Sat/Sun Headlines – Lehman-linked Structured Pdts

October 19th, 2008 · No Comments

The Singapore investors of structured products (DBS High Notes 5, Lehman Minibond & Merrill Lynch Jubilee Series 3 Linkearner Notes) linked to the failed Lehman Brothers once again dominated the headlines which centered around the opening remarks by Managing Director of The Monetary Authority of Singapore, at the MAS Press Conference (17 Oct 08) on the Sale of Structured Products to Retail Investors.

Here are the key points to this fiasco update:

MAS is urging all affected investors who have a genuine claim that they were mis-sold the investment to lodge their complaint with the financial institution they bought it from
For cases of mis-selling complaint, MAS demanded the financial institutions to give priority to investors who are not well-educated and not take an “overly legalistic” approach
Each financial institution has appointed an independent 3rd party to supervise the process in dealing with complaints by investors and ensure they get an unbiased hearing
All the financial institutions involved have set up an internal review panel chaired by their CEOs to carry out a detailed review of each complaint. A course of action must be determined within 4 weeks and disclosed to the customer
The investors who are not happy with these internal review panels’ decision can bring their case to the Financial Industry Disputes Resolution Centre (FIDReC), which has agreed to hear “deserving cases”. Basically, FIDReC assists in the resolution of disputes between consumers & financial institutions.
Finally, MAS has launched formal investigations into accusations of mis-selling by the financial institution or individuals involved