This evening, MAS isssued two statements with regards to the sale of structured products by financial institutions.
MAS and Financial Institutions to Ensure Investor Complaints are Dealt With Quickly and Fairly
MAS’ Approach in Dealing with Recent Developments Concerning the Sale of Structured Products
Essentially, they have appointed three individuals to oversee the relevant FIs’ complaints handling and resolution processes for the sale of structured products. However, they will not be personally involved in the resolution and settlement of individual complaints. The three individuals are:
- Gerard Ee
- Law Soon Keng
- Hwang Soo Jin
If there is found to be any breaches of laws or regulations, MAS will investigate and take appropriate action. While these can includes fines, they cannot include requiring FIs to pay compensation to affected investors.
MAS will also undertake a review of the marketing and sale of structured products, taking into consideration findings from the complaints handling and resolution process as well as international developments.
Separately in Hong Kong, the Democratic Party has said it will help investors sue the banks while the Consumer Council has promised a thorough probe and the use of its legal fund to help those found to have been misled. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission are also investigating marketing practices concerning the products.
The pressure appears to be working as three banks in Hong Kong namely, Dah Sing Bank, DBS Bank (Hong Kong) and Mevas Bank, are rumoured to be in discussions with investors to pay compensation.
HKMA has said that they will continue with their investigations even if the banks have reached a settlement with clients.