THE Monetary Authority of Singapore (MAS) will review the marketing of structured investment products, after complaints that customers were misled into buying some products linked to now-bankrupt United States investment bank Lehman Brothers.
'While we consider MAS' current regime for marketing of investment products fundamentally sound, we will undertake a review in light of recent developments in Singapore and globally,' said the authority in a statement last night.
'Some areas we may need to review include stronger suitability requirements for certain types of products, clearer product labelling and risk rating, and simpler descriptions of the features and risks of products so that they can be more readily understood,' said MAS.
The regulator announced last week that financial institutions (FIs) which sold some products linked to Lehman will appoint independent parties to study the complaints.
The authority stressed that it will take firm and appropriate regulatory action where there are breaches of law or regulations by the FIs or their representatives.
Said MAS managing director Heng Swee Keat in the statement: 'We understand the high level of anxiety that investors of some structured products are feeling.
'Our immediate focus is on helping investors to get a quick and fair resolution of their complaints. We are committed to seeing that every case is properly looked into.'
MAS reassured investors who have bought DBS High Notes 5, Lehman Minibonds and Merrill Lynch Jubilee Series 3 LinkEarner Notes that their concerns are its immediate priority.
In discussion with the FIs concerned, MAS has identified three individuals - Mr Gerard Ee, Mr Law Song Keng and Mr Hwang Soo Jin - to oversee the relevant complaints-handling and resolution processes for these products.
MAS also urged all stakeholders to play their role, stressing that the board and senior management of FIs must foster a culture of ensuring fair dealing outcomes for their customers.
Meanwhile, consumers must also consider investment decisions carefully and understand the risks that they undertake, said the authority.
