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PM Lee says buyers of Lehman—linked products should seek resolution with banks first
XIAN, CHINA: Singapore Prime Minister Lee Hsien Loong has spoken for the first time on the issue of investors who have lost money over the Lehman structured products sold in Singapore.
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He said where there has been mis—selling or less than professional behaviour by banks’ relationship managers, the banks have to do what is right. He believes the banks are fully capable of resolving the issue. And, before investors explore other options, they should seek resolution with the banks first. Mr Lee was speaking to reporters in the western Chinese city of Xi’an where he wrapped up his five—day visit to China. "I think we have to look at the circumstances of the people who have lost money with minibonds or High Notes......where there has been mis—selling, it has to be put right; where there has been less than professional behaviour by the relationship managers, or it doesn’t measure up to the standards that MAS expects when you promote the financial product or when you advise somebody what to buy, then the banks have to do what’s the right thing to do," said Mr Lee. He feels the banks and financial institutions have every incentive to make sure their customers are treated fairly. Mr Lee said: "If you do the right thing, your customers will remember you for a long time; if you do the wrong thing, your customers will also remember you for a long time and potential customers will remember you for a long time."
In addition, Mr Lee said, even if investors are not happy with the banks’ process, they can go to FIDRec, the Financial Industry Disputes Resolution Centre. And if they are still unhappy, they can go to the courts. Prime Minister Lee said that it was understandable that some investors had reacted emotionally as they had lost their money in a sudden and unexpected manner, while others felt that the risks had not been adequately explained to them. He said Singapore should stand back and take a look at the way it approaches the issue of individuals investing their money. One way is to say that the government knows best. "I think this is a very difficult and not very satisfactory way in the long run. First of all, government should not be making decisions for individuals; individuals should have the right to decide for themselves, their circumstances, their preferences, their needs. And secondly, the government is not in a position to guarantee what is safe and what is not safe because there is nothing which is 100 per cent safe," he said. Prime Minister Lee said the government’s role is to make sure that the financial system proceeds fairly and properly, not to guarantee the outcome but to make sure that its people know what they are doing. For the investors, this would mean that they are properly educated and understand the products they buy and their rights as consumers.
— CNA/ir
XIAN, CHINA: Singapore Prime Minister Lee Hsien Loong has spoken for the first time on the issue of investors who have lost money over the Lehman structured products sold in Singapore.
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He said where there has been mis—selling or less than professional behaviour by banks’ relationship managers, the banks have to do what is right. He believes the banks are fully capable of resolving the issue. And, before investors explore other options, they should seek resolution with the banks first. Mr Lee was speaking to reporters in the western Chinese city of Xi’an where he wrapped up his five—day visit to China. "I think we have to look at the circumstances of the people who have lost money with minibonds or High Notes......where there has been mis—selling, it has to be put right; where there has been less than professional behaviour by the relationship managers, or it doesn’t measure up to the standards that MAS expects when you promote the financial product or when you advise somebody what to buy, then the banks have to do what’s the right thing to do," said Mr Lee. He feels the banks and financial institutions have every incentive to make sure their customers are treated fairly. Mr Lee said: "If you do the right thing, your customers will remember you for a long time; if you do the wrong thing, your customers will also remember you for a long time and potential customers will remember you for a long time."
In addition, Mr Lee said, even if investors are not happy with the banks’ process, they can go to FIDRec, the Financial Industry Disputes Resolution Centre. And if they are still unhappy, they can go to the courts. Prime Minister Lee said that it was understandable that some investors had reacted emotionally as they had lost their money in a sudden and unexpected manner, while others felt that the risks had not been adequately explained to them. He said Singapore should stand back and take a look at the way it approaches the issue of individuals investing their money. One way is to say that the government knows best. "I think this is a very difficult and not very satisfactory way in the long run. First of all, government should not be making decisions for individuals; individuals should have the right to decide for themselves, their circumstances, their preferences, their needs. And secondly, the government is not in a position to guarantee what is safe and what is not safe because there is nothing which is 100 per cent safe," he said. Prime Minister Lee said the government’s role is to make sure that the financial system proceeds fairly and properly, not to guarantee the outcome but to make sure that its people know what they are doing. For the investors, this would mean that they are properly educated and understand the products they buy and their rights as consumers.
— CNA/ir
