Following a protest by several Hong Kong investors about how they were mislead into buying the Lehman Minibond Series, the Hong Kong Monetary Authority (HKMA) convened a meeting yesterday between representatives of investors who had purchased the Minibond, representatives of banks that had sold them and the trustees who are holding the collateral for the investments.
For the time being, hotlines have been setup by the various distributors to address the investors’ concerns.
The Straits Times also reported how many investors from Hong Kong, Indonesia and Singapore were not advised properly that the Minibonds they were buying actually contained complex derivatives.
The Monetary Authority of Singapore has issued a statement offering the following advice:
- People who think they have been mis-sold the product should contact the financial institute they bought it from.
- If the consumer is not satisfied with the FI’s response and they have a legitimate cause of grievance, they can approach FIDReC which is the independent organisation set up to help resolve disputes in the financial sector.