Tan Kin Lian's Blog: Adjudication in FIDREC

Thursday, April 15, 2010

Adjudication in FIDREC

Some people have complained that they were unfairly treated at the FIDREC adjudication hearing. Perhaps they form a minority and that other cases had been handled satisfactorily and fairly. I invite you to share your story in this survey. I may use some of these stories to provide feedback to the appropirate persons, but will not reveal your identity.

16 comments:

Anonymous said...: DBS, which hired Piyush Gupta as chief executive in November last year, paid him at least $4.2m for less than two months' work.

What else is new??; April 15, 2010 9:17 AM
Anonymous said...: Most of the financial products mentioned in this blog (minbonds, high notes, pinnacle notes, life insurance products, credit link notes, land banking ……) are either bad or toxic products.

The question I want to ask is that how could so many products, each designed by a group of “talents” (financial and legal experts), are either bad or even toxic products?; April 15, 2010 9:32 AM
Anonymous said...: I learn a new phase (to me, it is new) “Caveat Emptor” from the way the authorities handling the minibonds saga.

It seem that “Caveat Emptor” means financial institutions do not need to answer for the quality (whether bad or toxic) of the financial products which they sold or designed.; April 15, 2010 10:37 AM
Anonymous said...: If everyone can sell anything that has been approve by MAS, then what is the meaning of "approve by MAS"? My interpretation is that as long as what is written in the prospectus is true and accurate, MAS will approve it.

In the Meeting with KM Lawyers from USA at Grassroot Club two days ago, I was amazed that the lawyers have problems understanding the prospectus and took them a while to piece what is Pinnacle all about.

The nature of the product and how the money was used and the true risk were hidden in a 200 pages of Prospectus and done such a way with lots of legal jargons and twist that KM lawyers are having problems understanding.

So my questions are:

1) Does MAS really understand the Pinnacle Prospectus when KM Lawyers from America are having problem with it?

2) Does MAS really understand what Landbank is all about?

3) If Regulator job is to make sure the English Language in Prospectus is correct then what's the use of being a regulator?

From the above experience, my conclusion is MAS is a our National Financial English Centre [NFEC] to ensure financial products' prospectus meets it's stringent requirements. As for the interest of investors, it is not MAS responsiblity to micro manage.

With the recent promotion of MAS MD, looks like NFEC is the Govt desired model while the interest of the investing public is secondary.; April 15, 2010 11:47 AM
Anonymous said...: Please feed back that for those investment amount is much higher than the 50K limit, FIDREC is not much help at all even the judger aggree that we were misleading or misselling. If goverment can let FIDREC open for all investors, why they limited the compensation amount?; April 15, 2010 1:16 PM
Anonymous said...: MAS is headed by paper scholars who have no inkling of investment products that are sold, they themselves don't understand these sophisticated products at all, and yet worry about their face, and dare not admit it.
The taxpayers are paying for such bumbling, inexperienced and ignorant scholars who think they know a lot hiding behind their glossy desks and paper qualifications with high profile names like Chairman, deputy Chairmaan and Managing Director.
Place them in the wide, wide world, they are still wet behind their ears, no matter how old they are.
Poor quality but with high pay, all on tax payers money.; April 15, 2010 2:35 PM
Anonymous said...: I attended FIDREC as I have no choice i.e. too poor to engage lawyer and too small investment to bother anyone. Judge Adrain Soon was polite while my case was heard slightly more than a year after LB collapsed. I did my best to present my case but personally I felt it is plain stupid as everone knows the FIs have been trained by LB to tell us that MB is a bond [see Straits Times report in 2006 on MB2 marketing] tied to the reference entities and as safe as FD.

Then came the compilation of all the MB series compensation. MB2 and MB3 have at least 50% compensation while MB1 and MB5 have >60% less than 50% compensation. MAS summary in general indicated MB investors took back >60% i.e. better than HK 60-70% compensation initiated by HK SEC.

I was told my judgement reading would be 1-2 months after adjudication but instead it dragged for over 3 months i.e. about the time the liquidation result were released.

My point, FIDREC process is suppose to be fair & transparent and why is there a invisible hand involve so that Sgp compensation beats HK compensation?

Was MB2/MB3 high compensation because MAS/Govt wanted to push up the average % in order to beat HK 60% compensation?

With all these compensation given out, doesn't it goes to show mis-representation was common across the board and the end result is MAS banning FIs from selling Structure Products from 1/2 year to a year.

Was MAS lenient because DBS was also part of the culprit which MAS cannot punish it's paymaster for it?

Very, very fishy. So MAS, as a regulator is suppose to fair and look after the interest of citizens or is it actually a part of the govt and playing politics so that politicians will look good in the end.; April 15, 2010 4:25 PM
Anonymous said...: The Harvard trained FT got promoted for his good handling of the minibomb
dabacle and no explosion, right? His defusing of the situation where no RMs or FIs got sacked or hurt. Anyway consumers are not his business, how much they lost also not his money, so don't care.; April 15, 2010 7:27 PM
Anonymous said...: It is easy to do the job when all the Ms above him already set the direction that we, the retail investors got into this mess because we were greedy i.e. high risk high return.

Is anyone ensuring scams, toxic products do not reach the retail investors?

The answer is NO. As long as MAS only regulate the english portion of the prospectus and pricing statement, we are always at the receiving end.

Hope TKL blog can alert us of bad scam e.g. landbanking.; April 15, 2010 11:46 PM
Anonymous said...: Reference Straits Times, 16 April, page A13, heading: "No Time For Complacency, says PM"

Specifically, 2nd column from the left, 3rd paragraph from the bottom.

" a 'reservoir of trust' between the people and the Government."

There seems to be a disconnect between Straits Times and the bloggers here for this thread.

Uniquely Singapore? Your Singapore is not the same as My Singapore?

Men are from Mars, women from Venus?

Chicken and ducks talking?; April 16, 2010 8:23 AM
Anonymous said...: My ex-colleague in compliance (financial industry) used to complained about MAS sending junior staffs or greenhorns to deal with his queries instead of more senior and knowledgeable people. I wonder if MAS hires a lot of young degree holders that has no clue about what MAS is doing or simply just taking instructions from above.; April 16, 2010 11:21 AM
Anonymous said...: Anyone has the problem of being awarded by Adjudication process but the FI refuse to pay i.e. FI not contactable and not even responding to register mail.

Do advise, thanks.; April 20, 2010 4:03 PM
sureesh40 said...: Hi
Like to seek advice, I invested
60K in PN6. The bank I bought from wants to compensate me 12K which is only 20%. Should I accept their offer or go for adjudication.
What is the chance of success at adjudication. I agreed to the 50K limit at Fidrec; August 19, 2010 4:17 PM
Unknown said...: Hi Sureesh40,

My mother who is Chinese educated was offered 60% of the $10K placed in. Do you have an email which i can contact you?; August 22, 2010 6:14 PM
sureesh40 said...: Hi mpx

Sorry for the late reply. I had problems with my google account. My e-mail is sureesh40@hotmail.com

When you said your mum was offered 60% was it the FI's offer or Fidrec's order that; August 25, 2010 10:40 AM
sureesh40 said...: Hi Mr Tan

Can you let us know the results of the survey on how people feel about the adjudication process.; August 25, 2010 4:43 PM