Martin Lee @ Sg
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Should MAS Act?

In the past couple of years, many claims were made by investors who bought structured products which had collateralised debt obligations (CDOs) embedded in them.

Recently, it was reported that Goldman Sachs was being charged by the US Securities and Exchange Commission (SEC) with fraud in some of their CDO deals. In addition, some other banks might also be investigated.

In view of the developments in the US, someone wrote in to the Straits Times forum to ask whether MAS would be doing its own investigations into the troubled CDOs that were sold here.

The reply from MAS mentioned that MAS would take regulatory action where there is a breach but leaves it open whether it would be doing any investigations.

I refer to “Should MAS act?” (ST Forum, 24 April 2010).

Entities offering securities to the public in Singapore are required to comply with the Securities and Futures Act which, among other things, requires proper disclosure of the features and risks of the product. Where there is a breach of regulation or law, MAS will take appropriate regulatory action. MAS also monitors developments in various jurisdictions. However, not all developments in other jurisdictions will be equally applicable in Singapore.

Angelina Fernandez
Director (Communications)
Monetary Authority of Singapore

Leave a Comment:

VSL says 10 years ago

As usual, MAS reply does not answer the question specifically. Instead it provides a generic bureaucratic reply that doesn’t mean anything to anybody.

Most investors have been compensated somewhat, so I don’t think MAS will act further. MAS just does not have the guts to prosecute FIs, as it needs the latter to boost sg’s financial status.

Perhaps MAS might act if someone of authority (eg Town Council) lodges a formal complaint. Knowing these town councils, they are also gutless.

The surprising thing about this govt is that it is acting minimally in the Minibond scandal, but is going to great lengths to prosecute Ionesceu to the extent that it may even damage Sg-Romania diplomatic ties. Is justice misplaced here?

    Protem says 10 years ago

    MIAG [Minibond Investor Action Group] will take the legal suit to the Court of Appeal if necessary to lay bare the deceptions in the marketing of these CDO instruments to the unsuspecting retail investors. We are interested to see justice and in action of MAS in safeguarding singaporean.

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