I REFER to last Wednesday's letter by Mr Leong Kok Ho, 'Why MAS should handle complaints'. The Monetary Authority of Singapore (MAS) understands the anxiety of many investors who have bought DBS High Notes 5, Lehman Minibond Notes and Merrill Lynch Jubilee Series 3 LinkEarner Notes.
We assure investors that we are monitoring the financial institutions' complaints handling and resolution process. Our priority is to ensure that all complaints are handled seriously and impartially without the process becoming overly legalistic.
Independent parties have been appointed to review the resolution processes of the financial institutions concerned to ensure that these processes are independent, fair and transparent.
MAS has, in consultation with the independent parties, conducted on-site visits to assess the handling and review of complaints, including observing the internal review panels in action. We are working with the independent parties to ensure that each financial institution has a robust assessment framework to identify indicators of potential mis-selling and offer fair financial settlement where appropriate. The independent parties have provided feedback to MAS on how the financial institutions have applied the framework across a sample of actual cases. We are ensuring that the assessment framework is consistent across financial institutions.
Investors who are not satisfied with the outcome of the financial institution's review of their complaints may refer their complaints to the Financial Industry Dispute Resolution Centre (FIDReC) for resolution. FIDReC is an independent body set up to provide investors with an affordable and impartial avenue to pursue claims against their financial institution. The decision of the FIDReC adjudicator is final and binding on the financial institution, but not on the investor. If the investor is not happy with the decision made at FIDReC, he is free to reject the decision and pursue his claim through other avenues.
As part of MAS' formal investigations, we are looking at financial institution-wide issues, such as the financial institutions' due diligence on structured notes, the procedures used at the point of sale, and the training and supervision of relationship managers. MAS will take firm and appropriate regulatory actions where there are breaches of law or regulations by the financial institutions or their representatives. MAS is also working with the independent parties to ensure that any potential financial institution-wide issues identified in the course of investigations have been incorporated into the assessment of individual complaints.
Angelina Fernandez
Director (Communications)
Monetary Authority of Singapore
http://www.straitstimes.com/ST%2BForum/Story/STIStory_320293.html
MAS has, in consultation with the independent parties, conducted on-site visits to assess the handling and review of complaints, including observing the internal review panels in action. We are working with the independent parties to ensure that each financial institution has a robust assessment framework to identify indicators of potential mis-selling and offer fair financial settlement where appropriate. The independent parties have provided feedback to MAS on how the financial institutions have applied the framework across a sample of actual cases. We are ensuring that the assessment framework is consistent across financial institutions.
Investors who are not satisfied with the outcome of the financial institution's review of their complaints may refer their complaints to the Financial Industry Dispute Resolution Centre (FIDReC) for resolution. FIDReC is an independent body set up to provide investors with an affordable and impartial avenue to pursue claims against their financial institution. The decision of the FIDReC adjudicator is final and binding on the financial institution, but not on the investor. If the investor is not happy with the decision made at FIDReC, he is free to reject the decision and pursue his claim through other avenues.
As part of MAS' formal investigations, we are looking at financial institution-wide issues, such as the financial institutions' due diligence on structured notes, the procedures used at the point of sale, and the training and supervision of relationship managers. MAS will take firm and appropriate regulatory actions where there are breaches of law or regulations by the financial institutions or their representatives. MAS is also working with the independent parties to ensure that any potential financial institution-wide issues identified in the course of investigations have been incorporated into the assessment of individual complaints.
Angelina Fernandez
Director (Communications)
Monetary Authority of Singapore
http://www.straitstimes.com/ST%2BForum/Story/STIStory_320293.html
6 comments:
The same old broken record keep playing the same tune.
If MAS is serious to get to the bottom of this it should personally investigate the FIs, the RMs and insurance agents and the products.
The FIs for deliberate poor internal control. It is well known that FIs, the banks nad the insurers CLOSED 2 EYES to what is going on inside so long they bring in the money.Conscience, ethics and honesty thrown out of the window.The CEOs will press for more sales at year end and how the salesemen get the sales is not important, the sales is important.
The RM and insurance agents are left to do what they like so long they can close sales.They are NOT QUALIFIED and IMCOMPETENT and dishonest and they break the FAA law in every case. Mis-selling and misrepresentation is a daily affair.MAS need not investigate they can see and hear of these malpractices anytime amywhere.
I know of agents caught for product churning, suspended for 2 months and they are back again to do the same thing.
The products these days are intended to fleece the consumers. They are complicated, hollow, no value for money, risky and they are put in market using the RMs and the agents to do the dirty works and the agents and RMs are paid dirty money to incentivise them.
If MAS is keen to clean up the industry look into these areas, enforce the laws and actively audit the all of them.
If they are sincere, they can do more. Right??
Agreed
SAME OLD RECORD.
Except it keeps repeating its insisting its NOT broken.
HA
Actually the matter is very serious, so serious that it requires the MAS MD himself to give a proper reply, not those comms directors or consumer issues etc. I don't blame these lower level people for such replies because anything else is beyond their scope and power.
The fact that the MAS MD choose not to do so implies helplessness even at his level.
Hence do not expect anything more from the MAS.
So for the FIs have rejected most of the complaints by the investors. If MAS is monitoring the matter closely, does it mean that MAS has also agreed with the decision of these FIs and agreed that there is no valid ground for the complaints from the few thousand of unhappy investors? Has MAS gone through most of such complaints with the FIs and understand adequately the claims by the investors that they were mis-sold the structured products? I am not convinced.
Wow, take so many months then a mere director of communications write a wayang letter to show that she is working. I wonder whether she is newly appointed or just woken up from her slumber. There is a Chinese saying that when the top is crooked, the bottom will not be straight. Where is the leadership? I do not even see management! @#$%!
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