There will be an Indian Cultural event at Hong Lim park tomorrow at the same time as my speech. The tents occupy most of the open spaces. I like to ask those who read this message to skip the meeting tomorrow. I will post my speech here.
There is space in a corner of the park for a small crowd For those who miss this announcement and turn up at Hong Lim park tomorrow, I will distribute a hard copy of my speech on the spot.
Friday, November 28, 2008
The Standard : Legco first on Lehman fizzles out
Standard, The (Hong Kong) - Wednesday, November 26, 2008
Author: Diana Lee
The first open meeting of the Legislative Council subcommittee probing the Lehman minibonds saga got bogged down in party bickering yesterday and failed to reach agreement on confidentiality.
Civic Party legislator Ronny Tong Ka-wah said meetings should be transparent and documents made available unless witnesses request confidentiality. This demand must be justified with evidence submitted to subcommittee members and the legal adviser, he said.
``In principle we should not accept a general request. I would not accept, for example, a bank claiming each and every document is confidential,'' Tong said.
However Democratic Alliance for the Betterment and Progress of Hong Kong legislator Chan Kam-lam disagreed, saying mutual respect and mutual trust should exist between witnesses and subcommittee members.
``Even individual people have their privacy, so why not companies?'' Chan asked.
The Democratic Party's James To Kun-sun said mutual trust has nothing to do with the probe.
``We are here to find out the truth,'' To argued. ``What if the banks claim the staff training manual [for selling structured financial products] is classified material? ``What's the point of a public hearing if everything could be treated as classified so easily? We talk about mutual trust among legislators, not between witnesses and legislators.'' Lawmakers also failed to compromise on whether legislators should sign a confidentiality agreement.
The pan-democrats said they did not object but raised doubts about the effect such a pledge would have on lawmakers.
Philip Wong Yu-hong, subcommittee vice chairman and a commercial sector lawmaker, said ensuring lawmakers will keep the confidential submissions confidential is more important. Classifying what is confidential is another issue.
The Legco Secretariat will host a briefing on December 4 to inform lawmakers on matters they should know about the Lehman probe, including the general principles of what information should be treated as classified and confidential.
Meanwhile, Emily Lau Wai-hing of the Frontier, again failed to persuade members to support the pan-democrats' demand for a smaller subcommittee, which currently has 24 members.
Subcommittee chairman Raymond Ho Chung-tai said he hoped the discussion on the subcommittee's size is finally over and that members may unite to face the challenges ahead.
When the subcommittee meets will be decided on Friday. It is expected to host meetings every Tuesday and Friday morning starting early next year.
Author: Diana Lee
The first open meeting of the Legislative Council subcommittee probing the Lehman minibonds saga got bogged down in party bickering yesterday and failed to reach agreement on confidentiality.
Civic Party legislator Ronny Tong Ka-wah said meetings should be transparent and documents made available unless witnesses request confidentiality. This demand must be justified with evidence submitted to subcommittee members and the legal adviser, he said.
``In principle we should not accept a general request. I would not accept, for example, a bank claiming each and every document is confidential,'' Tong said.
However Democratic Alliance for the Betterment and Progress of Hong Kong legislator Chan Kam-lam disagreed, saying mutual respect and mutual trust should exist between witnesses and subcommittee members.
``Even individual people have their privacy, so why not companies?'' Chan asked.
The Democratic Party's James To Kun-sun said mutual trust has nothing to do with the probe.
``We are here to find out the truth,'' To argued. ``What if the banks claim the staff training manual [for selling structured financial products] is classified material? ``What's the point of a public hearing if everything could be treated as classified so easily? We talk about mutual trust among legislators, not between witnesses and legislators.'' Lawmakers also failed to compromise on whether legislators should sign a confidentiality agreement.
The pan-democrats said they did not object but raised doubts about the effect such a pledge would have on lawmakers.
Philip Wong Yu-hong, subcommittee vice chairman and a commercial sector lawmaker, said ensuring lawmakers will keep the confidential submissions confidential is more important. Classifying what is confidential is another issue.
The Legco Secretariat will host a briefing on December 4 to inform lawmakers on matters they should know about the Lehman probe, including the general principles of what information should be treated as classified and confidential.
Meanwhile, Emily Lau Wai-hing of the Frontier, again failed to persuade members to support the pan-democrats' demand for a smaller subcommittee, which currently has 24 members.
Subcommittee chairman Raymond Ho Chung-tai said he hoped the discussion on the subcommittee's size is finally over and that members may unite to face the challenges ahead.
When the subcommittee meets will be decided on Friday. It is expected to host meetings every Tuesday and Friday morning starting early next year.
To each his own
TO EACH HIS OWN
Author Unknown
Nov 27 2008
I cannot change the way I am,
I never really try,
God made me different and unique,
I never ask him why.
If I appear peculiar,
There's nothing I can do,
You must accept me as I am,
As I've accepted you.
God made a casting of each life,
Then threw the mold away,
Each child is different from the rest,
Unlike as night from day.
So often we will criticize,
The things that others do,
But, do you know, they do not think,
The same as me and you.
So God in all his wisdom,
Who knows us all by name,
He didn't want us to be bored,
That's why we're not the same
Author Unknown
Nov 27 2008
I cannot change the way I am,
I never really try,
God made me different and unique,
I never ask him why.
If I appear peculiar,
There's nothing I can do,
You must accept me as I am,
As I've accepted you.
God made a casting of each life,
Then threw the mold away,
Each child is different from the rest,
Unlike as night from day.
So often we will criticize,
The things that others do,
But, do you know, they do not think,
The same as me and you.
So God in all his wisdom,
Who knows us all by name,
He didn't want us to be bored,
That's why we're not the same
The Online Citizen interview an investor
Listen to this interview of the experience of an investor in the minibonds:
http://theonlinecitizen.com/2008/11/toc-exclusive-interview-with-investor-who-lost-150000/#comments
The Online Citizen wishes to have other investors to come forward to share their experience. I hope that more can come forward. We need the authority to hear about how they have been misled into the wrong investment that cause a total loss of their savings.
If you are willing to be interviewed, send an e-mail to kinlian@gmail.com.
http://theonlinecitizen.com/2008/11/toc-exclusive-interview-with-investor-who-lost-150000/#comments
The Online Citizen wishes to have other investors to come forward to share their experience. I hope that more can come forward. We need the authority to hear about how they have been misled into the wrong investment that cause a total loss of their savings.
If you are willing to be interviewed, send an e-mail to kinlian@gmail.com.
Thursday, November 27, 2008
Speaker's Corner 5 p.m. Sat 29 Nov
There will be a meeting of investors of the credit linked notes at Speaker's Corner at 5 p.m. on Sat 29 Nov.
Agenda
1. See your MP
2. Misrepresenation in prospectus
3. Ask for information in writing
4. Experience with FIDREC
5. Mental health concerns
6. Class action
7. Special meeting on Sat 6 Dec
Agenda
1. See your MP
2. Misrepresenation in prospectus
3. Ask for information in writing
4. Experience with FIDREC
5. Mental health concerns
6. Class action
7. Special meeting on Sat 6 Dec
Bonus is likely to remain low
I organised a collective protest against the bonus cut made by NTUC Income earlier this year. I reached a settlement as follows:
http://tankinlian.blogspot.com/search?q=collective+protest+settlement
I promised policyholders that I would monitor the situation and give an update.
Recently, I decided to surrender my Living policy, which was affected by the bonus cut. I received a surrender value that included the special bonus to compensate for the bonus cut. In this case, I was slightly better off (with the special bonus included).
During the past six months, there has been turmoil in the financial market resulting in a large markdown of asset prices. I do not know whether the "compensating" special bonus will be withdrawn or reduced in the next few years of the global financial crisis.
Earlier, I wanted to press for the bonus cuts in past years to be restored due to the good financial results up to 2007. With the large drop in asset price in 2008, it will now be difficult to press for this measure. It is also likely that future bonus will remain at a low level, until after the global economy has recovered.
On the bright side, the cash value of a life insurance policy remain largely protection (although the yield is low) during a bad period. It does not suffer the capital loss that comes from shares and other investments.
http://tankinlian.blogspot.com/search?q=collective+protest+settlement
I promised policyholders that I would monitor the situation and give an update.
Recently, I decided to surrender my Living policy, which was affected by the bonus cut. I received a surrender value that included the special bonus to compensate for the bonus cut. In this case, I was slightly better off (with the special bonus included).
During the past six months, there has been turmoil in the financial market resulting in a large markdown of asset prices. I do not know whether the "compensating" special bonus will be withdrawn or reduced in the next few years of the global financial crisis.
Earlier, I wanted to press for the bonus cuts in past years to be restored due to the good financial results up to 2007. With the large drop in asset price in 2008, it will now be difficult to press for this measure. It is also likely that future bonus will remain at a low level, until after the global economy has recovered.
On the bright side, the cash value of a life insurance policy remain largely protection (although the yield is low) during a bad period. It does not suffer the capital loss that comes from shares and other investments.
An apology to Chee Soon Juan and his sister
I refer to this posting:
http://tankinlian.blogspot.com/2008/10/protest-outside-dbs-headquarters.html
The posting in my blog was written by somebody else in CNA forum. I reproduced the mesaage in my blog but overlooked to mention the author. It gave the wrong impression that the message was written by me.
I wish to apologise to Chee Soon Juan and his sister for the damage that is caused to them by the statement, “what many stupid and selfish politicians in Singapore have done and seek self destruction.” This statement came from the original posting (by someone else).
I do not personally share this sentiment and wish to acknowledge their personal sacrifice in fighting for what they believe in.
http://tankinlian.blogspot.com/2008/10/protest-outside-dbs-headquarters.html
The posting in my blog was written by somebody else in CNA forum. I reproduced the mesaage in my blog but overlooked to mention the author. It gave the wrong impression that the message was written by me.
I wish to apologise to Chee Soon Juan and his sister for the damage that is caused to them by the statement, “what many stupid and selfish politicians in Singapore have done and seek self destruction.” This statement came from the original posting (by someone else).
I do not personally share this sentiment and wish to acknowledge their personal sacrifice in fighting for what they believe in.
Wednesday, November 26, 2008
A sense of responsibility: Obama
http://www.channelnewsasia.com/stories/afp_world/view/392333/1/.html
WASHINGTON: President-elect Barack Obama has chastised US auto executives for being "tone deaf" for flying on corporate jets to Washington to beg for bailout money, and said he believed bank executives should forgo their end-of-year bonuses.
In the advanced excerpt of an interview to be broadcast Wednesday and released by ABC News late Tuesday, the president elect focused on responsibility.
Bank executives forgoing bonuses is "an example of taking responsibility," Obama said.
"If you are already worth tens of millions of dollars, and you are having to lay off workers, the least you can do is say, 'I'm willing to make some sacrifice as well', because I recognize that there are people who are a lot less well off, who are going through some pretty tough times ," Obama told ABC News.
As for the incident in which the heads of Ford, Chrysler and General Motors flew their private jets to Washington last week to ask Congress for bailout money, Obama said: "I thought maybe they're a little tone deaf to what's happening in America right now."
He described it as "a chronic problem, not just for the auto industry ... (but) for the captains of industry generally.
"When people are pulling down hundred million dollar bonuses on Wall Street, and taking enormous risks with other people's money, that indicates a sense that you don't have any perspective on what's happening to ordinary Americans," Obama said.
And when the "auto makers are getting paid far more than their counterparts at Toyota, or at Honda, and yet they're losing money a lot faster than Japanese auto makers are, that tells me that they're not seeing what's going on out there."
Obama said he hoped his presidency will help "usher in ... a return to an ethic of responsibility. That if you're placed in a position of power, then you've got responsibilities to your workers. You've got a responsibility to your community. Your shareholders."
He added: "And that's true ... for members of Congress, that's true for the president, that's true for cabinet members, that's true for parents.
"I want all of us to start thinking a little bit more, not just about what's good for me, but let's start thinking about what's good for our children, what's good for our country. The more we do that, the better off we're going to be," he said.
WASHINGTON: President-elect Barack Obama has chastised US auto executives for being "tone deaf" for flying on corporate jets to Washington to beg for bailout money, and said he believed bank executives should forgo their end-of-year bonuses.
In the advanced excerpt of an interview to be broadcast Wednesday and released by ABC News late Tuesday, the president elect focused on responsibility.
Bank executives forgoing bonuses is "an example of taking responsibility," Obama said.
"If you are already worth tens of millions of dollars, and you are having to lay off workers, the least you can do is say, 'I'm willing to make some sacrifice as well', because I recognize that there are people who are a lot less well off, who are going through some pretty tough times ," Obama told ABC News.
As for the incident in which the heads of Ford, Chrysler and General Motors flew their private jets to Washington last week to ask Congress for bailout money, Obama said: "I thought maybe they're a little tone deaf to what's happening in America right now."
He described it as "a chronic problem, not just for the auto industry ... (but) for the captains of industry generally.
"When people are pulling down hundred million dollar bonuses on Wall Street, and taking enormous risks with other people's money, that indicates a sense that you don't have any perspective on what's happening to ordinary Americans," Obama said.
And when the "auto makers are getting paid far more than their counterparts at Toyota, or at Honda, and yet they're losing money a lot faster than Japanese auto makers are, that tells me that they're not seeing what's going on out there."
Obama said he hoped his presidency will help "usher in ... a return to an ethic of responsibility. That if you're placed in a position of power, then you've got responsibilities to your workers. You've got a responsibility to your community. Your shareholders."
He added: "And that's true ... for members of Congress, that's true for the president, that's true for cabinet members, that's true for parents.
"I want all of us to start thinking a little bit more, not just about what's good for me, but let's start thinking about what's good for our children, what's good for our country. The more we do that, the better off we're going to be," he said.
No reply from financial institution after four weeks
Hi Mr. Tan,
I think you should bring attention to the investers that under Step 3 outlined by MAS, the financial institution is required to give a reply within 4 weeks:
http://www.mas.gov.sg/consumer/structured_products/fidrec_3_step_process.html has
I have not received a reply after 4 weeks. Why doesn't MAS take action against the FI?
REPLY
I suggest that you should lodge a complaint directly with MAS on this matter.
I think you should bring attention to the investers that under Step 3 outlined by MAS, the financial institution is required to give a reply within 4 weeks:
http://www.mas.gov.sg/consumer/structured_products/fidrec_3_step_process.html has
I have not received a reply after 4 weeks. Why doesn't MAS take action against the FI?
REPLY
I suggest that you should lodge a complaint directly with MAS on this matter.
End of Free Financial Advice
The FSA of UK (equivalent to MAS) is introducing this new measure in 2012. It will have great impact on how financial products are sold. Our approach in Singapore is modelled on the UK - so I expect that similar measures will be introduced here. It will prevent the sale of financial products that are bad for customers.
From the Telegraph in UK, 25 Nov 2008
The days of consumers getting "free" financial advice look numbered under new regulatory guidelines which are aimed at improving the way financial products are sold.
The Financial Services Authority (FSA) has outlined new guidelines that effectively outlaw commission payments, which have been seen by many consumers as a way of getting "free" advice.
The FSA has made it clear that it is concerned that these payments are used to disguise the cost of financial products, and may create bias in an adviser's recommendations.
A spokesman for the FSA said it hoped its proposals would restore consumers' trust in the financial services industry at a time when many "need real help and advice with their retirement and savings planning". The changes are due to come into force in 2012.
The regulator's review contains three key proposals. Probably the biggest change is to the way advisers are remunerated.
For the first time all advisers, whether they are independent financial advisers or sales agents, will have to declare and agree with the customer in advance exactly what the advice costs. Consumers will then have the option of paying for it in advance or opting for the cost to be taken from their savings over a period of time.
A spokesman for the FSA said: "Commission as we know it will disappear for ever. We want to sever the providers' involvement with the advisers' fees." The FSA has not ruled out banning commission completely at a later date.
Another major change is that all advisers will now have to take advanced qualifications, equivalent to the first year of a degree course, if they are offering full advice to consumers. At present 80pc of advisers do not have these qualifications.
Andrew Fisher, the chief executive of Towry Law, a firm of financial advisers, said: "This is brilliant news for consumers. The smoke and mirrors, lies and obfuscation that have been used to disguise consumer fees will be stopped.
"Individuals thought that commission meant 'free' advice but it was always paid for, either by raising product charges or by reducing the value of a consumer's investment. For the first time, any commission charge will now explicitly be linked to consumers' savings and will have to be agreed upfront."
The FSA said its framework would provide a mix of services, so "less sophisticated" investors who could not afford to pay for full advice were not excluded. Many companies are expected to offer "guided sales", where consumers are given basic financial information.
If this led to a recommendation to buy a certain product, however, the sales person would still be required to have the appropriate professional qualifications and be upfront about any product charges. The FSA said: "It must always be made clear at the outset whether consumers are paying for independent advice or a sales service."
Trevor Matthews, the president of the Chartered Insurance Institute said these proposals should "kick-start" the process "of moving to higher levels of competence and and professionalism". He added: "The biggest challenge for the long term future of this industry is to restore trust in financial services, which has been dented for too long." He said today's proposals go some way to addressing this issue.
David Elms, the chief executive of IFA Promotion, said he welcomed the proposals but was awaiting details on how they would be implemented.
He added: "We want to see the same standards applied to all advisers, whether they are recommending products from across the spectrum of providers or selling just one company's products.
"This should enable consumers to understand the choices available to them."
From the Telegraph in UK, 25 Nov 2008
The days of consumers getting "free" financial advice look numbered under new regulatory guidelines which are aimed at improving the way financial products are sold.
The Financial Services Authority (FSA) has outlined new guidelines that effectively outlaw commission payments, which have been seen by many consumers as a way of getting "free" advice.
The FSA has made it clear that it is concerned that these payments are used to disguise the cost of financial products, and may create bias in an adviser's recommendations.
A spokesman for the FSA said it hoped its proposals would restore consumers' trust in the financial services industry at a time when many "need real help and advice with their retirement and savings planning". The changes are due to come into force in 2012.
The regulator's review contains three key proposals. Probably the biggest change is to the way advisers are remunerated.
For the first time all advisers, whether they are independent financial advisers or sales agents, will have to declare and agree with the customer in advance exactly what the advice costs. Consumers will then have the option of paying for it in advance or opting for the cost to be taken from their savings over a period of time.
A spokesman for the FSA said: "Commission as we know it will disappear for ever. We want to sever the providers' involvement with the advisers' fees." The FSA has not ruled out banning commission completely at a later date.
Another major change is that all advisers will now have to take advanced qualifications, equivalent to the first year of a degree course, if they are offering full advice to consumers. At present 80pc of advisers do not have these qualifications.
Andrew Fisher, the chief executive of Towry Law, a firm of financial advisers, said: "This is brilliant news for consumers. The smoke and mirrors, lies and obfuscation that have been used to disguise consumer fees will be stopped.
"Individuals thought that commission meant 'free' advice but it was always paid for, either by raising product charges or by reducing the value of a consumer's investment. For the first time, any commission charge will now explicitly be linked to consumers' savings and will have to be agreed upfront."
The FSA said its framework would provide a mix of services, so "less sophisticated" investors who could not afford to pay for full advice were not excluded. Many companies are expected to offer "guided sales", where consumers are given basic financial information.
If this led to a recommendation to buy a certain product, however, the sales person would still be required to have the appropriate professional qualifications and be upfront about any product charges. The FSA said: "It must always be made clear at the outset whether consumers are paying for independent advice or a sales service."
Trevor Matthews, the president of the Chartered Insurance Institute said these proposals should "kick-start" the process "of moving to higher levels of competence and and professionalism". He added: "The biggest challenge for the long term future of this industry is to restore trust in financial services, which has been dented for too long." He said today's proposals go some way to addressing this issue.
David Elms, the chief executive of IFA Promotion, said he welcomed the proposals but was awaiting details on how they would be implemented.
He added: "We want to see the same standards applied to all advisers, whether they are recommending products from across the spectrum of providers or selling just one company's products.
"This should enable consumers to understand the choices available to them."
Singapore Dance Theatre performs Nutcracker
Dear Friend,
Singapore Dance Theatre performs Nutcracker
I hope that, in spite of the stress from the credit linked notes, your family is still in the mood to celebrate the December holidays.
I suggest bringing your family to watch the performance of the Nutcracker by the Singapore Dance Theatre. More details (i.e. ticket price, performance dates, booking instructions) are shown in this video clip:
http://www.youtube.com/watch?v=5WSo2D-nMjY
Performing nights: Dec 12, 13, 17, 18, 19, 29.
I am the deputy chairman of the SDT. If you can support the SDT, it will be much appreciated.
Tan Kin Lian
Singapore Dance Theatre performs Nutcracker
I hope that, in spite of the stress from the credit linked notes, your family is still in the mood to celebrate the December holidays.
I suggest bringing your family to watch the performance of the Nutcracker by the Singapore Dance Theatre. More details (i.e. ticket price, performance dates, booking instructions) are shown in this video clip:
http://www.youtube.com/watch?v=5WSo2D-nMjY
Performing nights: Dec 12, 13, 17, 18, 19, 29.
I am the deputy chairman of the SDT. If you can support the SDT, it will be much appreciated.
Tan Kin Lian
Tuesday, November 25, 2008
Suggestion: how to approach legal action
Dear Mr. Tan
I would like to suggest the followings:
1) Use the online petition, one for each product (Minibond, High notes ....), to gather all investors who are in favor in legal action
2) Call a meeting for all interested investors to have a preliminary discussion and to select a committee to conduct a feasibility study.
3) The meeting will identify the scope for the feasibility study.
4) The feasibility study may include :
a) study the sales brochures/newspaper advertisements/prospectus to identify common grounds for the law suit (consult financial experts/lawyers if necessary)
b) cost and return analysis
c) study other similar class action cases (US, Hong Kong, Taiwan …)
d) identify the parties for the law suit (Lehman Brothers, FIs, MAS…)
e) identify where to file the law suit (local or US)
f) work out an action plan
Pang
REPLY
I agree with you. I shall organise the survey (using online petiton) to gather the investors willing to take action.
I would like to suggest the followings:
1) Use the online petition, one for each product (Minibond, High notes ....), to gather all investors who are in favor in legal action
2) Call a meeting for all interested investors to have a preliminary discussion and to select a committee to conduct a feasibility study.
3) The meeting will identify the scope for the feasibility study.
4) The feasibility study may include :
a) study the sales brochures/newspaper advertisements/prospectus to identify common grounds for the law suit (consult financial experts/lawyers if necessary)
b) cost and return analysis
c) study other similar class action cases (US, Hong Kong, Taiwan …)
d) identify the parties for the law suit (Lehman Brothers, FIs, MAS…)
e) identify where to file the law suit (local or US)
f) work out an action plan
Pang
REPLY
I agree with you. I shall organise the survey (using online petiton) to gather the investors willing to take action.
Singapore Kopitiam Forum
You can visit this forum to have discusison about your specific topic on credit linked notes or other investments.
http://forums.delphiforums.com/n/mb/list.asp?webtag=sunkopitiam&ctx=32768&cacheTag=x10-28
http://forums.delphiforums.com/n/mb/list.asp?webtag=sunkopitiam&ctx=32768&cacheTag=x10-28
Swiss petition for national referendum to end "corporate rip off"
We can learn from the Swiss.
Mr Minder has embarked on a truly Swiss course of action to prevent such excesses in the future. Using Switzerland's system of direct democracy, he has collected the required 100,000 signatures to hold a nationwide referendum to end, as he puts it, "the corporate rip off."
http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/7741561.stm
Investors should see their Member of Parliament
I sent another e-mail to the investors to see their Member of Parliament in groups. I know that some investors had already seen their MP and the MP asked them to see the MAS or the financial institution or argued that they should have "their eyes open".
You can see the MP again. This time, ask the MP to do the "right thing" as the leader that represents you: The MP should:
1. Ask MAS what is the outcome of petition #1, asking MAS to investigate if there were any wrong doings by the financial institutions that created and marketed these credit linked notes? did these financial institutions breach the Securities and Futures Act and the Financial Advisers Act? What is the outcome of the investigation?
2. Ask how many investors had their cases resolved at the first leve, i.e. the financial institutions? How many cases were rejected by the financial instituions or made offers that were not accepted by investors? How many cases are still "waiting for decision"? How long does it take for the financial institutions to make their decision?
3. Ask MAS how many complaints have been lodged with FIDREC. How many cases have been decided by FIDREC? How many are still pending? How long does it take for FIDREC to handle these complaints?
It is the duty of your MP to ask these questions, on your behalf, to MAS or to ask them in Parliament.
You can see the MP again. This time, ask the MP to do the "right thing" as the leader that represents you: The MP should:
1. Ask MAS what is the outcome of petition #1, asking MAS to investigate if there were any wrong doings by the financial institutions that created and marketed these credit linked notes? did these financial institutions breach the Securities and Futures Act and the Financial Advisers Act? What is the outcome of the investigation?
2. Ask how many investors had their cases resolved at the first leve, i.e. the financial institutions? How many cases were rejected by the financial instituions or made offers that were not accepted by investors? How many cases are still "waiting for decision"? How long does it take for the financial institutions to make their decision?
3. Ask MAS how many complaints have been lodged with FIDREC. How many cases have been decided by FIDREC? How many are still pending? How long does it take for FIDREC to handle these complaints?
It is the duty of your MP to ask these questions, on your behalf, to MAS or to ask them in Parliament.
Why I wanted 100,000 signatures
Discussion in www.theonlinecitizen.com
http://theonlinecitizen.com/2008/11/help-get-100000-signatures-for-tan-kin-lian-to-run/
smallvoice585 on November 25th, 2008 2.31 am
Dear Tan Kin Lian,
With due respect, sir, I believe that you are not ready for politics yet. Though you have been a PAP member for 30 years, you have not been engaged in any grassroots work in the last 20 years. You also have no experience in electioneering. You do not have a dedicated or well-organised support structure around you.
People know you to be a long-time CEO of NTUC Income for 30 years; recently as an on-line protester against insurance bonus cuts; and lately, as a champion of burnt financial product investors. I’m afraid that’s not enough to gain credibility as the next big thing in alternative politics. People need to know your stand, views and ideas on a full spectrum of political issues articulated consistently over a significant period of time. They need to see proof of a wider range of leadership qualities required in political office.
Of course, please do not misconstrue that I’m trying to discourage you.
But the 100,000 signatures that this article is calling for is in my view totally irrelevant. True politicians do not ask for a show of hands before entering the fray - they offer themselves as instruments for their beliefs and willingly submit themselves to the caprice of public opinion. That is, you do not ask for support before you commit, but you should commit first and see if you’re getting any support. If you are not ready for this uncertainty, then it speaks volumes about your dedication to your political cause.
Tan Kin Lian on November 25th, 2008 5.19 am
Hi smallvoice585
You are correct. I am not “ready” for politics …. in the conventional way. There are many examples of more capable people who came into politics during the past 20 years. Most of them did not survive. Only two did, and they have a lot of difficulty in building up their base of support.
You are also correct about the lack of a political machinery. It takes more than this political machinery for an alternative party to succeed- as it has to compete with the incumbent that has more resources beyond its own political machinery..
I wanted to take a different approach - to create awareness, to educate the public. The recent event involving the 10,700 investors of the credit linked notes show how bad things can be - that the government can just ignore the call to do the right thing and enforce the law.
If more people come forward to voice their views, it may wake up the current leaders and create the change that is desriable and good for the country. An important change is to recognise that the elected leaders should represent the people, and that a free contest is for the good of the country.
Many people said that an alternative party needs more than one person. How do you expect other people to come forward? They are not willing to sacrifice their career. They will be subject to discrimination. Maybe 100,000 signatures will change their mind.
Will my approach work? Some people think so. Others are sceptical. I am willing to give it a try. If it does not, I can go back and retire.
http://theonlinecitizen.com/2008/11/help-get-100000-signatures-for-tan-kin-lian-to-run/
smallvoice585 on November 25th, 2008 2.31 am
Dear Tan Kin Lian,
With due respect, sir, I believe that you are not ready for politics yet. Though you have been a PAP member for 30 years, you have not been engaged in any grassroots work in the last 20 years. You also have no experience in electioneering. You do not have a dedicated or well-organised support structure around you.
People know you to be a long-time CEO of NTUC Income for 30 years; recently as an on-line protester against insurance bonus cuts; and lately, as a champion of burnt financial product investors. I’m afraid that’s not enough to gain credibility as the next big thing in alternative politics. People need to know your stand, views and ideas on a full spectrum of political issues articulated consistently over a significant period of time. They need to see proof of a wider range of leadership qualities required in political office.
Of course, please do not misconstrue that I’m trying to discourage you.
But the 100,000 signatures that this article is calling for is in my view totally irrelevant. True politicians do not ask for a show of hands before entering the fray - they offer themselves as instruments for their beliefs and willingly submit themselves to the caprice of public opinion. That is, you do not ask for support before you commit, but you should commit first and see if you’re getting any support. If you are not ready for this uncertainty, then it speaks volumes about your dedication to your political cause.
Tan Kin Lian on November 25th, 2008 5.19 am
Hi smallvoice585
You are correct. I am not “ready” for politics …. in the conventional way. There are many examples of more capable people who came into politics during the past 20 years. Most of them did not survive. Only two did, and they have a lot of difficulty in building up their base of support.
You are also correct about the lack of a political machinery. It takes more than this political machinery for an alternative party to succeed- as it has to compete with the incumbent that has more resources beyond its own political machinery..
I wanted to take a different approach - to create awareness, to educate the public. The recent event involving the 10,700 investors of the credit linked notes show how bad things can be - that the government can just ignore the call to do the right thing and enforce the law.
If more people come forward to voice their views, it may wake up the current leaders and create the change that is desriable and good for the country. An important change is to recognise that the elected leaders should represent the people, and that a free contest is for the good of the country.
Many people said that an alternative party needs more than one person. How do you expect other people to come forward? They are not willing to sacrifice their career. They will be subject to discrimination. Maybe 100,000 signatures will change their mind.
Will my approach work? Some people think so. Others are sceptical. I am willing to give it a try. If it does not, I can go back and retire.
Monday, November 24, 2008
Buyer beware
Letter by Adrian Tan
Much has been said and written about “Buyer beware”, investing “with their eyes open” and “I think the prospectus says ‘you could lose all or a substantial part of your investment in the Notes’ in bold print, on page 1 or 2”.
But what if the prospectus did not disclose material facts?
The New Paper’s Doctor Money ( Larry Haverkamp) wrote on 4 November 2008 that
“A feature common to ALL linked notes is that investors never see the charges. They include:
> costs embedded in the initial pricing;
> counter-party returns in the product’s risk/return structure;
> commissions from buying and selling the options, swaps and underlying bonds;
> market-making and surrender fees; and
> annual management fees, including trailer fees kicked back to distributors.
They are deducted directly from the yield. Investors are likely to attribute the low return to market conditions rather than unseen costs.
Most importantly, unit trusts and investment-linked products (ILPs) routinely publish their charges. Linked notes never do.”
Investors in Minibonds and HN5, Jubilee and Pinnacle Notes should be asking lawyers whether the failures to disclose the above amounts to a breach of section 243 (1)(a) of the Securities & Futures Act which reads, “A prospectus for an offer of securities shall contain all the information that investors and their professional advisers would reasonably require to make an informed assessment of the matters specified in subsection (3).
And if they are, what are the remedies and against whom. As Doctor Money wrote, “The question of the day is: ‘Should non-disclosure of embedded charges invalidate linked-note sales contracts and require a refund from issuers and distributors?’”
Breaches of section 243(1)(a) are something MAS is surely investigating because we have been assured, MAS is looking, “thoroughly into every possible breach of regulation, poor internal regulation or sales practices. And it will take action where necessary”.
Adrian Tan
Much has been said and written about “Buyer beware”, investing “with their eyes open” and “I think the prospectus says ‘you could lose all or a substantial part of your investment in the Notes’ in bold print, on page 1 or 2”.
But what if the prospectus did not disclose material facts?
The New Paper’s Doctor Money ( Larry Haverkamp) wrote on 4 November 2008 that
“A feature common to ALL linked notes is that investors never see the charges. They include:
> costs embedded in the initial pricing;
> counter-party returns in the product’s risk/return structure;
> commissions from buying and selling the options, swaps and underlying bonds;
> market-making and surrender fees; and
> annual management fees, including trailer fees kicked back to distributors.
They are deducted directly from the yield. Investors are likely to attribute the low return to market conditions rather than unseen costs.
Most importantly, unit trusts and investment-linked products (ILPs) routinely publish their charges. Linked notes never do.”
Investors in Minibonds and HN5, Jubilee and Pinnacle Notes should be asking lawyers whether the failures to disclose the above amounts to a breach of section 243 (1)(a) of the Securities & Futures Act which reads, “A prospectus for an offer of securities shall contain all the information that investors and their professional advisers would reasonably require to make an informed assessment of the matters specified in subsection (3).
And if they are, what are the remedies and against whom. As Doctor Money wrote, “The question of the day is: ‘Should non-disclosure of embedded charges invalidate linked-note sales contracts and require a refund from issuers and distributors?’”
Breaches of section 243(1)(a) are something MAS is surely investigating because we have been assured, MAS is looking, “thoroughly into every possible breach of regulation, poor internal regulation or sales practices. And it will take action where necessary”.
Adrian Tan
Singapore's investments in global banks
I received a report from an analyst.
Temasek and GIC invested a total of SGD 36.7 billion in the global banks, namely Barclays, UBS, Merrill Lynch and Citigroup. The invstment in Barclays was made 18 months ago. The others was made nearly 12 months ago.
The value of these investments dropped by slightly more than 50%, or about SGD 18.5 billion. During the same period, the global stockmarket dropped by about the same extent. (Earlier, I thought that the global banks performed worse that the market, but it does not seem to be the case).
Temasek and GIC invested a total of SGD 36.7 billion in the global banks, namely Barclays, UBS, Merrill Lynch and Citigroup. The invstment in Barclays was made 18 months ago. The others was made nearly 12 months ago.
The value of these investments dropped by slightly more than 50%, or about SGD 18.5 billion. During the same period, the global stockmarket dropped by about the same extent. (Earlier, I thought that the global banks performed worse that the market, but it does not seem to be the case).
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