The Online Citizen, 22 Sep 2008, Tan Kin Lian
"Two months ago, the New York State Attorney took action against several financial institutions for marketing the "auction rate securities" to retail investors on the representation that they are liquid investments and can be redeemed at any time.
During the liquidity crisis, these securities could not be redeemed. The financial institutions had to buy back these securities at no loss to the investors.
I hope that the Monetary Authority of Singapore or the Attorney General can take similar action on behalf of retail investors in Singapore, who had been misled into investing in the Mini-Bonds and similar structured products. These investors were clearly misled by the relationship managers into investing in these products on the advice that these investments were safe.
It is time to hold the financial institutions accountable for their mis-selling activities and for our regulators to be pro-active."
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