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SINGAPORE : Three independent parties have been appointed to oversee the complaints and resolution process for Singapore investors who bought structured products with exposure to troubled banks Lehman Brothers and Merrill Lynch.
These investors have complained to the Monetary Authority of Singapore (MAS) that financial institutions did not fully inform them of the risks associated with the instruments.
The products include DBS High Notes 5, Lehman Minibonds and Merrill Lynch Jubilee Series 3 LinkEarner Notes.
The central bank has identified three well-respected individuals to oversee complaints handling and resolution processes for these products.
They are former managing director and CEO of the Overseas Assurance Corporation Law Song Keng, National Kidney Foundation chairman Gerard Ee, and former Member of Parliament and Justice of the Peace Hwang Soo Jin.
They will be appointed by the financial institutions, which include DBS Bank, Maybank, Hong Leong Finance, OCBC Securities and Phillips Securities.
OCBC Securities, DBS and Maybank have told Channel NewsAsia that they will be paying the engagement fees of their independent reviewers.
Mr Ee told MediaCorp's TODAY newspaper that the independent parties will negotiate their fees with the financial institutions.
He said: "We understand the situation; we are not going out to charge very high fees. We are very mindful of this question of whether we'll be influenced or not... It's an insult for anyone to think that we could be so easily influenced by what we are going to be paid."
The independent parties will review the internal complaints, handling and resolution processes of the financial institutions to determine whether these are independent, fair and transparent. They will not be personally involved in individual complaints.
Investors who are still not satisfied with the review process can have the complaint referred to the Financial Industry Disputes Resolution Centre for mediation or adjudication
MAS said in light of the current financial turmoil, it will undertake a review of the marketing and sale of structured products.
It will also review aspects such as stronger suitability requirements for certain products, and clearer product labelling and risk rating. - CNA /ls
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