Meeting at Speaker's Corner 18 Oct, 6-7 pm

[Ah Hai]

Monday, November 17, 2008
Speech at Speaker's Corner - 15 Nov 2008
1. Petitions to MAS
1 wish to give you an update of the progress of the three Petitions sent to the Monetary Authority of Singapore.

Petition #1 was sent to MAS on 9 October 2008. It was signed by 983 investors of the credit linked securities. It asked the Government to investigate into possible wrong-doings by the financial institutions that created and marketed these securities to the retail investors.

If there were possible wrong doings or breaches of the existing laws, specifically the Securities and Futures Act and the Financial Advisers Act, the Petition ask the Government to take appropriate action against the financial institutions and to seek fair compensation for the investors for their losses.

I met with Dr. Andrew Khoo and his colleagues on 9 October to hand over the Petition, which was addressed to Mr. Goh Chok Tong, chairman of MAS. I briefed Dr. Khoo and his colleagues about the possible areas of breaches of the existing laws.

I have not heard from MAS subsequently on the outcome of this Petition. I have sent two rerquests to Mr. Goh Chok Tong and to Dr. Andrew Khoo for a meeting to discuss the progress. So far, I have not been successful in getting this meeting.

Petition #2 was sent to MAS on 17 October 2008. It was signed by 277 investors. It asked MAS to investigate the sales training and marketing processes of the financial institutions that distributed these securities. Specifically, the investigation should examine if the sales representatives that distributed the securities were trained about the correct features of the securities and on the content of the prospectus, so that they can give the correct information to the investing public.

I have received an acknowledgment to this Petition. I do not know if the MAS intend to carry out any investigation as requested in the Petition.

Petition #4 was sent to MAS on 31 October 2008. It was signed by 1,017 investors. It asked MAS to review the complaint handling process of the financial institutions that distributed the credit linked securities. It asked MAS to set up an independent unit to receive the complaints and to encourage the financial institutions to adopt a collective approach in offering fair compensation to the investors who were misled into investing in these securities.

I have asked for a meeting with a senior official in MAS to discuss this petition and to follow up on the progress of the earlier petitions. My request was declined.

I reminded MAS that I am speaking on behalf of about 1,000 investors. They should not ignore my request for a meeting or to treat me like any single individual with a grievance. Even a single voice should be heard. If 1,000 voices are not loud enough, I wonder what will make our officials hear?

I will continue with my efforts.

2. Letter from an investor
I wish to share with you the views of an investor called SB. It is posted in my blog. This investor is willing to share some responsibility for investing in the credit linked securities carelessly, but is unhappy with the response of the Government leaders. I read his letter to you:

http://www.blogger.com/posts.g?blogID=11702093

I replied to SB that his approach is along the same lines that have been covered in Petition #1. So far, I have not heard from MAS if they intend to carry out an independent investigation into this matter.

3. Statutory declaration
A few weeks ago, I suggested that each investor should get a lawyer to help you to write a statutory declaration. This statement should explain how you were advised into making the investment. If you were given the wrong information or were misled about the credit linked notes, this fact should be stated in the statutory declaration. The lawyer will help you to state this fact properly.

You should make the statutory declaration truthfully and honestly. If you tell a lie, you can be prosecuted under the law. However, if you tell the truth, your statement under oath will have a stronger impact.

If many investors make similar statements about how they were sold or mis-sold on the credit linked notes by the sales representatives from the same financial institution, these declarations taken together will establish a pattern of mis-selling by the financial institution. It will convince an independent and impartial judge about the mis-selling.

The Monetary Authority of Singapore and FIDREC said that the statutory declaration is not necessary.

Subsequently, we learn that many of the financial institutions have rejected the claims of mis-selling made by the investors.

If your claim has been rejected, I advise you to make a statutory declaration now and lodged your complaint again with the financial institution. If they reject it again, you can use your statutory declaration to lodge your complaint to FIDREC.

You have lost many tens or hundred of thousand dollars in making these investments. It is better for you to send $120 to make the statutory declaration and lodge your complaint again.

If the statutory declaration is still rejected by FIDREC, you can join the collective legal action. The statutory declaration can be used for this third step.

4. Collective legal action
My committee is discussing with a few lawyers on the approach to take on a collective legal action.

Our Government leaders and MAS have advised that this should be avoided, and that other avenues are open for the investors to seek their redress.

Many investors have lost faith in their recommended approach.

My committee will help the investors to prepare for collective legal action, but we still advice that the legal action should be taken only as the last resort.

I hope that the MAS will respond to my requests for a meeting to discuss how the matter can be resolved fairly and that a costly legal action can be avoided.

We are still keen to seek an outcome that is fair to the investors and preserve Singapore’s reputation as a financial hub that can be trusted to take care of the interest of the ordinary people.

Tan Kin Lian
Posted by Tan Kin Lian at 7:22 AM

 

[Ah Hai]

Monday, November 17, 2008
How I was misled (2)

Dear Mr. Tan,

My UOB fixed deposit has matured during that period. During that time H has a better interest rate offer for fixed deposit. We intend to place the money as fixed deposit with H.

When we were there, the staff at the counter persistently advised us to deposit our money into their investment product. We told her that it was our life saving and we were a low risk taker and would not want to take risk and we would want to place it as fixed deposit and we don’t want to get involve in any investment which we are not sure of.

She continued to show us a brochure on Pinnacle Notes and persistently advised us to reconsider as it is high interest rate return and also very low risk. Thinking that it would be very safe and we are going to put in our saving for sometimes, we agreed to understand further. She directed us to the Financial Manager R.

The Financial Manager R explained to us on the Pinnacles Notes product. She told us how good the product is and told us that it is for 5.5 years saving with higher interest rate of 5.25%. It is also a very low risk investment as the bank is investing on reputable AAA’s companies listed under the Reference Entities stated in the brochure so we don’t have to worry.

They are:
Commonwealth of Australia
Hong Kong Special Adminstrative Region of the People’s Republic of China
Republic of Singapore
Singapore Telecommunications Limited
Temasek Holdings Pte Ltd

She told us that even in the event that US or the whole world goes into financial crisis our deposit and interest will remain and continue to receive the interest every six-monthly. She told us that ONLY if one of the 5 companies goes bankrupt then our deposit will be affected.

We repeatedly highlighted to her that we are very low risk takers and this is our life saving. She kept reassuring us that the companies involved are all AAA and reputable company and we don’t have to worry about that. However, she never mentioned of any other investment on any other companies that the bank does that would affect my deposit.

She also told us that this product is overwhelming and they reopened it again.
To be cautious, I called one of my colleagues for his opinion. He said that the five companies are quite reputable and if the promise is there, then it should be ok.

After some thoughts, we decided to invest in the product since she kept repeatedly said that the risk is very low and ONLY if one of the 5 companies goes bankrupt then our deposit will be affected and the product is going to end soon on 30 Nov 2007 and we may miss the opportunity.

She did mention to us that the investment is not guaranteed return. She repeatedly assured that ONLY if one of the 5 companies goes bankrupt then our deposit will be affected.

She asked us to sign some forms to declare that she have briefed us on the product. She mentioned that it is only for formality sake. We don’t totally understand the content in details. Based on verbal trust of what she had assured us and since it is formality we signed the form as this is our first time investing in such a product.

The forms were given only after we agreed to invest in the product. We didn’t really read the forms in detail. Just like we buy and sell HDB flat where the officer will require us to sign copies and copies of forms, we do not have the time to read all the details especially the small prints. We don’t really fully know and understand what is in the content in the forms.

We totally rely on what the Financial Manager R verbally assured us. The most important aspects of the advice is that she kept repeatedly assuring us that the risk is very low and ONLY if one of the 5 companies in the Reference Entities goes bankrupt then our deposit will be affected. Even if US or the world goes into crisis it will not affect our investment and we will continue to get our interest six monthly. The most important point is that she did not mention of any other investment on any other companies that the bank does that would affect my deposit.

 

[Ah Hai]

Monday, November 17, 2008
How I was misled (2)

Dear Mr. Tan,

My UOB fixed deposit has matured during that period. During that time H has a better interest rate offer for fixed deposit. We intend to place the money as fixed deposit with H.

When we were there, the staff at the counter persistently advised us to deposit our money into their investment product. We told her that it was our life saving and we were a low risk taker and would not want to take risk and we would want to place it as fixed deposit and we don’t want to get involve in any investment which we are not sure of.

She continued to show us a brochure on Pinnacle Notes and persistently advised us to reconsider as it is high interest rate return and also very low risk. Thinking that it would be very safe and we are going to put in our saving for sometimes, we agreed to understand further. She directed us to the Financial Manager R.

The Financial Manager R explained to us on the Pinnacles Notes product. She told us how good the product is and told us that it is for 5.5 years saving with higher interest rate of 5.25%. It is also a very low risk investment as the bank is investing on reputable AAA’s companies listed under the Reference Entities stated in the brochure so we don’t have to worry.

They are:
Commonwealth of Australia
Hong Kong Special Adminstrative Region of the People’s Republic of China
Republic of Singapore
Singapore Telecommunications Limited
Temasek Holdings Pte Ltd

She told us that even in the event that US or the whole world goes into financial crisis our deposit and interest will remain and continue to receive the interest every six-monthly. She told us that ONLY if one of the 5 companies goes bankrupt then our deposit will be affected.

We repeatedly highlighted to her that we are very low risk takers and this is our life saving. She kept reassuring us that the companies involved are all AAA and reputable company and we don’t have to worry about that. However, she never mentioned of any other investment on any other companies that the bank does that would affect my deposit.

She also told us that this product is overwhelming and they reopened it again.
To be cautious, I called one of my colleagues for his opinion. He said that the five companies are quite reputable and if the promise is there, then it should be ok.

After some thoughts, we decided to invest in the product since she kept repeatedly said that the risk is very low and ONLY if one of the 5 companies goes bankrupt then our deposit will be affected and the product is going to end soon on 30 Nov 2007 and we may miss the opportunity.

She did mention to us that the investment is not guaranteed return. She repeatedly assured that ONLY if one of the 5 companies goes bankrupt then our deposit will be affected.

She asked us to sign some forms to declare that she have briefed us on the product. She mentioned that it is only for formality sake. We don’t totally understand the content in details. Based on verbal trust of what she had assured us and since it is formality we signed the form as this is our first time investing in such a product.

The forms were given only after we agreed to invest in the product. We didn’t really read the forms in detail. Just like we buy and sell HDB flat where the officer will require us to sign copies and copies of forms, we do not have the time to read all the details especially the small prints. We don’t really fully know and understand what is in the content in the forms.

We totally rely on what the Financial Manager R verbally assured us. The most important aspects of the advice is that she kept repeatedly assuring us that the risk is very low and ONLY if one of the 5 companies in the Reference Entities goes bankrupt then our deposit will be affected. Even if US or the world goes into crisis it will not affect our investment and we will continue to get our interest six monthly. The most important point is that she did not mention of any other investment on any other companies that the bank does that would affect my deposit.

Posted by Tan Kin Lian at 8:58 AM

 

[Ah Hai]

Monday, November 17, 2008
Lawyers able to act on credit linked notes
Read the following:

http://www.tankinlian.com/forms/listoflawyersFinancialCrisisAssist(081101).pdf
Posted by Tan Kin Lian at 9:08 AM

 

[Ah Hai]

Monday, November 17, 2008
Publish a book on Credit Linked Notes
I wish to collect materials to publish a book to outline the experience of investors of the credit linked notes (i.e. minibonds, pinnacle notes, high notes, jubilee notes, etc).

If you wish to share your personal experience, please write your story (800 to 1200 words) to explain the following:

1. How did you get to invest in these notes
2. What were your told about the product
3. How much did you invest
4. What was your past experience in investing your money?
5. What was your reaction when you learn about the true nature of these credit linked notes?
6. How does the financial loss impact you?
7. What lesson do you wish to share with the future generation?

Please use your real name, contact number, name of product and financial institution. The editor will use another name (to hide your identity) and get your agreement, before your story is published.

Send your story to [email protected]
Posted by Tan Kin Lian at 10:05 AM

 

[Ah Hai]

Monday, November 17, 2008
Remembering Mohideen Gany
Dear Mr Tan,

On behalf of my family, I wish to thank you for your kind concern, visits and support during my father's last few moments.

I know how much my father must have been comforted by your visit and presenceand had valued & treasured those moments when you visted him at the hospital and at home.

He had held NTUC INCOME very dear to his life. I know that for sure as my siblings and I grew up in the midst of his untiring effort, commitment and dedication to the progress and development of NTUC INCOME.

He had been a model and an inspiration to me and we sorely miss him. We are proud of his achievements as the First President of NTUC Summit Club President and for being one of the leading organisers for several years in the 1970's and 80's.

Thanks for remembering him in your blog.

With deep appreciation and thanks
Naseer Ghani
(His Eldest Son)

 

[Ah Hai]

Monday, November 17, 2008
Islamic investment products
Dear Mr. Tan Kin Lian,

I am an avid reader of your blog and must thank you very much for all the help and info you provided. Unfortunately I invested in Minibond before getting to know about your blog.

Though not urgent, perhaps you could write something about Islamic Investment products in your blog. I somehow feel that the current fiasco involving Minibond, Jubilee, Pinnacle, High Notes 5 products etc WOULD NOT have occurred had these products been structured according to Islamic investment guidelines.

From the little I know about Islamic investments, they are governed by certain principles viz:-

> Full transparency in the product structure. Product should not knowingly hide bad points and boast about the good points.
> There must be no intent to deceive investors, nor sell knowingly worthless products.
> Product should not involve highly risky companies whose values may swing very high or very low.
> Product should not be speculative in nature, but rather based on solid long-term fundamentals.
> Investment should not be linked to immoral activities eg gambling, drug trafficking, prostitution etc.
> “Interest” should not be paid to investors, but modest “dividends” may be distributed to investors based on product profitability.
> Above all, the investment product must comply with Islamic religious scriptures.

I feel such products are what we need in this age of uncertainty. They will be very reassuring for the bulk of investors who are mainly low-risk type. Certain Middle East countries are moving fast in this direction, including targeting women investors who are traditionally risk-averse and are now coming out of the closet.

In the book that you are planning to write, pls dedicate several detailed chapters on Islamic Investment products. The world is full of western-style investment gurus, but short on Islamic Investment advisers.

I don’t see much of Islamic investment opportunities for the retail sector in Singapore. There are some, but are meant more for institutional investors or having a high entry level. Any pointers on this pls? Thank you very much for your continued efforts to educate investors.

VS

REPLY
I am not knowledgeable on Islamic principles. But, I must say that I like all of the principles that have been described above (except the "above all" principle, which is relevant only to the Muslims).

Posted by Tan Kin Lian at 2:48 PM

 

[Ah Hai]

Monday, November 17, 2008
Match investors' needs
Nov 17, 2008

THE Monetary Authority of Singapore (MAS) may require financial services companies to sell products that better match investors' needs and include clearer risk labels linked to the investments, Finance Minister Tharman Shanmugaratnam said in Parliament on Monday. 'If an investor has been sold a product that's clearly unsuitable, if there are clear-cut cases of a mismatch, then the financial institution will ensure the investor gets proper restitution,' he said. 'That's the way we ensure there's trust in the system.'

Mr Tharman was replying to questions on the MAS probe into complaints by retail investors who said they were misled into buying structured products linked to the now-bankrupt Lehman Brothers Holdings.

Individual investors in Hong Kong, Singapore, and Taiwan have demanded refunds from banks selling them structured notes linked to Lehman.

DBS Group Holdings, Singapore's biggest bank which said late Oct most of the securities are now worthless, has estimated compensation to investors in cases where the bank didn't meet the 'standards' it upheld could amount to as much as $80 million.

Lehman's bankruptcy on Sept 15 sparked protests by investors in Hong Kong and Singapore seeking compensation for the products sold by DBS and other financial services companies.

'What's far more useful is to ensure good disclosure: simple, clear, good disclosure,' said Mr Tharman, adding that the monetary authority will study 'all' investor complaints.

He also said the note buyers should bear the responsibility of the investment outcome if there's no mis-selling by the banks, though he said his 'sympathies' lie with the investors, reported Bloomberg news.

http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_303359.html

 

[Ah Hai]

Monday, November 17, 2008
My blog and its target audience
I write this blog to educate the general public about financial planning, insurance and social issues in Singapore.

I advised people against investing in high cost financial products, such as structured products, certain types of life insurance products, time share and land banking.

The people who sell these products dislike my views. They attack me by posting anonymous and mischievous comments in my blog. I have to block these comments.

Some people also use my blog to attack NTUC Income, their agents and products. I also block these comments.

If you wish to submit comments that differ from my views, you can state them honestly and fairly, and use your real name. I will be happy to post them.

If you dislike the views posted in my blog, you should stop visiting it. My blog is not meant for people who make a living selling products that I discourage. You can create your own blog to argue the merits of your products and encourage people to visit your blog.
Posted by Tan Kin Lian at 5:43 PM

 

[Ah Hai]

Monday, November 17, 2008
None Are So Blind As Those Who Will Not See The Truth
When I read the statements from various high-level ministers about investors who should be aware about the nature of the credit linked notes, I recall a statement: "None Are So Blind As Those Who Will Not See The Truth"
Posted by Tan Kin Lian at 6:00 PM

 

[Ah Hai]

Tuesday, November 18, 2008
High risk of credit linked notes
When we invest in a corporate bond, we take the credit risk of one company. If the company goes bust, we lose our invested sum.

When we buy a credit-linked note, we take the risk of 6 to 8 reference entities. If any reference entity goes bust, we lose our invested sum. The risk is mutiplied 6 to 8 times.

In addition, we take the risk of 100 or 150 underlying assets. If a certain number goes bust, we lost our invested sum. This may double the risk of the reference entities.

In all, the risk of losing our invested sum can be 10 to 15 times of the risk of 1 corporate bond. What do we get for this high risk? 5.1% per annum.

Did the sales materials and propectus describe the risks transparently and fully? They did not. In fact, the sales materials were written to mislead the investor. The propectus was not intelligible to the ordinary investor.

The only statement that is readable is "You can lose some or all of your investments on a credit event". This statement applies to most types of investments. It failed to disclose that the risk is 10 to 15 times (or whatever is the correct level of the risk) of the failure of one bond.

Under the Securities & Futures Act, it is an offence to give misleading statements or to hide relevant facts when selling securities to the public. I hope that the authority will take the financial insitution to task for breach of this Act.
Posted by Tan Kin Lian at 12:03 AM

 

[Ah Hai]

Tuesday, November 18, 2008
Local Banks still focused on garnering new sales at this time!
Dear Mr Tan,

With the recent saga over the few structured products and mini-bonds, we would assumed that the banks' role will be focusing on providing assurance to their existing customers and customer retention.

Yesterday, I received a call from a personal banker from a local bank. He was telling me about a fixed deposit promotion and that I should meet him at the branch as the promotion will be ending soon. Fair enough, I went down to check it out but to my surprise, the banker starts to sell me their insurance plans!

Upon further subtle probing, I realised that the bank are still pressuring their staff to sell and to maintain certain target or they may be the next to go. Is this what the local banks should focus on at this point of time? Is it just another convenient excuse to axe their staff? Or is it trying to compete with rival banks for business?

I read in a recent article that most foreign banks have channelled their sales force to focus entirely on customer service and handling all the related enquries. I believed that this is the correct approach and the least that the banks can do now for their customers.

I cannot even imagine that there are still banks imposing targets on their staffs at this time. Are they encouraging them to mis-sell or misrepresent their products to secure their jobs? Does it matter to them what product they are selling to the customers or if the product is suitable? Will history repeats itself all over again when the customers complained about the products they buy at this time?

As more products are being affected, I believed that the whole episode is here to stay thus I sincerely hope that the local banks will know their priority, have more compassion and adopt the correct approach. It would definitely be better if the MAS can intervene and developed a policy to control the industry.

This is an extremely difficult time for Singaporeans, especially so for many uneducated and unsavvy customers who do not know the avenue to check about their current products.

Mr Seow
Posted by Tan Kin Lian at 6:25 AM

 

[Ah Hai]

Tuesday, November 18, 2008
Asians fail to join class action claims
Dear Kin Lian,

I am not one of those affected investors, but I think this class action in US could be something for our institutional investors to think about. Thank you.

Asian investors are missing out on billions of dollars by not taking part in class action lawsuits against US companies whose managers have been accused of improper corporate behaviour, according to a study.

Pension and asset managers in the region failed to claim a combined $1.5bn in compensation between 2000 and 2007, said Goal Group, a class action services specialist.

This article can be found at:
http://www.ft.com/cms/s/0/a74a4388-b409-11dd-8e35-0000779fd18c,_i_email=y.html

 

[Ah Hai]

Tuesday, November 18, 2008
Pinnacle Notes 9 and 10
Read my blog dated November 2007, when the product was first advertised:

http://tankinlian.blogspot.com/2007/11/pinnacle-notes-series-9-10.html
Posted by Tan Kin Lian at 6:43 AM

 

[Dan Now]

Singaporeans can always sign up for more annuity, zero government support and retirement for their old age, sell off their kidneys and sign their advance death directive if they fear they can go bankrupt.

Whats there to worry ?

The PAP is a caring, gracious government and full of love for its people and thier high morals have never failed us.

Lose money make some more lor. Thats the typical MIWs reply. So why bother to even seek for compensation and what not.

I mean this is Singapore afterall.

Dan

 

[Ah Hai]

Tuesday, November 18, 2008
Revosave and Vivolife
Someone continues to post comments to attack the new products- Revosave and Vivolife, launched by NTUC Income. I have blocked these comments.

If this person submits a fair analysis of the products, I will post them here.

Here are some of my post postings giving general comments about these products:

http://tankinlian.blogspot.com/2008/09/unable-to-pay-premium-till-70-revosave.html
http://tankinlian.blogspot.com/2008/09/twisting-of-ilp-to-revosave.html
http://tankinlian.blogspot.com/2008/02/comparing-anticipation-and-revosave.html
http://tankinlian.blogspot.com/2008/09/advice-on-vivolife.html
Posted by Tan Kin Lian at 8:16 AM

 

[Ah Hai]

Tuesday, November 18, 2008
George Washington and the cherry tree
A legend is told about George Washington as a boy. Young George had a new hatchet and with it he cut down a small cherry tree. When his father saw the tree, he was angry. "George," he said. "Did you do that?" George was afraid to admit that he did.

Nevertheless, the boy decided to tell the truth. "Yes, Father," he said, "I cut down the cherry tree with my hatchet. I cannot tell a lie." George Washington's father was proud of George for telling the truth.

Moral of this story
1. No investor would have bought the credit linked notes, if they were told that the real risk is 10 to 15 times of the risk of default of a single entity.

2. The financial institution would not have sold this type of product, if they know that it was toxic and very high risk.

3 The authority would have not "registered" the product for sale.

I hope that the moral of George Washington's story will encourage the parties to come forward and say, "I cannot tell a lie. I made a mistake to buy/ sell / register the product."
Posted by Tan Kin Lian at 8:24 AM

 

[Ah Hai]

Tuesday, November 18, 2008
Relief loans to replace loss of earnings
PM Lee said that our finances are sound. The Government will implement measures to stimulate the ecoomy.

The recent methods to stimulate the economy are:
a) Spend on infrastructure works (i.e. Singapore and China approach)
b) Give money to the people to spend (i.e the US stimulus package)

These methods are good. I wish to suggest a third method:
c) Allow each person to apply for a relief loan for the loss or reduction of earnings

Here is how the relief loan works:
1. The borrower can apply for a relief loan to replace the loss or reduction of earnings.
2. This loan will carry interest at 2.5% p.a.
3. The total borrowing can be subject to a cap of say $50,000
4. The loan can be repaid at any time, when the borrower has excess earnings.
5. It will be a first charge on the sale or your property or CPF savings
6. The CPF savings cannot be withdrawn for investments, while there is an outstanding relief loan

The relief loan will help the affected person to pay the mortgage and carry on the daily life with dignity. This facility will provide the assurance for the employed people to carry out their daily life without cutting back on their expenditure drastically, although they are expected to be more careful and frugal. They will follow SM Goh's advice to continue to spend and keep the economy moving.

If mortgages continue to be paid, the property values will be somewhat protected. The fall will be modest. The lower price will encourage other people to buy properties.

How does the Government manage the task of assessing and approving these relief loans? I suggest that they outsource it to the banks and the financial adviser firms, who will carry out the assessment to the expected standard in return for an agreed fee. They have many representatives who can be retrained to process these relief loans. It will create useful jobs for these representatives.

This concept is especially relevant to Singapore, as we do not have any unemployment benefit. A relief loan can be a good alternative to help the affected people.
Posted by Tan Kin Lian at 8:39 AM

 

[Ah Hai]

Tuesday, November 18, 2008
Comment on statement by Minister of Finance
Comments posted by ming in CNA Forum:
On a case-by-case basis, with a breezy wave of his hand like some Jedi knight the Minister for Finance wants the crowds at Hong Lim now gathering in strength to disperse. Have faith in the MAS. As the former Managing Director of MAS, Tharman would be in the position to tell us that MAS can be your advocate, prosecutor, judge and juror because they are staffed by so many talented and handpicked scholars. It is superior and efficient because everything is fused into one body just like Singapore.

Let the scales fall from your eyes and you will see that the trust which so many Singaporeans have placed in this system is unjustified. We have been fooled by the decades of prosperity and lulled into believing that obedience is all that is needed to perpetuate the good life. Those who remember their duties as citizens are called mad and suffer the indignity of ostracism. But when the reality hits and you realize that the system is not right, and by virtue of having awakened you become mad, the colossal blunder we have made as a people will chill you to the bone.

Note to the Minister of Finance:
Unless people like Tan Kin Lian are included in an independent investigation to be conducted by a special body that is separate from any governmental group because the investigation must cover how these products were regulated, no one will accept what is concluded. If you want closure Tharman, do the right thing. As the putative Prime Minister, I urge you now to set our country on the course to long term peace and prosperity. As a citizen and a member of the Cabinet, you swore oaths that you would. Now I ask that you make good on it.

http://forum.channelnewsasia.com/viewtopic.php?p=2387433#2387433
Posted by Tan Kin Lian at 12:02 PM

 

[Ah Hai]

Wednesday, November 19, 2008
Reply to Chua Sheng Yang
18 November 2008

The Editor
Forum Page
Straits Times

I refer to the letter entitled “Questions on investment products rally” by Chua Sheng Yang (Straits Times, 18 Nov 2008).

I organize the fifth rally on 15 November for the purpose of updating the investors on the status of the three petitions that were sent to the Monetary Authority of Singapore. The text of my speech can be found in my blog, www.tankinlian.blogspot.com.

I did not organize the rally for the purpose of promoting The Online Citizen, as suggested by Mr. Chua.

I do wish to acknowledge the coverage given by The Online Citizen and other online blogs. They help to bring my messages to the investors who were not able to attend the events at Speaker’s Corner.

The first petition, signed by 983 investors and submitted on 9 October 2008, asked the Government to carry out an independent investigation to find out if there were any wrong doings by the financial institutions that created and marketed these credit linked securities and, if there were, to take appropriate action under the law. Specifically, the investigation should look at possible breaches under section 199 of the Securities and Futures Act and section 27 of the Financial Adviser’s Act.

Mr. Chua asked me to state if the people, who are neither elderly nor uneducated, should be entitled to their money back. In my view, all investors who have been misled into these securities through mis-representation and mis-selling (if proven by the findings) should be fairly compensated, regardless of their age and educational level.

I do not expect the Government to reimburse the investors for the financial loss. I only urge the Government to help the investors to get fair compensation for their loss from the financial institutions. I do not expect the compensation to be in full, as the investors have to bear some responsibility.

Several articles, written by journalists and university professors, have been printed in the newspapers explaining the high risk of these securities and how the investors could have been misled. I wonder why people like Mr. Chua choose to ignore them. I can only recall the saying, “None are so blind as those who will not see the truth”.

Mr. Chua made a personal attack on my character in the last three paragraphs of his letter. I am surprised that your newspaper found it fit to print these unsubstantiated remarks, as they are not relevant to the main issue. I shall not respond to them.

Tan Kin Lian