By Victoria Barker

AGE or education would not be a factor in deciding whether an investor is 'vulnerable' to being 'mis-sold' financial products.

An investor may have little formal education, but that does not mean he cannot be a successful or savvy businessman.

Trade and Industry Minister Lim Hng Kiang, who is also Monetary Authority of Singapore (MAS) deputy chairman, said this in Parliament yesterday.

His comments were made in response to Nominated Member of Parliament Siew Kum Hong, who asked how 'vulnerable investors' were handled in the wake of complaints by investors over Lehman Minibonds and the High Notes series of investment products.

All cases 'were carefully reviewed by the financial institutions using the same assessment framework as for all other complaints', Mr Lim said.

Giving an update, he said financial institutions have made good to the investors.

Last week, MAS said that 58 per cent of the 2,974 investors who had made complaints about Lehman Brothers Minibonds, DBS High Notes and Merrill Lynch Jubilee Series 3 LinkEarner Notes will receive compensation from the financial institutions that sold them the products.

Yesterday, Mr Lim said the dispute-resolution process was rigorous, and that the outcome was fair.

'Both the Consumers Association of Singapore (Case) and the Securities Investors Association (Singapore) (Sias) have said that they are supportive (of the process) and regard it as being in the best interest of investors,' he said.

As for the ongoing investigations being carried out by MAS, Mr Lim said they covered, among other issues, the financial institutions' due diligence when it came to the sale of structured notes and the training and supervision of relationship managers.

MAS will also be working with other parties, like Case and Sias, as well as tertiary institutions, to see what more can be done with regard to educating investors.

A review of the authority's present regulations is in progress, and a public consultation will be conducted by mid-March this year, he said.

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