It has been more than two years since the collapse of Lehman Brothers that triggered a mass default of structured notes sold in Singapore.
Even up to today, some investors who thought they had bought into “safe” investment products are discovering the ugly truth behind the products they had been sold.
Just two weeks ago, Morgan Stanley announced that their Pinnacle Notes 2, a credit-linked note, is likely to go into mandatory redemption.
When that happens, investors of the note will lose a significant part of their capital.
With the outcome of all cases that were settled with Fidrec kept confidential and MAS’s stance of not publishing regulatory actions of a private nature, it is no surprise that affected investors are finding it hard to decide on their course of action.
It tells a lot when people prefer to go to forums to seek advice from strangers rather than approach our regulators.