Martin Lee @ Sg
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HK Minibond Investors to Receive Further Payout

Some Hong Kong investors in the failed Lehman-Brothers minibond series of structured investments are set to receive a further, final payment in relation to their loss.

PricewaterhouseCoopers (PwC), the receivers of the minibond collateral, said investors in series 5 to 7 and 9 of the products will receive an additional payment of 10% from the distributing banks.

This was made as a result of an agreement with the Securities and Futures Commission, the Hong Kong Monetary Authority and 16 distributing banks.

The brings the payout for investors of series 5 to and 9 to around 70% of the original investment amounts although the underlying value of their investment is in the region of 30%.

Separately, a Hong Kong legislative report has said that lax regulation, banking malpractice and government inaction are to blame for the US$2.5 billion loss suffered by Lehman Brothers minibond investors in Hong Kong.

The report called for regulation of the financial services industry to be streamlined, and for the sale of risky and complex products to be limited to only suitable investors.

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