Thu Headlines – Relief for Lehman-Linked Investors?

October 23rd, 2008 · No Comments

Firstly, The Monetary Authority of Singapore (MAS) has received news that 2 international financial institution operating in Singapore are interested in restructuring the Lehman Minibond Programme notes so that they can run until maturity. If this happens, it may be possible for investors to either resume or cancel their investment.

Next, after MAS request for financial institutions to give priority to investors who are not well-educated on 17 Oct 08. The following banks have issued statements to help vulnerable (elderly & not well-educated) customers who have been found to be mis-sold the investment, in getting some or even full compensation.

Quoted from MayBank’s Media Statement

Maybank has already identified Lehman Minibond investors who belong to the vulnerable group, and their cases have been fast-tracked for review at the steering committee.

The management has reached a decision on deserving cases that warrant full compensation and are working out details before communicating the decision to these affected investors.

Quoted from Hong Leong Finance’s Media Statement

the Company proposed to purchase Lehman Minibond programme notes from its elderly and less well-educated customers who meet the two conditions given below:

main account holder must be 62 years or older at the time of investment with not higher than a primary school education; and joint account holder, if any, must also not have higher than a primary school education.

Quoted from DBS’ Media Statement

We agree with MAS on the need to give priority to vulnerable customers and are fast-tracking such cases.

we have found that a number of cases did not meet the standards DBS upholds and the Bank will be compensating these customers with effect from tomorrow.