THE Monetary Authority of Singapore (MAS) has decided against following Hong Kong's lead in requiring banks to buy back Lehman Brothers-linked Minibonds at market price from investors.
MAS managing director, Mr Heng Swee Keat, told reporters at a media conference yesterday that one of its key priorities now was to ensure that HSBC Trustee, the trustee for the Minibond programme, carefully considers all options and acts in the interests of investors.
He said that the trustee, which is now working on finding a new swap counterparty to replace collapsed Lehman in the programme, was already acting on the requests of investors who had submitted a petition to the MAS on Sept 24.
If a new swap counterparty is found, investors will be given the opportunity to vote on this option, he said.
Such an option raises the possibility that investors might eventually get some of their money back.
In the meantime, the MAS will also appoint an independent financial adviser to assist investors in making an 'informed decision'.
'Many individuals who purchased structured products linked to Lehman Brothers are worried about their investments,' said Mr Heng.
'MAS has been actively working to ensure a fair resolution for these investors...Our first priority has always been to help affected investors.'
Last week MAS disclosed that 8,000 retail investors had spent a total of $375 million on the Minibond programme.
Yesterday, Hong Kong Association of Banks chairman He Guangbei said that banks said they will buy back Minibonds from investors in the territory at 'market value' as proposed by the Hong Kong government.
An independent financial adviser was also appointed to handle the buyback process, including the valuation of toxic structured products that have been the bane of many disgruntled retail investors both in Hong Kong and Singapore where nine banks and financial institutions had distributed Minibonds.
Investors in the product in both markets have protested in recent weeks demanding compensation.
Many claimed they were told that Minibonds were a low-risk product when they were in fact complex derivatives which many did not fully understand.
Last week, the MAS had also announced that HSBC Trustee had informed the central bank that that 'a few financial institutions are currently considering taking on (the) role' of the swap counterparty and should there be a firm offer from an appropriate party, the trustee would seek the necessary approval from investors.
Mr Heng said the MAS expects the trustee to know whether options will be available to Minibond investors by the end of next week
MAS managing director, Mr Heng Swee Keat, told reporters at a media conference yesterday that one of its key priorities now was to ensure that HSBC Trustee, the trustee for the Minibond programme, carefully considers all options and acts in the interests of investors.
He said that the trustee, which is now working on finding a new swap counterparty to replace collapsed Lehman in the programme, was already acting on the requests of investors who had submitted a petition to the MAS on Sept 24.
If a new swap counterparty is found, investors will be given the opportunity to vote on this option, he said.
Such an option raises the possibility that investors might eventually get some of their money back.
In the meantime, the MAS will also appoint an independent financial adviser to assist investors in making an 'informed decision'.
'Many individuals who purchased structured products linked to Lehman Brothers are worried about their investments,' said Mr Heng.
'MAS has been actively working to ensure a fair resolution for these investors...Our first priority has always been to help affected investors.'
Last week MAS disclosed that 8,000 retail investors had spent a total of $375 million on the Minibond programme.
Yesterday, Hong Kong Association of Banks chairman He Guangbei said that banks said they will buy back Minibonds from investors in the territory at 'market value' as proposed by the Hong Kong government.
An independent financial adviser was also appointed to handle the buyback process, including the valuation of toxic structured products that have been the bane of many disgruntled retail investors both in Hong Kong and Singapore where nine banks and financial institutions had distributed Minibonds.
Investors in the product in both markets have protested in recent weeks demanding compensation.
Many claimed they were told that Minibonds were a low-risk product when they were in fact complex derivatives which many did not fully understand.
Last week, the MAS had also announced that HSBC Trustee had informed the central bank that that 'a few financial institutions are currently considering taking on (the) role' of the swap counterparty and should there be a firm offer from an appropriate party, the trustee would seek the necessary approval from investors.
Mr Heng said the MAS expects the trustee to know whether options will be available to Minibond investors by the end of next week
