By Francis Chan

INVESTORS standing confused at the crossroads of the complaints resolution process of Lehman Brothers-linked structured products can now get more help.

The Securities Investors Association of Singapore (Sias) has said it is opening its doors to investors who need advice on their next course of action as the resolution process begins to come to a close.

'Sias will be prepared to meet with investors who feel they require some guidance on the various alternatives available to them in the event they do not wish to accept the offer from the financial institutions,' said Sias president David Gerald.

Sias will also organise group advisory sessions for its legal advisers to field questions from investors, if there is interest.

According to Sias, many investors will now have to decide whether to accept the financial institutions' decisions, or refer their case to the Financial Industry Disputes Resolution Centre (Fidrec) or the courts. 'For investors who have been offered settlements by the FIs (financial institutions), Sias would advise these investors to consider...carefully before rejecting the offer,' said Mr Gerald.

He says investors must be aware that once the complaint is filed with either Fidrec or the courts, the FI is then entitled to withdraw its offer. 'Should an investor not succeed in his or her complaint at Fidrec or the courts, he or she will not be able to approach the FI to reinstate its earlier settlement offer,' he said.

And before the investor rejects the FI's offer, Sias says he needs to 'be sure that there are indeed merits for pursuing the matter either with Fidrec or in the courts'.

Mr Gerald also warned that decisions by Fidrec or the courts may not necessarily offer investors higher compensation.

The Monetary Authority of Singapore (MAS) says Sias' advisory is timely as a large number of investors who lodged complaints are hearing back from their FIs. 'This guidance will help investors make the right decision and bring about fair outcomes,' said Mr Shane Tregillis, MAS deputy managing director for market conduct. 'With the investors' interest in mind, MAS would like to urge investors to consider the points carefully before taking their case to Fidrec.'

Last month, MAS revealed that some 58 per cent - or 2,974 - of the complainants will get full or partial refund from the financial institution that sold them the products. Of these 2,974 people, 1,282 - or about 43 per cent - will be offered full compensation.

Ten financial institutions in Singapore sold over $660 million worth of Lehman- linked investments to more than 10,000 investors, who bought Lehman Minibonds, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 LinkEarner Notes.

This article was first published in The Straits Times on February 09, 2009.