the lowest. This shows Temasek has no talent and capability in investment decisions.; September 10, 2009 4:34 PM
Anonymous said...: After one whole year of bad treatment by MAS, FIs, listening to boo-boo investments by Temasak and GIC, one must realize that with a little faith in oneself and trust in our commonsense, we can do better than Temasak or GIC.; September 10, 2009 6:39 PM
Anonymous said...: It is really unfortunate that there is always no preventive/precausionary measures being implemented by the regulator or policy makers before hand,and what they are really do in supervisory capacity. It is only changed after something happen or someone being sacrified, then new measures would be implemented. What compensation should be fairly for the innocent victims. Thus, we are just living on trial and errors but should not be on issues that can be thoroughly prevented and avoided.; September 11, 2009 12:08 AM
Anonymous said...: What MAS is saying is simple: let the current murderers go free. But to avoid blame on MAS in the future, we shall warn the potential murderers not to commit any crime! That's it, job done!!; September 11, 2009 1:52 AM
Anonymous said...: Aiyah what to do? Petition signed by 777, people who turn out at HLP around half that no.

It seems like those who are directly affected are too embarrassed to ask even a friend/relative to go along to HLP. Surely situation is not so pathetic that you asked and none of your friends/relatives were willing?
For those who signed buy did not turn up, you may have emergencies on that day. But because "The place has cameras, its too hot, need to go view showflats/ shopping" doesn't count.

Perhaps its takes a much bigger debacle involving much more persons suffering higher losses? I hope that I am wrong on that count.; September 11, 2009 9:12 AM
Anonymous said...: HK SFC and Taiwan Regulator backed the MB investors as they believed they were misled.

MAS turned the other cheek. They folded their arms and stand aside.

TKL send numerours petitions for attention and actions.

MAS/Govt turned the other cheek. They folded their arms and stand aside.

MB investors held numerous gatherings at HLP under TKL leadership.

Govt turned the other cheek. They folded their arms and stand aside. They said nothing.

On the day of election, PAP support rate dropped drastically.

Heartlanders & MB, DBS HN5, Jubilee, Pinacle investors turned the other cheek. They folded their arms and stand aside......; September 12, 2009 12:59 AM

Wednesday, September 09, 2009

MAS respond to feedback on sale of investment products

32 comments:

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