Martin Lee @ Sg
Sharing is Caring!

Lawyer says Investors Could Recoup Some Cash Through Class Action Suit

Channel Newsasia had a short report yesterday night on the possibility of investors getting something back using a class action suit. 

Lawyer Leonard Loo on Channel Newsasia (Video link on that page).

Other stories in the press:

Hong Kong banks mis-sold Minibonds (AsiaOne)

DBS High Notes Protest (Lianhe Zaobao) Click here to listen to the article

Retiree Sues UOB (Lianhe Zaobao)

Retiree Sues Bank Over Losses (Today)

Needed: Voice for Small Investors (Today)

Retirees Turn Up for a Protest that Wasn’t (Today)

Minibond Holders Still Grappling With Outcome (BusinessTimes – access after 6pm)

$100,000 Life Savings Gone (Straits Times – subscription requried for access)

Leave a Comment:

Notify me of followup comments via e-mail. You can also subscribe without commenting.

28 comments
Patrick says 10 years ago

Interesting Article on how this ‘mis-selling’ has been an underlying issues for many years. With this saga..will things change for the better?

I am actually quite positive about some mentioned suggestions like mystery shopping…

Constructive suggestions made by the experts. Up to the authority to act.

http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_292590.html

Reply
DT says 10 years ago

Original WS,

It is immaterial to whether I worked for a FI or not or I happened to use the same WS since it has not been patented.

It is in the nature of every company (doesn’t apply to FIs) that sales = revenue = employment = salary. Unless WS has got a money tree planted in the house, then you only need to worry about the survival of the money tree, not about having a job.

MAS has already stepped out to assure that all complaints will be reviewed. Believed that a certain turn around time has been give to handle each complaint.

It is a good practice to read the terms and conditions before one signs on the dotted line. It is a must to go through the documents before one goes for the interview. It has already been quite sometime back, a refresher would probably bring back some points which was said during the sale.

Misrepresentation can easily be proven. Why are you so worked up then? Misrepresentation does not occur to just investments, it can happen to anything, even buying an electrical item. It can be easily detected if it happens. If there is misrepsentation, investors who falls in this category are likely going to be compensated.

WS do not seem to understand the structural difference of Minibond and High Notes. “VSL” was right; Minibond technically has not defaulted. There is intrinsic value in Minibond. Currently it is the arranger (read from pricing statement) that has gone bust.

Question now is who is going to be the white knight to give glimmer of hope or just sell away what’s left and split the money?

Reply
    original WS says 10 years ago

    DT,

    I am not talking about name patent, I just want to clarify that I did not wrote those trash comments because many in this blog know me by that initial.

    Who don’t know how to say “it is a good practice to read the terms and conditions before you sign” – but it shows you do not undersand the crux of the issue. How do you expect the lowly educated to understand why’s in the documents, so they ask the RMs, and the RMs told untruths, we are talking about “misled and mis-selling”, in other words cheating by the RMs/FIs.

    What has the logic of “It is the nature of every company to make money” got to do with the issue here – unless you are saying it is ethical and right to fleece the people as it is only natural that the companies make big fat profits regardless of the tactics they use.

    I have not commented anything on the structural difference of Minibond and High Notes, please get your facts right before you open your mouth.

    And if you claim you are not a RM, why are you writing such negative comments in this blog. What are your motives ? If you can’t spare a thought for the victims, at least keep your mouth shut.

    Reply
Mini 3 victim says 10 years ago

Hi VSL

Could you kind advise how do I write to RBS for my case? Has Maybank reverted to you and what did they advise?

Thank you very much

Reply
Mini 3 victim says 10 years ago

Has anybody purchased Minibond 3 from ABN AMRO (now is RBS)? I bought from them. Can someone tell me what should I do now? The next coupon payment is in Dec 08. They told me nothing is going to happen until the coupon payment is due.

Thank you.

Reply
    VSL says 10 years ago

    Technically, Minibond 3 has not defaulted yet. However the way things are going it is likely to default. You may want to write complaint letter to your FI now.

    FYI, I have MB3 also. I have already written to Maybank.

    Reply
      YH says 10 years ago

      Hi VSL,

      Are you able to send me a copy of how you wrote to Maybank? I also bought MB3 from them..

      Also, pls advise what are the steps to ensure our complaints are heard?

      Thanks,
      YH

      Reply
      YH says 10 years ago

      Sorry, left out my email. pls send to [email protected]

      Thanks!

      Reply
      Mini 3 victim says 10 years ago

      Hi VSL

      Could you kind advise how do I write to RBS for my case? Has Maybank reverted to you and what did they advise?

      Thank you very much

      Reply
        VSL says 10 years ago

        Mini 3 victim,

        There is a procedure on how to file the complaint in http://www.martinlee.sg/how-to-file-a-dispute-for-structured-product-victims/. Look at para 2 of that page.

        There is a sample template of the letter in http://www.martinlee.sg/minibond-victims-turn-to-mas/#comment-2308. Just fill in the blanks and modify it to suit your particular circumstances. PLS DO NOT COPY WHOLESALE.

        Send original letter to your FI and cc the flwg, preferably by registered post:-

        MAS
        Mr Goh Chok Tong (Chairman)
        Monetary Authority of Singapore
        10 Shenton Way MAS Building
        Singapore 079117
        Tel: (65)-6225-5577
        Fax: (65)-6229-9229

        FIDrec
        Charis Lee
        Assistant Manager (Complaints Management)
        Financial Industry Disputes Resolution Centre Ltd
        112 Robinson Road, #13-03
        HB Robinson
        Singapore 068902

        Also cc your MP. You can locate your MP from http://app.sgdi.gov.sg/listing.asp?agency_subtype=dept&agency_id=0000004564

        You shoud hear from your FI within a week regarding an interview.

        Maybank called me for an interview today. Since I do not have the full set of documents, I asked them to send me a copy of everything I signed including prospectus and pricing statement. They say they will look into it. I plan to review the documents before going for interview.

        Reply
    Kenneth says 10 years ago

    Hi,

    I too own Minibond 3. I have a soft copy of the factsheet [flyer], pricing statement and the base prospectus. If anyone wants a copy, do send me your email and I send a copy to you.

    Also from FI website,

    “How about the other Minibond Series?
    For the other series, the Issuer, Minibond Limited has not defaulted on interest payment yet. The event of default will occur if interest payments are due and not paid, which will in turn trigger an event of default under the notes. From the notice issued by the Trustee on the 9th October 2008, we understand that the Issuer (Minibond Limited) has indicated to the Trustee that it is unlikely the Issuer will receive any more funds from the Swap Counterparty (Lehman Brothers Special Financing Inc) or any other entity related to the Swap Guarantor (Lehman Brothers Holdings Inc) under the Swap Agreement and accordingly, unless a new swap counterparty can be appointed, an event of default is very likely to occur as interest payments become due.”

    My interpretation is there is no money coming in. So the rest of the series will default progressively.

    Regards,

    Reply
      SWN says 10 years ago

      Hi Kenneth,

      Could you send me the soft copy of the fact sheet and pricing statement at this email address: [email protected]

      Many thanks.

      Reply
      Patrick says 10 years ago

      Hi Kenneth,

      Appreciate your kind offer. Hope you can send a copy to [email protected] too. THanks.

      Reply
      YH says 10 years ago

      Hi Kenneth,

      Kindly send me a copy to [email protected]

      Thanks.

      Reply
      BS says 10 years ago

      Hi, Kenneth

      Could you send me the copy to my email

      [email protected]

      Thank you

      Reply
daphne phua says 10 years ago

Name: Daphne Phua
email: [email protected]

Pls contact me if you have invested in Hong Leong Minibonds….i am preparing a contact list to see what we can do together.

Reply
    YH says 10 years ago

    Hi Daphne,

    Pls contact me at [email protected] , I also bought from Hong Leong.

    Thanks,

    Reply
    Dan says 10 years ago

    Hi Daphne,

    I have also purchased minibonds series 5 thru’ Hong Leong Finance.
    Kindly add my name into the list.

    Thanks!

    Reply
WS says 10 years ago

The fall of Lehman Brothers has upset the entire world especially investors, financial institutions and regulatory bodies.

Many claim foul after losing money. Has anybody thank the financial institutions or regulatory bodies when money was made? No.

Singaporean do what they do best: complain to whatever media they can reach.

Sympathy is given to investors who have been misled. This group will likely have a case to fight for.

However many are savvy investors who had experience in more “dangerous” instruments now claim foul as well.

Who gets to benefit from the fame and money after raising such racket in Singapore? Think hard ……

The biggest losers are investors, because they not only loses their investment, hiring a lawyer (which means investors have to pay $$$) may not guarantee the win of the case, unless misselling is proven.

In case of misselling, Financial Institutions will usually refund the money.

Just one last thing, be nice to the Financial Institutions. Screaming would not help investor in getting their money back. There is a guided process which all complaints will be dealt with. Be factual and honest during the interview session; they can sniff out the liars and who are the ones trying their luck.

Going forward, the regulatory body need to put in more work and tighten the process. The Financial Institutions depend solely on the regulatory body to do the due diligence check. Looking closely, the net was not cast properly and sharks were allowed to lurk in Singapore “waters”, killing the many innocent.

Reply
    original WS says 10 years ago

    Hi WS,

    I am surprised that you using my same initial “WS”, so I shall call myself the “original WS” from now onwards in case people think I wrote the trash comments above.

    Firstly, you have got your logic all wrong. You asked “Has anybody thank the financial institutions or regulatory bodies when money was made? “. First the FIs including the regulatory bodies made money upfront when they sell these structured notes to the investors, what the investors are getting as interest pale in comparison to the commissions they are earning. So why should investors have to thank the FIs if they make money ? The FIs already make their fat profit whether the investments of their customers are profitable or not.

    Secondly if you read a little deeper in this forum and use your brain a little more, you will see the real point – what the investors are complaining is mispresentation by the banks. The toxic products were touted as safe and they assured investors that the products were low risks when in reality they have very high risks. And why did the authorities allow it to be called “Minibonds” when it was not bonds but CDOs ?? If it had been named “MiniTimebombs” for instance, no one in their right sense of mind will buy., right ? The name (Minibonds) itself speaks volumes of the intent to mislead investors.

    You wrote “Singaporean do what they do best: complain to whatever media they can reach”. Now make your brain work harder, think – did Singaporeans who lost in the stock market complain ?? No right, because they knew of the high risks before they invest in the stocks, they were aware they could loss a substantial portion of their investment. In the case of the structured notes, FIs MISLED investors into buying the products, FIs said they were SAFE and LOW RISKS, like FDs etc etc. So please don’t making sweeping statements !

    And what guided processes are you talking about. It is the bank itself that is taking in the investors’ complains of mis-selling, the same bank that had misled investors ! Isn’t this arrangement obviously dubious ?. It is “asking the thieves to audit themselves”, will the truth be known ? I doubt.

    Do you know our regulatory body’s international advisory panel consists of many top people from the banks itself ? How can we trust that the regulations/advice that the regulatory body dish out is not bias towards the FIs ?

    You said “be nice to the FIs”. If you lost your life savings to them, and they play taichi with you and refused to answer your questions and can even make sarcastic remarks, will you keep quiet ? You should be asking the FIs to be nice to the investors, ask them not to pretend as if nothing has happened, ask them to be honest in their dealings with the investors. You think people like to complain for nothing ? Think hard !

    You really sound like one of those people working for the FIs, my six sense is telling me that you are probably one of the heartless RMs who fleeced those innocent victims and hiding behind a name here.

    Reply
      Jolie says 10 years ago

      And you sound like one of those poor souls who lost their life savings.

      Minibonds is indeed a low risk product as compared to unit trusts and stocks. They are principal protected unless the issuer defaults – which is the same case for many structured products out there. And bonds aren’t exactly safe as well. But to say it is LIKE FD is not wrong either because they didn’t say it IS FD.

      Who will understand if the FI starts to explain how a CDO works? It’s just common sense to compare it with something which works about in a similar manner.

      Take putting a fixed deposit for example, if the bank defaults, the depositer gets nothing back as well. (Except for the $20,000 guaranteed by the government and now everything but that’s not the point)

      I wish you luck for all your complaints. But I think you have no case.

      Reply
        lioninvestor says 10 years ago

        Minibond is far from a FD. To say that is just plain misrepresentation.

        Reply
        VSL says 10 years ago

        Pls declare your interest in this forum? Are you an investor? Are you part of the solution or part of the problem?

        How can you say Minibond is a low risk product? Looking at its structure will tell how complicted and convoluting it is. Unit trust ia a basket of stocks. Just like stocks there is easy entry and exit. You know all the risks upfront. Same thing with FD. Previously one can put just $20k FD with each bank and sleep soundly.

        The issue with Minibond is you DO NOT know all the risks upfront. That is the main difference between Minibond and Unit Trusts or Stocks or FD.

        Reply
        Gollie says 10 years ago

        Jolie,

        And you sound like one of those poor things that have lost their souls (and brains).

        You are saying that Minibonds is indeed a low risk product and is principal protected ??? HA HA – this confirms that you must be one of the RMs from the FIs who don’t even know what they are selling !! The bank just told us that Minibonds is not principal protected, we have this info in black and white. But of course, before the sale, they don’t say such things else nobody will buy.

        Don’t you know if a bank defaults, the depositor gets back at least $20,000 – this is guaranteed by the law. You also said “It’s just common sense to compare it with something which works about in a similar manner” – Are you saying that a CDO is similar to a bond ? It is clear you don’t have any common sense, you don’t even know that a CDO and a bond are very different things ! Tsk tsk.

        Anyway, so many stupid statements from you, waste my time trying to educate you. Either your brain got twisted or you don’t have one to begin with, we are sooo sorry for you. There’s nothing we can do to help you, you can go complain to MAS.

        Reply
        Aaron says 10 years ago

        Jolie,

        Minibond is not a bond at all, although it is ends with the word “bond.” It is a complex derivative product disguised as a bond to fool ordinary investors. Only a devil, unscrupulous creature or a cheat would devise such an instrument to fool ordinary investors such that the originator would receive all the benefits and left all the risks to the investor with a fixed low return. To succeed in this mission, the originator needs a
        local financial institution to sell these products to unsuspecting investors with a sweetner of a slight higher interest than fixed deposits.

        Reply
        Aaron says 10 years ago

        The only way to prove whether Minibond is low risk product like bond or fixed deposit or highly dangerous complex derivative is to charge a few of the relationship managers in court, if they are found to misrepresent the product.
        Only a court hearing will reveal the truth.

        Reply
    sufferer of the bomb says 10 years ago

    even if you are not a victim of this saga, keep your mouth shut.

    what are your trying to prove ??? to prove that all of us who brought such products are idoits, fools trying to cry fouls ???

    if ever one day your daughter or sister wear exposing outfit and being rape – can we say they deserve it ?

    Reply
Add Your Reply

Notify me of followup comments via e-mail. You can also subscribe without commenting.