Full refund of $100,000

Dear Mr. Tan,

My mother-in-law obtained a full refund of $100,000 from the financial institution on the minibond that she bought. We positioned our complaint based on the advice given in your blog. (Specific details have been removed, due to non-disclosre requirements). I wish to thank you for your help.

Thought for the day - who will speak the words that need to be heard?

" If reporters don't report and universities don't debate; if the "open society" is really just a hushed conversation within a gated community; if information is ground under by right-wing think tanks - in short, if power is admired and truth despised - then who will speak the words clearly that need to be heard"

Roger Langen 

 

Contributed by Ho Cheow Seng

MAS statement: Compensation for credit linked notes

Further details of the compensation are shown in MAS website:

http://www.mas.gov.sg/news_room/press_releases/2009/MAS_Provides_Updates_on_Complaints_Resolution.html

According to the MAS statement, the investors would be informed about the compensation offer in stages over the next few weeks. This could explain why so few investors have received their offer of compensation so far.  

Mis-selling of structured products

Almost all elderly investors with little income, formal education or investment experience were compensated.
By Francis Chan

MORE than half of the reviewed complaints of structured products of Lehman Minibonds, DBS High Notes 5 and Merril Lynch Jubilee Series 3 Linkearner Notes have received some compensation, said the Monetary Authority of Singapore on Friday. In the latest update, MAS says 58 per cent of investors who have lodged complaints of mis-selling to the financial institutions that sold them the products have received a full or partial settlement.
About 25 per cent of those received full settlements, while 33 per cent got partial settlements.

According to the MAS, almost all elderly investors with little income, formal education or investment experience have been fully or partially compensated.

MAS deputy managing director for market conduct, Shane Tregillis said: 'MAS is satisfied that FIs have carefully reviewed the complaints based on principals of fairness without taking strict legal positions. This is reflected in the settlements offers that the FIs are making to the investors.'

http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_326983.html

Learn about insurance

You can find some common concepts explained in a simple way in:

http://www.tankinlian.com/course/

Investor wants to sue the relationship manager

Dear Mr. Tan

Seek your views on the following:
Q1 Can sue the RM personally for mis-selling and mis-representation, if I am not happy with FI investigation.

Q2 If I sue the RM, do you think the FI will defend her or the RM has to defend herself.

Q3 Do you think Leonard Loo is a possible choice, or get another lawyer?

Actually, money loss can be earned back. It saddened me that many uncles and aunties may not even know they are intoxicated OR those who are intoxicated may not know how to fight on ground of mis-selling and mis-rep which is a legal concept.

I think MAS is making it worst for investors. Imagine, we are cheated, now we have to prove that we are “idiot” ie “vulnerable or mis-selling or mis-rep” to get back our money?

"Pinnacle Action Group" formed to work on a possible Class Action

(1) A working committee of 6 investors (informally called "Pinnacle Action Group") have come together to work on a possible class action for Series 1,2,3,5,6,7,9 & 10 of the Pinnacle Notes. Series 9 & 10 have been declared worthless and the other Series were notified in December 2008 that they are close to but not yet declared worthless. The fate of these other series now hang in the balance. The group feels that we cannot allow this tragic event to go unchallenged

(2) We have briefed several Senior Counsel (SC)and the proposed class action will,unlike the case of Minibonds, be against the arranger of the Notes, viz Morgan Stanley Singapore. An official website to facilitate the organizing of the proposed class action will be launched as soon as one of the SC briefed has been appointed to take on the case.

(3)The proposed class action will target 1000 or more affected investors in the various series to join in .The legal fee structure proposed will be simple and affordable - perhaps as low as only about $1000/- per head - on an all-inclusive basis right up to appeal stage , win or lose. To do this , we need 1000 or more to join in. The process will also be kept simple and the issues raised will be easy to understand for all who wish to join in the proposed class action and try and recoup their losses.

To be kept informed, before the launch the official "Pinnacle Class Action" website, Pinnacle investors are urged to contact us at the email address given below. Please provide us with your:

(a) name; (b) Series bought; (c) email address, and (d) contact tel

Thank you.

Sincerely,
"Pinnacle Action Group"

(J C Chan, S Tan, C S Lim, P Loh, B T Tee and C Y Boey)

Email: pinnacle.action.group@gmail.com