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Retiree sues UOB over high-risk investment losses

makapaaa

Alfrescian (Inf)
Asset
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Retiree sues UOB over high-risk investment losses
</TR><!-- headline one : end --><TR>He loses $350k, says risks not explained; bank denies his claims </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Selina Lum
</TD></TR><!-- show image if available --></TBODY></TABLE>




<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->A 69-YEAR-OLD retiree, who lost more than $350,000 in high-risk investments, has sued United Overseas Bank (UOB) and his relationship manager for selling him the products.
In May, Mr Go Sua Kui, a Privilege Banking customer of UOB, put $2.5 million into equity-linked notes at a 12.8 per cent yield.
But he ended up having to sell the shares at a loss when his investment matured in June.
Mr Go has sued UOB and 28-year-old relationship manager (RM) Yeo Beng Hee for misrepresentation, negligence and breach of duty under the Financial Advisers Act. Both UOB and Mr Yeo deny the allegations.
This is believed to be the first case involving the statutory duty of financial advisers set out in the Act.
Although the investments are not connected to the collapse of Lehman Brothers, this case is expected to be of great interest to investors who stand to lose money from products linked to the bankrupt American investment bank.
Mr Go filed his lawsuit in the High Court on Oct 3; UOB and Mr Yeo filed their defence on Wednesday.
Mr Go said that Mr Yeo made an appointment to meet him in April to introduce himself as his new RM.
At the meeting, a risk profile was done that put him in the conservative category. But he claimed Mr Yeo recommended that he invest in equity-linked notes without explaining the risks.
Mr Go first invested $250,000 in equity-linked notes that have since matured. He is still holding those shares.
Within a month, he put in another $2.5 million in a second product.
Mr Go said the RM told him that the second product was a safe investment, that his principal would be protected, and that he would not suffer a loss.
He now wants both transactions to be revoked and to get back the loss from the second investment.
But the defendants painted Mr Go, who used to be a property developer, as an experienced investor who bought stocks and had previously put $600,000 into funds in the medium- to high-risk class.
Mr Yeo claimed that it was Mr Go himself who had expressed interest in equity-linked notes. He maintained that he had explained the workings of the product and denied making the representations.
[email protected] <!-- end of for each --><!-- Current Ratings : start --><SCRIPT language=javascript> addRatingPortion() </SCRIPT>
 

singveld

Alfrescian (Inf)
Asset
no chance he will win

gov draw up laws to help the banks and stock market to generate wealth for the country.

gov will continue to support the banks.

so no individual will win.
 

theblackhole

Alfrescian (InfP)
Generous Asset
he is so rich. donate to the banks rightly so. sue what. surely kena pay damages one lah.just keep quiet. cash out and spend the millions happily lah. sue sue sue your head lah. got so much money and still so greedy. give me some lah. i so poor can also be so happy. come go eat $2 laksa and $2 beehoon soup. so happy eating all these with my meagre allowances from our benevolent gahment. this fella with so much money is so unhappy. sue sue sue sue your head lah!
 

masgnoeL

Alfrescian
Loyal
he is so rich. donate to the banks rightly so. sue what. surely kena pay damages one lah.just keep quiet. cash out and spend the millions happily lah. sue sue sue your head lah. got so much money and still so greedy. give me some lah. i so poor can also be so happy. come go eat $2 laksa and $2 beehoon soup. so happy eating all these with my meagre allowances from our benevolent gahment. this fella with so much money is so unhappy. sue sue sue sue your head lah!

Where you find $2 laksa and $2 beehoon soup? In school tuckshop, is it? :biggrin:
 

eErotica69

Alfrescian (InfP)
Generous Asset
<<<< "Mr Go, who used to be a property developer, as an experienced investor who bought stocks and had previously put $600,000 into funds in the medium- to high-risk class."


??? Need I say more?


eErotica69696969696969
 

theblackhole

Alfrescian (InfP)
Generous Asset
no need. he's a hardcore gambler and a loser.no sympathies at all. rich man must lose big big to gain an insight into his wealth which is all empty.
 

Merl Haggard

Alfrescian (Inf)
Asset
This retiree has got no case at all.

He bought ELN which pays very high interest, but in a bear market he's dead meat.

Old man is capitalising on the current situation to try to push his luck.

Good try old retiree!
 

borom

Alfrescian (Inf)
Asset
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>

</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->This is believed to be the first case involving the statutory duty of financial advisers set out in the Act.
But the defendants painted Mr Go, who used to be a property developer, as an experienced investor who bought stocks and had previously put $600,000 into funds in the medium- to high-risk class.

<!-- end of for each --><!-- Current Ratings : start --><SCRIPT language=javascript> addRatingPortion() </SCRIPT>

Assuming the report is accurate, defendants’ argument that Mr Go have bought medium to high risk investments before is not a good one.

If someone has bought high risk investments before, it does not mean that he will always be buying high risk products- he could have been " burnt" and become a conservative investor after that.


The FI and RM are supposed to advice customers to spread out their investments and not put all their eggs into one basket.

Most people are aware that it's an uphill battle for any individual to take on a FI and I applaud Mr Go for his guts .Hopefully this will make FI and their sales people be more prudent when pushing for sales of investment products- not everyone will just take it sitting down.
 

silverfox@

Alfrescian
Loyal
Mr Go has sued UOB and 28-year-old relationship manager (RM) Yeo Beng Hee for misrepresentation, negligence and breach of duty under the Financial Advisers Act. Both UOB and Mr Yeo deny the allegations.

But the defendants painted Mr Go, who used to be a property developer, as an experienced investor who bought stocks and had previously put $600,000 into funds in the medium- to high-risk class.

If he has proof that the RM Yeo Beng Hee on the pretext of closing the deal did misrepresent, then he will win the case.

So next time, make sure when go and listen to such product talk, make sure have it recorded. If anything happens, it can become very valid court evidence.

Lawyers are very good in grilling these people.
This will teach Banks and managers not to be too aggressive in their selling of such products.

When people paint Mr Go as an experienced investor, the context we are talking about is he is experienced in investing, but at that point of time, he could have asked for a safe portfolio to invest in and the manager could have promoted the high risk one instead.

Experienced investor doesn't mean know-all, it is what people assumed it as.
And an experienced investor doesn't mean cannot invest in safe portfolios. But just because of his past experience, he could have been misrepresented with a portfolio which was shown as being safe when it is actually not.

So unless he has evidence to prove Mr Yeo misrepresented, only then will he be able to win the case.
 

madmansg

Alfrescian
Loyal
the retiree stupid. When he sue uob , he already make a mistake. By investing 2.5 million , he fall under the category of HNW and thus financially savvy which means he can be sold ANYTHING by the bank and the bank wont be guildy.

UOB already got legal tight case as , before a single cents is put into any products , the investor already SIGN with OWN SIGNATURE all his claims against UOB !!

NS has damage retirees brain for him to invest in such products and also for him to think he can recover it.
 

Merl Haggard

Alfrescian (Inf)
Asset
This retiree has got no case at all.

He bought ELN which pays very high interest, but in a bear market he's dead meat.

Old man is capitalising on the current situation to try to push his luck.

Good try old retiree!

I'm quoted the following ELNs which are currently providing attractive yield:

1 ) ELN on Capitaland
Spot: 3.06 SGD
Strike : 2.75 SGD (90% strike)
Client yield: 16.77% p.a.
Tenor: 28 days

2 ) ELN on Wilmar
Spot: 2.70 SGD
Strike : 2.43 SGD (90% strike)
Client yield: 17.17% p.a.
Tenor: 28 days

3 ) ELN on Keppel Corp
Spot: 4.92 SGD
Strike : 4.42 SGD (93% strike)
Client yield: 15.43% p.a.
Tenor: 28 days

The interest rate payable is so attractive and if I go in, I go in fully aware that I've the 10% price difference to my advantage.

If the market falls and the strike price or lower reached at the end of 28 days, I pick up the shares together with the interest
as quoted.

If the share price falls further, I just can't imagine how I can go and sue my banker. This retiree will end up having to pay for
defendant's legal cost.

 
Last edited:
Z

Zombie

Guest


The interest rate payable is so attractive and if I go in, I go in fully aware that I've the 10% price difference to my advantage.

If the market falls and the strike price or lower reached at the end of 28 days, I pick up the shares together with the interest
as quoted.

If the share price falls further, I just can't imagine how I can go and sue my banker. This retiree will end up having to pay for
defendant's legal cost.


This is like a put option.
 

Merl Haggard

Alfrescian (Inf)
Asset
This is like a put option.

I don't think so. Go in only if you're prepared to pick up the shares if strike price is met.
Instead of buying at current market price, one buys at lower price plus sweetener of high
interest yield.

Min investment amount for each ELN is USD250,000.

Old retiree is a bad loser and he is taking advantage of the current situation to try his luck.
 
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