Tan Kin Lian's Blog: A consumer view about Fidrec

Wednesday, December 29, 2010

A consumer view about Fidrec

Mr. Tan
Just like the first comment on your blog, both FIDREC and the adjudicator are on the FI's side, be it the Bank or the Brokerage.

FIDREC's expenses in staff and office are financed by annual contributions from the FIs, so this body knows exactly who is their boss,honestly the adjudication stage is just a show, the process and outcome is just the same.

We could only show sympathy for the victims in private, no use bringing up to MAS, all of them work in collaboration for show only.

We put too much trust in this Govt, who let us down in times of need. One investor said that the adjudicator finally said during hearing, that investor should put the entire blame on MAS who allowed the derivatives to be sold to retail investors, not fault the FI who sold them, the FI is only the go between agent.

With such feedback, would it be much help to bring up to MAS attention about the adjudication's process. The buck is being pushed around in a merry go round. Just swallow the humiliation, and move on.
Consumer

6 comments:

AB said...: I have written this comment already in some other post here.

For my case, Fidrec ruling is based entirely on legalities. Say I am educated, able to read and understand the prospectus and the risks written, willingly sign on the dotted line of documents that spell out all the terms and risk, etc. Award zero.

Fidrec is on the side of the big bullies. Its obvious from the day the old thing said the victims go in with eyes opened.

The only way is to vote out papaya that only take care of the top elites and foreigners, and do not take care of the ordinary citizens.

KNN; December 29, 2010 9:41 PM
Recruit Ong said...: the pap govt sets up all kinds of "independent" panels, committees, and what not e.g. PTA, CASE (they hijacked this) etc etc to regulate, arbitrate or watever they wish to call it but basically is all wayang, all form and no substance one.

end of day is still the same, they tire u and your resources out and u are then forced to drop the case. the only way for things to change is to vote the pap and their cronies out.; December 30, 2010 11:02 AM
Concerned said...: That is correct. MAS should bear the full responsibility for allowing the FLs to selll those highly complicated and complex derivatives, (even those highly trained economic professors around the world don't understand) to working adult who knows nothing about finance. Worse still, those RMs said those products are the equivalent of a fixed deposit with higher interest rate to compensate the longer tenure.; December 30, 2010 11:46 AM
AC said...: There were so much evidence of wrongdoings found by MAS on FIs in their Investigation report and yet, these FIs seemed to have gotton away lightly. If have time, take a look - http://www.mas.gov.sg/resource/news_room/press_releases/2009/INVESTIGATION%20REPORT_7%20JUL%2009.pdf.
If FIDREC were to use the MAS investigation report as the evidence for adjudication, I think FIs would have lost flat. Don't even need to waste time hearing cases on a case by case basis. If FIDREC wants to be legalistic about it, they should use the evidences highlighted in the MAS report to challenge the FIs, and not simply point their fingers at the consumer - that you are educated enough to understand what's going on, you have eyes to see etc.

Our Govt has always been sensitive about conflict of interest in any dealing, but I am disappointed that they allow FIDREC, which is funded by FIs, to be the mediator in financial disputes. This can go down history as the biggest ever boo-boo by our government.; December 30, 2010 12:57 PM
Unknown said...: Well said. Who were the bunch of people managing MAS then ? They don't give a damn.; December 30, 2010 1:35 PM
Unknown said...: You have to sign to invest in any product and Fidrec holds you responsible but DBS breaks rules published in the Prospectus and Pricing Statement lodged with MAS and Fidrec and MAS say nothing. These are legal documents. What a shame!; December 31, 2010 7:41 AM