SIAS Advisory on MAS Investigation Report

Reported in TODAY, SIAS (Securities Investor Association Singapore) has reviewed the MAS investigation report on the sales and marketing of the structured products. The advisory FAQ can be read here.

Much has been said, debated and reported on the failed Lehman Minibonds, Merrill Lynch Jubilee Series 3 LinkEarner Notes, DBS High Notes 5 and Pinnacle Notes series 9 &10.

Though there is a process to go about pursuing claims on misrepresentation and to seek compensation, the practical truth is that redress (especially for those seeking 100% compensation) is often harder to seek after the fact/transaction notwithstanding our legal framework provides the means for it. Of course, this is no sweet news to those affected.

For the rest of us unaffected, the lesson must be how not to be blinded by attractive advertising and ask the right questions in order to put our monies to efficient effect. Be it for the purpose of growing our pot of gold or to provide adequate protection for ourselves and loved ones.

Just as a timely reminder, but shouldn’t we always have these questions in mind:

• Is this investment company registered/licensed under MAS?
• How does the investment work?
• How long do I have to hold the investment?
• What is the realistic case and worst case returns scenario?
• What are the underlying assets that back these returns?
• Is it possible to lose the entire sum invested? Do I have to make up for any further losses?
• If the investment company fails, what legal protection/recourse do I have?

Whenever there is doubt or discomfort, never be afraid to voice out to the adviser (banker, insurance agent, broker, IFA etc). If truly in client’s interest, he/she would never hesitate to assist in checking when they are unsure. After all, it’s your money.