The fallout from the Lehman Brothers-linked Minibonds has already affected about 10,000 Singaporeans, who invested about $501 million in them. It is a pity to see so many retirees, some of who are not well-educated, losing their hard-earned savings.
The Monetary Authority of Singapore's (MAS) managing director, Mr Heng Swee Keat, offered some comfort and assurance when he said: 'We are focusing on cases of misselling to vulnerable customers and on cases where the products were clearly inappropriate for them, given the circumstances.'
However, the issue reflects a lack of stringent surveillance and control of the financial-services sector, and measures to curb improper sales tactics of local banks' relationship managers.
Hence, it is important that MAS establish a watchdog mechanism or independent panel to curb unethical sales practices.
They should also examine the transparency of each financial structured product intended for retail, and ensure that they are minimum-risk before launching them publicly.
The authorities should also consider taking legal action to deal with whoever breaches the law and, most importantly, each complaint should be handled compassionately and with consideration.
