Legal Action
The investors can take legal action on the following grounds:
a) against the distributor (i.e. the financial institution that sold the product to you) on the grounds that they have mis-represented the product or have failed in their duty to give proper advice.
b) against the issuer (i.e. the bank that created the product) on the grounds of mis-representation, fraud or other wrong doings.
If the investors take legal action, their lawyers have to prove the case in court. This is expensive and has an uncertain outcome. There are two class actions (involving the Mini bond and the High Notes 5) being heard in the Singapore court.
FIDREC
Many investors have taken an adjudication case in FIDREC, which is rather inexpensive. Some investors were satisfied with the decision by the FIDREC adjudicator, but many were dis-satisfied with the outcome.
CLASS ACTION IN USA
A US lawyer is holding a seminar in March to explain how investors can participate in a class action to recover their losses against the issuers in USA. More details are set out in a separate posting in this blog.
Tan Kin Lian
Some of the Pinacle notes may now have less than 5% market value.
ReplyDeleteIf u go to Fidrec, the compensation is likely less than 30% based on market vale.
But who know, if you are lucky, u may get back your principal in 2-3 years' time.
But can u wait so long???
Would FIs allow u to wait so long???
Would Fidrec allow u to wait so long???
What should u do now??
Are u prepared to "loss" 70% of the value just to get 15% now???
Where does it say that you can get back your principal upon maturity? This is a misconception created by misleading and ambiguous statements in the prospectus or by the salesman.
ReplyDeleteMy understanding is that this toxic product behaves like a option,ie.,it decays with time. Upon it's expiry you either get back only a fraction of the original value or nothing at all, after deductions for commissions, fees and expenses.
For some of the Pinnacle Notes that has not yet gone bust, is it true that the holders will get back the full amount upon maturity assuming that there is no further defaults?
ReplyDelete""""For some of the Pinnacle Notes that has not yet gone bust, is it true that the holders will get back the full amount upon maturity assuming that there is no further defaults?"""
ReplyDeleteOf course, if there is no default.
Everyone seems to have lost confidence even in the most basic things.
I don't think it can be that "toxic"..