OFFICIALS from the Monetary Authority of Singapore (MAS) have run spot checks on financial institutions that sold Lehman-linked products to ensure investors' complaints are handled properly. The on-site visits, conducted in consultations with the three independent parties overseeing the complaints process, appeared to be largely encouraging.

The MAS said it was satisfied that all 10 institutions are reviewing complaints based on 'principles of fairness rather than taking the strict legal position they would if the matter went to court'.But it has asked 'a few' institutions to increase their resources, including engaging external firms to help existing staff deal with the mounting cases.

The MAS has also urged those institutions that have already reached provisional decisions on cases to conduct a final once-over before informing investors.It says the additional step of due diligence would ensure that the institutions have taken all factors into account. They may include feedback from the independent parties and issues uncovered during MAS' own investigation into the debacle.


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