Banks sound note of confidence
Cheow Xin Yi
[email protected]
IT WAS a fact DBS bank was proud to proclaim: Some of the 200 investors it compensated did not even lodge a formal complaint with the bank.
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In its press statement after the Monetary Authority of Singapore released its update on Friday evening, the bank noted that one in four of its DBS High Notes 5 complainants got some form of compensation, “an indication that the bank’s overall processes are largely robust”.
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It took “full accountability” where standards were not met, offering full compensation to 8 per cent of complainants. In the other less clear-cut cases, it believed that bank and investor should be jointly responsible.
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Still, the bank noted, most of the 1,400 who bought High Notes 5 were not “vulnerable investors”: About two-thirds were priority banking customers with at least $200,000 in cash or investments, and 80 per cent were aged under 60.
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DBS also reiterated how it has tweaked its sales process to be more stringent, including a “cooling off” period. The bank issued the most thorough statement among the four banks whose selling tactics of Lehman-linked structured products came under fire. Still, DBS stopped short of disclosing the total payout.
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Only Hong Leong Group revealed it had set aside some $45 million, a sum to be accounted for in its results for its fiscal year ended last December. Its financial position remains sound, it stressed.
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The company has compensated many of its vulnerable customers and others on “compassionate grounds”. It noted many who received payments “have, in fact, redeposited their funds with Hong Leong Finance and we greatly appreciate their confidence and trust”.
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Maybank said it would communicate the results of its reviews to customers within four weeks, with priority given to the elderly. ABN Amro aims to communicate its results to all affected clients “as quickly as (it) possibly can”.
Cheow Xin Yi
What was the basis of paying compensation when no complaint was lodged. Do they keep educational qualifications of these investors, family members of staff, lucky draw receipients etc?. If it was done as matter of principle, then all should be compensated. Did their staff confess that they ambushed 200 blur sotongs.
Food for thought.
Why such a nice write-up.
Cheow Xin Yi
[email protected]
IT WAS a fact DBS bank was proud to proclaim: Some of the 200 investors it compensated did not even lodge a formal complaint with the bank.
.
In its press statement after the Monetary Authority of Singapore released its update on Friday evening, the bank noted that one in four of its DBS High Notes 5 complainants got some form of compensation, “an indication that the bank’s overall processes are largely robust”.
.
It took “full accountability” where standards were not met, offering full compensation to 8 per cent of complainants. In the other less clear-cut cases, it believed that bank and investor should be jointly responsible.
.
Still, the bank noted, most of the 1,400 who bought High Notes 5 were not “vulnerable investors”: About two-thirds were priority banking customers with at least $200,000 in cash or investments, and 80 per cent were aged under 60.
.
DBS also reiterated how it has tweaked its sales process to be more stringent, including a “cooling off” period. The bank issued the most thorough statement among the four banks whose selling tactics of Lehman-linked structured products came under fire. Still, DBS stopped short of disclosing the total payout.
.
Only Hong Leong Group revealed it had set aside some $45 million, a sum to be accounted for in its results for its fiscal year ended last December. Its financial position remains sound, it stressed.
.
The company has compensated many of its vulnerable customers and others on “compassionate grounds”. It noted many who received payments “have, in fact, redeposited their funds with Hong Leong Finance and we greatly appreciate their confidence and trust”.
.
Maybank said it would communicate the results of its reviews to customers within four weeks, with priority given to the elderly. ABN Amro aims to communicate its results to all affected clients “as quickly as (it) possibly can”.
Cheow Xin Yi
What was the basis of paying compensation when no complaint was lodged. Do they keep educational qualifications of these investors, family members of staff, lucky draw receipients etc?. If it was done as matter of principle, then all should be compensated. Did their staff confess that they ambushed 200 blur sotongs.
Food for thought.
Why such a nice write-up.
