Andrew Loh / Deputy Editor
Click here to visit TOC Youtube for the videos of the event. Also, see below for a South China Morning Post report on what the authorities in Hong Kong are doing.
In his fourth appearance at Speakers’ Corner in as many weeks, Mr Tan Kin Lian announced that 1,017 people have signed the petition to the Monetary Authority of Singapore (MAS). It is the fourth petition which Mr Tan has initiated to help investors who are affected by the discredited structured products.
The petition calls for “fair compensation” for investors of failed credit-linked securities who were “misled by sales reps and/or sales material” which described the products as low risk. It also calls on the MAS to restore investor trust in the financial institutions (FIs) and Singapore’s international reputation as a financial hub.
The crowd of about 500 people applauded after Mr Tan finished reading out the petition.
Mr Tan revealed that he has asked for a meeting with MAS chairman, Mr Goh Chok Tong, next week to hand him the fourth petition. He also wants to ask Mr Goh about the progress of the call that was made in the first petition which asked the Commercial Affairs Department (CAD) to look into possible mis-selling by the banks. “I’ve also asked a Member of Parliament to bring it up in Parliament,” Mr Tan told the appreciative crowd.
In his speech, the former Chief Executive of NTUC Income suggested that investors of different structured products request meetings with the top management of the FIs. Observing that the investors of DBS-sold products were “very organised”, he urged the rest to do the same. DBS investors have had meetings with the management in recent weeks.
Turning to the issue of legal action and collective action, he said that he has met with two lawyers about it. They advised that if such actions were to be taken, investors needed to start preparing now. The lawyers will be giving briefings to investors about it, Mr Tan said. However, he cautioned that legal actions should be the last thing that investors considered.
He hopes that the MAS will provide what he called “common guidelines” so that legal action can be avoided.
Guest speaker at the event, Madam Ng Ah Mun, 68, took to the stage to share her experience as an investor. She told the crowd that she had invested $100,000 in a local bank’s Star Track products in 2003. Over the five years since, she has only made a net profit of $2,928. Armed with copies of correspondence she has had with the officers of the bank and banners which she made herself, the retired teacher was furious about being “cheated”. “Don’t enter a bank,” she said, “enter at your own risk.” (Watch the video of her speech here.)
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Part One of Mr Tan Kin Lian’s speech. Click here for TOC Youtube for the rest of the videos. The transcript of Mr Tan’s speech can be found on his blog here.
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In Hong Kong… click on picture to read the South China Morning Post report.
As an ex-Independent Financial Adviser, my view is that most of my ex-colleagues does not understand what is investment about. More than 75% of them are insurance agents and the rest are part-timers and middle managers that has lost their jobs in the last downturn. I would say not more than 25% are investment savvy and understand economics. To become a Independent Financial Adviser, all you need to pass a simple exam [3 to 4 modules] consisting of multiple choice questions. Anyone with a A level qualification and average intelligence would take at most 2/3 weeks to clear all the exam and yet have absolutely no investment knowledge except on paper.
So if you are using a Financial Adviser, make sure you have done your home work on checking out their credibilities. Do not invest [in UT in lump sum or Dollar cost averaging] if you do not have at least 2 to 3 years saving for your living expenses in case you lose your job. If you cashing out during a market downturn you will definitely lose your saving and may not have the courage to invest when market start to pickup.
RMs are financial advisers and they are under lots of pressure to meet their monthly quota or they will lose their job. That is why you find turnover of RMs so frequent in most bank. They are just sales persons who can talk but only few have investment experience. My good friend has been with UBS for 30 years as a private banker who look after clients with minimum investable fund of USD 2 Millions and she confess that the same thing happen in the world of private banking.
IFA is working on a MLM [mulit-layer marketing] system of compensation system. The manager of IFA has over-riding commission on his financial advisor reps sales. So his motivation is to build large team of FARs and motivating them to sell UT and Insurance policies with highest commission to clients.
Mr. Tan is not well like by its FA in NTUC becasue NTUC agents has the lowest commission for its insurance products [just my observation] and he also started using salaried FAs to accept insurance proposal to cut commission payable to FA.
In this Minibond saga, I think MAS should bear some responsibilities because:
1. it allows such complex financially risky product to be sold directly to retailed investors [most developed countries do not have such products sold to retailed investors in $5k lot]
2. The brochure of these structure product is down right misleading and they are approved by MAS.
3. It did not set up a easy-to-understand Financial Product Risk Evaluating system for investors. If we have a A-B-C-D-E ranking system on the risks of financial products sold in singapore, chances of mis-selling financial product to investors would be less wide-spread.
50) sarek_home on November 3rd, 2008 10.09 am
As you said, there is 1 minute lag. With ‘live’ content moderation, any defamatory remarks can be censored before its released to the net. Ok, maybe its a-few-minutes-delayed ‘live’ telecast. Better late than never ;)
We all heard about the real fear that exists deep down inside everyone.
We all heard about the Singaporeans who do not know english and IT and the internet.
Well, I was at Hong Lim Park for several weekends. I saw 1st hand what the Fear really was. I saw rich (used to be) singaporeans who are complete illiterates in English and Internet browsing. Many never used the mouse.
Fear was more than just about loosing money.
Remember guys, 10 000 pocket burnt directly. Only 10% of these petitioned. The Facts speaks for itself.
I used to scratch my head why even with the shocking turn-out in LTK rallies, they never win a GRC.
I used to wonder….i used to ….
HK vs SG : Same mini bon bons. Different tales. Spot the root cause.
Hi #49
If you like me to answer your question, you have to give your real name. OK?
52) mini bon bon on November 3rd, 2008 10.21 am
50) sarek_home on November 3rd, 2008 10.09 am
As you said, there is 1 minute lag. With ‘live’ content moderation, any defamatory remarks can be censored before its released to the net. Ok, maybe its a-few-minutes-delayed ‘live’ telecast. Better late than never ;)
Hi mini bon bon,
Let me clarify something here. MSM has the equipment to buffer the ‘live’ broadcast for content moderation.
The qik technology LHL demonstrated at National Day Rally does not have this “buffering” feature if I am not mistaken. It is straight from the phone to the web live.
Really, people should go to Speakers’ Corner to overcome their fear and show live support to the investors and tell PAP they care enough to be there.
We have some “confessions” from former IFA and RMs about their experience.
People like them who have conscience will eventually quit. I hope that MAS will wipe the slate clean so that ethical and people with conscience will rejoin the industry to provide real responsible advisory service to consumers.
Now that we know how RMs work for a living and they are no different from the insurance agents and IFAs out there.
Do the public ever wonder what are those titles , like MDRT, COT , or TOT, insurance agents have on their name cards? Are they marks of some achievement or competence ?
Yes they are. They are marks or evidence of how many people or how much they have cheated from their customers. They are marks of competence in the art of lying, mis-selling , misrepresentation, manipulation and ruining their customers’ lives.
You see, the various marks are determined by how much money or commission they earned. What kind of products can give high commission? They are wholelife , endowment and regular ILPs. The commission for these products usually 50%, 25%, 25% for 1st, 2nd and 3rd year and 10-12% for next 6 years generally.
Is there any wonder why they invariably propose these products and not other more efficient low cost products to you? The reason is obvious.They are specialists in these products. They are so well trained in untruths and lies, non disclosure and emotional manipulative skills that they can lure a bird down from a tree. They only know and sell these products to plan their future and not your future.
What is wrong with these products?
They CANNOT give you adequate protection and saving. Both these 2 elements are diluted so much they are neither both. Why? cost is the problem; too much paid to agents and the companies’ profit and operating cost. As a result consumers pay too much for so little in return. Always consumers can’t afford to have adequate coverage and left with a big risk still unaddressed. Not only that, there are other risks need to be taken care of. Where got money after buying whole life? Agents don’t care. Agents advise to do review(to make customers buy another WL) next time when customers’ salaries increase.. Meantime consumers make sure nothing happens because they are under insured.
Why do people buy insurance?
Consumers must understand the real reason and
insurance is protection, of course. But do agents care whether you are protected with enough insurance to leave to your loved ones. No, they only care for their own and to qualify for those marks.When agents say their proudest moment is when they deliver a cheque to the deceased’ spouse but the cheque is only enough to pay for the funeral expenses and it is deceased’s spouse saddest moment especailly one with a few young children
These people are despicable. I wonder why MAS is not checking on them for breaching the laws. They are breaking the law daily and it is so rampant. At the mrt , malls and roadside they solicit like prostitutes from passers by. How could they close a case with such a short spiel. The financial analysis required by the law takes at a few hours before they can identify a solution, the product.Isn’t this mis-selling? Isn’t this cheating?
Churning and twisting are also rampant among the insurance agents before but now the IFAs are catching up. They have cash back schemes, to ingenious switching scams to drain the customers’. For UTs some customers pay charges as high as 10%, from sales charge of 7%(non CPF) to 3% swiching fee, trailer fee and management fee to portfolio management fee. The IFAs have all kind of fees to incentivise the FAs. No wonder many insurance agents join FA firms because of this reason.
So you see where the consumers stand if there is no control from MAS.
Having said, as Daniel said that if MAS always goes to toilet or for coffee break and leave the FIs and their representatives to do as they like it is as good as having no MAS. or referee for the financial industry. Right?
money or CPF.
In that regard, could I then seek your assistance in giving your views, or opinion, on another similar issue. This issue involves a retirement scheme which was introduced in 1997 by a financial institution to help “asset rich but cash poor” retirees . It was claimed to provide a monthly cash payout to the retiree – Mr. would like to know more (#32)
This is known as an Equity Release Scheme.
http://en.wikipedia.org/wiki/Equity_release
54) sarek_home on November 3rd, 2008 11.20 am
……Really, people should go to Speakers’ Corner to overcome their fear and show live support to the investors and tell PAP they care enough to be there.
……
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Based on my personal assessment, many many do not care to attend. Even the 9500+ affected never turn up at HLP. Did I just lied? I think most of you know better. Even when their own personal pocket is directly hurt.
PERIOD.
Hi #32
The finance scheme that you referred to is probably a reverse mortgage. It was probably marketing by NTUC Income during the time that I was in charge. Can you send an e-mail to kinlian@gmail.com. I shall be happy to explain how the reverse mortgage work. It was designed to be transparent and fair to the customer.
I cannot recall the specific details of this case, but I am sure that the senior manager of NTUC Income who handled this matter could shed some light on this matter. I assume that you are related to the person who took the reverse mortgage.
3/11/08
In 1997 Asia Financial Crisis, I lost millions and I fought bankers who lied up in their sworned affidavits, up to Singapore Supreme Court.This round, the situation is totally difference and is a Global Financial Crisis and beyond our total contral. These 10,000 investors mainly Uncles and Aunties made their decision before parting their monies, many life savings and knew what they went in for and allowed GREED overcome them. The bank officers who sold them these Lehman bonds are just doing their job which I believed professional and thoroughly unlike those I dealt before (top management who really lied in their sworned affidavits and I fought them up to Singapore Supremee Court and I lost ok).
Regards
Andrew Chuah
The answer is that no one knows who who these 9500+ people are.
If they are the people who expect other investors to do the jobs while they sit back and wait, they will be the most stupid people because only in great number can it produce enough strength to pull through this debacle. Strength is unity and it is time these 9500+ to rose up and united, and only by this number that international press will help create frightening negative publicity on DBS, thus pressurize DBS to the right thing. I’m not confident that these investors will win in this lawsuit especially in this country where kangaroo run amok but still kangaroo is afraid of big number.
Therefore, I urge those 9500+ whether they are disabled, they are sick, dying, bochap, rich, wealthy, stupid, smart, clever to gather for next meeting in Hong Lim Park because if they don’t, their chance of getting their money back will be very slim.
59) Daniel on November 3rd, 2008 3.19 pm
There is more implication than just loosing their hard earned money due to possible misselling.
This solid fact of poor turn out is an absolute prove that there is a DEEP DEEP Seated problem that lies within the hearts and minds of the 90%.
TOC has done its best to educate. The young and IT literate and english iterate may have accessed TOC education. Sadly, many will not know or want to sign as they never have seen what an internet browser is and what it can do.
IT education need to reach out to every singaporean especially the non-english educated and the disabled and lower IQ and techno-fobic as well as people who give up as they think too ‘smartly’ – that they can never win against the big boys. A self-realised prophecy.
Now, psychologists and socialogists as well and politicians should have a solid case study example on the mentality of the many singaporeans.
regards
Pathetically Apathetic of the Extreme type R
#59 “The bank officers who sold them these Lehman bonds are just doing their job which I believed professional and thoroughly ……”
You still insisted these officers who conned the oldies, the cancer patients, the handicapped etc for sales commission are professional & thorough?
I dare to said you invested & lost millions not for the sake of a pittance 2-3% more than fixed deposts. So who is more greedy?
These products were sold internationally. And taking a simple international comparison, the current FD rate in Singapore is ridiculously low. In the 1980′s, the savings interest rate was as “high” 3.5%!
I will say is again: getting a 5% return p.a. can hardly be a justification exposure to a 100% loss risk. How on earth could someone categorize a 5% p.a. return as greedy is beyond my comprehension.
If it is the case of mis-selling then the bank must pay up. For those who jump the gun to criticize the “cheated” victims of the bank mis-selling the investment accounts as being greedy, please put yourself in their shoe by understand the following analogies:
1. You ordered Ba Cho Mee mai dee gua, then stall uncle gave you no dee gua and extra meat ball. That is a correct expectation and you get a bonus. If you expect uncle to give you extra mee on top of that then it is greed.
2. Same Ba Cho Mee mai dee gua ordered with the stall menu board reading “Ba Cho Mee stall”, but you get mee siam mai hum in return………
THIS IS DEFINITELY MIS-SELLING!!!
MMSMPMMC, I agree that a full investigation should be made to confirm there is misselling based on the statements from all investors.
Some other people would try to fool or distract the viewers by ignoring this possibility and use sweeping statements like oh, you signed the contract that is it lor!
This is the tricks many are using in many publications (cannot be too blunt). They will use words and statements to say something that is not entirely wrong and will not fairly say that negative things like bad news. The sweeping statement gives half truth, ignoring the other truths. Students nowadays should be smart enough to read between the lines and understand this trap when reading publications.
Another example , half truth : demonstrations occured in xyz country. blood all over. violence and destructions. BUT!! what about this missing truth : blood was caused by an accident not related to the demonstration which was peaceful and violence was for short while due to unrelated incident of 2 drunk men fighting with each other? they also caused some destructions as they throw stones at the shops.
>>> in the above hypothetical scenario, the initial report was not a lie. It was a half truth. The other half truth is missing. I urge all students to demand the full picture in whatever you read , for examper, in your text books. cannot say too bluntly. ;) but you students smarter than me right? should get my point. ;)
When all demand the same, CHANGE will come.
on 9) Andrew Chuah on November 2nd, 2008 2.22 pm
“These Banks and their officesrs who had sold the Lehman bonds to the 100,000 investors, had done their job professionally and explained thoroughly………”
Daear Mr Andrew Chuah
Have you ever talked to those sales representative or RM with desperate for quota before? They will not tell you the risk you have to take and jsut keep on mentioning abt the ~5% of the intereste…
If these banks were really very “Professionally” and explained thoroughly than porbably the retiree should not have involed in this incident as they are very conservative type of investors like my parent do. They wouldn’t have to take this ~5% interest and gamble for their entire saving with FI.
To All who oppose the good work done at Hong Lim Park,
I would like to offer a favourite phrase used by our Ministers:
DO NOT POLITICIZE THE ISSUE!
(…when they don’t want to answer certain things or give a direct reply.)
And I wish for our government and banks to have a good heart and start re-connecting to the ordinary man on the street.
Jim.
Where is the Chairman of MAS ? Eco-city Tianjin ? Still in Davos’ Tianjin ? Please say and do something more to help affected citizens.
“Some other people would try to fool or distract the viewers by ignoring this possibility and use sweeping statements like oh, you signed the contract that is it lor!”
What is worse is that such narrow thought and words are perpetuated by the leaders who hog the limelight as headline in ShittyTimes. Surely we remember what Pinkish Clown and Woody Pecker thoughtlessly implying CAVEAT EMPTOR as the issue when the case first blown up. The real issue is about mis-selling and mis-representation, not Caveat Emptor. Our leaders are happily leading the way towards “mis-selling and mis-represent” the main issue themselves. Anyway, I am not surprised as these leaders give a conspicuous impression of wiggling the out of way of responsibility and accountability since both are “indirectly” responsible for the saga (PM (prior to Woody) and Woody manages MAS)
Contrast those message from Hong Kong government.
Look at how things are conveniently pushed.
Read the message
“http://www.mas.gov.sg/news_room/statements/2002/Address_by_DPM_at_MAS_Staff_Seminar_2002__29_Oct_2002.html”
Address by Deputy Prime Minister Lee Hsien Loong,
Chairman, MAS
At MAS Staff Seminar
29 October 2002
“Market Discipline and Caveat Emptor
22. Our efforts to promote market discipline and a caveat emptor regime have focussed on enhancing the amount, quality and timeliness of information disclosed by institutions. We have shifted from a merit-based supervisory approach to a disclosure-based approach that emphasises market discipline to incentivise financial institutions to conduct their business in a sound, efficient, and professional manner. The local banks in particular have significantly improved their disclosure practices.
23. We must continue to update our disclosure standards in line with industry developments and international best practice. Furthermore, the mindset change is not yet complete. The public still expects to be protected from downside risks, for example when playing the stock market, but more so when depositing their money in banks. Hence one major motivation for introducing deposit insurance is to change this mindset, and get people to understand that only a limited first tranche of their deposits with a bank is protected should the bank run into trouble.
24. But disclosure by itself is not enough. It must be accompanied by investor education. Investors have to understand and use the information provided to them. They must learn to make sense of this information and use it to look after their own interests. We also need a pool of knowledgeable analysts and journalists who will shine the spotlight on any obscure fine print that the lay investor fails to notice. A more informed and sophisticated investor base will reinforce market discipline and form the basis for a more vibrant and mature financial sector. In all these respects, we have a long way to go.
25. Market discipline also requires an effective enforcement regime. To preserve investor confidence, penalties for transgressions must be swift and appropriate. MAS now has the power to investigate and bring a court action for market misconduct under the new civil penalty regime. This will complement the existing criminal penalty regime administered by CAD.”
Andrew Chuah,
Are you the same person as T ? Your predicament sounds similarly to T so I suspect that you are T. Anyway, from you hve written, you sound very bitter having lost millions over case perhaps due to kangaroo court. Our kangaroos are well-known for pro-business and will protect the business interest, be it MNC, etc at expense of citizen (That is what happen when you have pathetic demcracy and human right). Still, you cannot veil your bitterness and anger over your loss on these innocent investors. Most of these investors are like you when investing thinking that the so-called world-class bank system, especially a national bank, is partial, trustable and just, little did they realize in this debacle that they are living in a make-believe world created by the expensive clowns. I surmise that some investors will probably end up like you, with bitterness and regret over the trust of Singapore system.
As an ex RM and insurance agent, I am all for a basic salary and small commission. To pay hefty commission on products sold gives more room for an agent to be unethical. In fact, many small third party financial firms have begin to stay giving basic pay for their agents and a small commission for any sales done. PRU and Income all have such schemes on going but sad to say, many agents opt for full commisison schemes as it meant they can earn the sky-the-limit income.
It is not surprising to see agents earned six figures salaries on average and for some top-notch TOT (Top of the Table) agents to earn seven figure salaries annually. A MDRT (Milliond dollar round table) agent earned around $50,000 a year depending on commission revenue and some MDRT agents even earned more than $50,000 due to their renewal income i.e. income incurred from previous years of commission earned. If you are an MDRT agent continuously for a few years, income of between $75,000 to $100,000 is common.
I am not saying all agents and RMs are unethical in their selling. I have seen many perform their jobs above board and within the law. Of course, in any trade, there will be bad sheep in the family. Companies and MAS have come down hard on unethical selling and some were disciplined or banned totally from mis selling malpractices.
I believe for banks’ RMs, their targetting of the vulnerable group who simply prefer to pack their money in safer instrument in FD should be discouraged. They do not have the risk appetite for any unit trust let alone such high risk product as minibonds. Some may even say that this money is for their final funeral expenses.
AS Singapore progresses, let us learn a lesson here and I am sure that MAS will clear the cob webs like they have do all along. They have all along allow banks and FIs to operate freely as that is the hall mark of any open economy concept. This time round, I am sure they will interfere, as it concerns alot of the public money.
i am a treasury advisor in a bank, supporting a team of ‘experienced’ RMs. Experienced, because they had worked for a no. of years as one. Honestly, do I think the RMs are as smart as you thought…?
I would think 80% of them would not understand the mechanism behind a minibond. Even more won’t not be able to explain the technicalities in mandarin to an old heartlander retiree.
As what they say, do not buy any products from RMs at month-end. Those are periods whereby anything that can be sold will be sold to meet their quota, or to achieve certain landmark for which the commission payout is much higher.
You see young RMs driving fancy sports car, I do not think they deserve all these. The compensation plan is skewed, very skewed. Every month there is an award ceremony celebrating the top salesmen. And really, clients under them are probably the worst off given the high ‘churn-rate’ to achieve these top sales.
Alas that said, I feel like a partner-in-crime. But I only advise, not into the sales. That is my consolation and of course, I do not have a big paycheck hence. At least i am at peace.
Hi Daniel,
Thanks for your posting #68
I wish to quote the following:
25. Market discipline also requires an effective enforcement regime. To preserve investor confidence, penalties for transgressions must be swift and appropriate. MAS now has the power to investigate and bring a court action for market misconduct under the new civil penalty regime. This will complement the existing criminal penalty regime administered by CAD.”
In the first Petition signed by 983 investors, there was a call for MAS or CAD to investigate into any wrong doing by the financial institutions that created or marketed the product. So far, there is no news on this matter.
I hope that they will “investigate and bring a court action for market misconduct”. This is so obvious already.
Hi Daniel-I am not T.I lost S$30million plus in 1997 Asia Financial Crisis (bulk in Foreign Deposits pledged for my banking facilities with 5 Banks in Singapore).The bank officers who sold these 10,000 investors mainly Uncles & Aunties are taught to do their jobs and I believe that they had done it professionally, unlike those top bankers I dealt with and I fought them up to Singapore Supreme Court which I lost besides huge legal fees.These 10,000 investors mainly Uncles & Aunties must also shoulder the blame and blame themselves for being GREEDY.I am fully aware that our Singapore Legal System is much better than our neighbours which I had my fair share fighting in their courts where judges and my lawyers were bribed (we don’t have such things in Singapore which we can be proud of,foreigners are using our Singapore Legal System to get judgement and then implement in these countries-I should had done this in 1997 but I did not expect these situations ie judges and my lawyers were bribed)
Regards
Andrew Chuah
I am a retiree and had my fair share of financial losses from 1997( massive losses in value of MRs,unit trusts, etc); there was no recourse whatever attempts were made and I decided then never to walk into the banks again.
I am happy to see the present help being made by citizens to citizens – whatever the outcome. Now at least, the feeling is that you are not alone. When you are minoritility affected, you are expected to suffer in silence. Look at other issues like the UNSWAsia campus sudden closure- nobody would want to take responsibilty for the affected students. Look at the faulty cash cards. Look at the seat belt issue for student transport. Look at the occurence of dog attack human incident even when tipped off, and many more and as an old man, I am tired of bringing them up.
As an older generation citizen, I am used to be “stoic”. But the feeling is that the policy makers are quick to claim credit through the local papers but very slow to try to solve real problems when they surface. Perhaps it is the case of safeguarding their rice bowls – in present days, golden rice bowls indeed, and golden parachutes with jobs waiting even in retirement if one is well guarded through.
I wish the younger generation well and hope that you will build a better Singapore for to-morrow with TOC’s initiatives.
I am happy to see the present help being made by citizens to citizens – whatever the outcome. Now at least, the feeling is that you are not alone. When you are minoritility affected, you are expected to suffer in silence. Look at other issues like the UNSWAsia campus sudden closure- nobody would want to take responsibilty for the affected students. – Stoic Retiree
Welcome, Community Spirit :D
Many other nations’ authorities has successfully help their residents to demand for compensation, ours choose to quiet n choose not to admit their negligence on allowing this US investment bank scam to dug deep into our citizen’s pocket.. this is one part that I do not understand.
If you had done some research, US banks already knew that some of their asset are sitting at aloss by early 2006 which marks the end of the US housing boom. However, these unethical suckers choose to artificially prolong these boom by transfering these asset from their balance sheets to an empty shell company, These is what Lehman had done by setting up “MInibond Ltd’. ( The fact that they name it with the word “bond” already aims to misrepresent). These subprime toxic assets are then split up according to “priorities” in uncovering their loss in an event if the asset really drops in value , which US banks already would eventually happen when they design this. These split out asset( CDO) are then packaged with other similar products given a rating and sell to other banks and their consumers, thereby diversifying their risk and loss.
With prolonged low interest rates and minimium regulation on the financial system in the US, the Sgp government, FIs, RMs and investors alike are all being fooled by the US investment banks. The investors here are not unreasonable ppl, they just wants the pain to be shared and the admirable Mr Tan is doing his utmost to help them. It is unfair for the investors to bear all the consequences as they are naturally the most vulnerable ones here.
I strongly feel the government has to do something right. We do not want olympic medals , F1 race or some “windmills” in the city if we cant even protect our fellow citizens. These are like terrorist acts but shipped directly from the US. If nothing has been done by the authorities , I think sgpreans should remembered this for a long time.
Hi Donaldson Tan
Good short posting, as Singaporeans we can use the Balot box to exercise our rights for changes in the coming General Election like our Malaysian brothers up north who voted in the Pakatan Rakyat with 83 seats in the Malaysian Parliament and 5 state goverments ie Kelantan, Kedah, Penang, Ipoh and Selangor. We Singaporeans are not stupid, blind or uneducated and bulk of us are Middle Class with education-70% and we only need a good,matured and constructive Oppositions who are equal and better than the PAP.
Regards
Andrew Chuah
Is there a law or regulation on who not to sell the mini bonds to?
When selling, don’t the RMs know that there are many who do not know the risks of such mini bonds?
Are RMs happy when uneducated investors buy from them?
For Complex Financial products , I believe there should be regulations to prevent RMs from selling to the uneducated, if it does not yet exist.
For now, if there is misselling, the contract should be partially void and 50% returned to investors. And if there is some kind of wrong doing, why limit to the uneducated? Why should there be discrimination to educated ones?
Wrong is wrong, if it is found to be so.
To be fair, I believe investors also should take half the responsibility and be glad to accept 50% refund.
I just have on thing to say to Andrew Chuah and dudboi (I’m not sure if its already said cause i didn’t read all replies)
To all who believe that DBS had mis-sold in HK but is too ethical to missell its products here, do you really think that its procedures are that different in these two countries?
My mum was offerred the High Notes when she wanted to create a FD for me on my 21st birthday. Her RM (who obviously knows how risk-adverse she is after handling her for over 10years) tried to push HN5 as a higher interest alternative to normal FDs.
And the whole time before I opened my mouth he was saying that there was a risk that the interest rate might be lower than 5% (or whatever that number is). Yes obviously I know that the number they gave is the highest. And so, he did not even say that we could lose our principal (even part of it).
Unfortunately (for him not my mother) I study Finance, and hence I know its not that simple. So he said its a product of 6 companies and hence at most we will lose 1/6 of our investment, and that the collapse of any of these 6 companies is highly unlikely (I would agree totally back then), but then its a structured product. So its not that simple, and it includes all the credit swap default things which i don’t want to describe here, but let me just say that instead of dividing the risk by 6, the RISK of default is MULTIPLIED by 6.
Obviously I told my mum to stay away. Unfortunately not everyone knows about investments or knows someone who knows.
forex
you have a great blog here! would you like to make some invite posts on my blog?