I REFER to last Friday's column by Ms Chua Mui Hoong, 'Lehman saga shows need for a consumer body'.

When the Lehman saga first broke out, Case prepared a press statement calling on banks to respond to calls for compensation for consumers misled by unfair sales or marketing practices. However, we noted that the Monetary Authority of Singapore, as the regulatory body of financial institutions (FIs), had already directed the FIs to behave responsibly and the Fls had responded positively. Hence any statement by Case would have stated the obvious and be unnecessary.

We decided instead to focus on providing direct advice and assistance to those who came to us. Among other things, we explained the various options available to seek redress, particularly to file cases with the Financial Industry Dispute Resolution Centre, which Case set up jointly with the Life Insurance Association, the General Insurance Association of Singapore and the Association of Banks in Singapore. Thus far we have talked to investors who have sought our help.

The announcements by the banks that they would expedite the resolution of cases involving vulnerable investors is a positive development. The banks must likewise address the concerns of all affected investors.

As Ms Chua pointed out, Case has on several occasions in the past pushed for financial services and products to be included under the Consumer Protection and Fair Trading Act and for an ombudsman to investigate misconduct in the financial industry. The Lehman saga provides the impetus for Case to push harder.

Yeo Guat Kwang
President
Case

This article was first published in The Straits Times on October 28, 2008.