In recent days, the Monetary of Authority of Singapore (MAS) has issued at least three press statements to address concerns raised by investors of structured products. I have read that independent parties will now deal with the complaints of such investors and review the calculation of payouts offered by at least one financial institution.
Such moves are unprecedented by MAS and the financial institutions. The collective reaction is probably intense enough to prompt them into such action.
I have also heard that some persons believe that they have been cheated into purchasing these products and are victims of illegality.
I am not sure how true this is. I have not read any reports of the police commencing an investigation into the incidents. Such claims can only adversely affect our financial system.
Nevertheless, if you feel you are the victim of an act that you think is a criminal offence, make a police report. Let the police (in particular here, the Commercial Affairs Department) investigate the incident and clear the air.
This is perhaps more constructive than merely protesting someone cheated you.
Happiness,
Dharmendra Yadav
Please consider the environment - do you really need to print this?
2 comments:
The MAS Press release reads ¨While MAS cannot order FIs to pay compensation, we are committed to ensuring a fair resolution process for all affected investors.¨
It now appears that MAS is a toothless tiger, unlike the Hong Kong Monetary Authority.MAS even conveniently delegated the responsibility to FIDReC.
Although FIDReC exists for dispute resolution, its limitations favour the FI:
1. payout is limited to S$50,000.
2. investors must approach FIDReC on an individual basis.
3, Collective action is prohibited by FIDReC.
4. FIDReC orders are not binding
This means the FIs can seat behind the protection of well-paid in-house lawyers while investors are prohibited to pursue this advantage by pooling their resources. If the FI were to disagree with FIDReCś ruling, it can still choose not to do anything.
Dharmendra Yadav, hot shot lawyer and bootlicker of the PAP lands himself in hot water after a client asks him to execute his last will where he insists " that all my savings be cremated with me when I die."
After the cremation, agents from the MAS approach him. " Do you know that it is illegal to burn currency in Singapore. You are under arrest."
" Wait a minute," says Dharmendra as he opens up his safe which is lined with currency."All the money is still in my safe."
"Then you are under arrest for failing to carry out your clients orders." the people in MAS retort.
" That's not true," says Dharma with his forked tongue, " I did cremate his money. I wrote him a cheque."
Om
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