Tan Kin Lian's Blog: A good settlement mediated by FIDREC

Sunday, December 27, 2009

A good settlement mediated by FIDREC

An investor told me that the FIDREC mediator was able to get the financial institution to buy back 50% of the Lehman mini-bonds at full value (less interest received). He retained the remaining 50% of the investment.

In my view, this settlement is fair and is in accordance with my suggestion that both parties (i.e. the distributor and the investor) should share the loss equally. Actually, the investor suffered a larger loss as the capital sum had been invested for a few years without any return.

Anyway, the investor was glad to receive this settlement and thanked me for advising him to go to FIDREC. I hope that the other financial institutions would make a similar offer to their investors.

Tan Kin Lian

3 comments:

Anonymous said...: The regulator and the public should be wary of commission driven transaction or advice by now. It should start finding a replacement of this evil model by a more equitable, fair to all parties, remuneration model which is commensurate with the quality, complexity, scope of service advisory and NOT product pushing peddling like koyokman at Waterloo/Albert street or pasar malam.
There are some insurance agents I spoke to said this will drive away many people from joining the industry.( I wish that they stay away). They didn't know that they were spot on when they said that. This is exactly what the regulator wants without having to take unpleasant action to sack them.
They still think insurance and investment need to be sold and without them the industry will collapse. They should look in the mirror to see if the image is a Warren Buffet who cannot be faulted for integrity and honesty.
In other jurisdictions it is the customers who call upon the advisers or referred by another satisfied customers.
The customers should realise that if they are cold called or prospected these people are only salesmen who cannot be trusted and should be suspected.. The doctors and lawyers don't prospect or cold call their customers or do raodshows, do they? What if they do will you be let them be your adviser? Something is amiss, right?
Only koyokman and peddlers do that, right?
So , MAS should ban all this to prevent another debacle and it is time for agents cleansing.MAS can afford to remove 3/4 of the agents in Singapore mainly of salesmen or sales champions.Sales champions cannot 'heal' you of your financial woes but worsen it, right?
Consumers should look to this FISCA for help when in doubt.FISCA is not a product distributor but an educational body to empower consumers in the planning of their financial life.; December 27, 2009 6:08 PM
Anonymous said...: HOw about Pinnacle Notes? Many no remaining value at all now, then how will FIdrec make the mediation?; December 29, 2009 1:11 PM
Anonymous said...: To me, mediation is only a "wayang" show. I have checked with many investors and know that they had been called to go mediation with an IFA but end up just wasted their time. IFAs claimed that they are only "introducer", so they are not liable. On the other hand, OSPL, the boss behind this saga, claimed they are "order Executor" and refuse to come for mediation ! Are they trying to stress all of us and make us try to forget about the claim ? Until now pass more than a year, many cases still dangling in the AIR !; December 30, 2009 4:35 PM