| |
| |
![]() |
| |
|
| |
|
| |
|
SINGAPORE: There is still a glimmer of hope for investors who have bought structured products linked to troubled Lehman Brothers, according to a lawyer.
Leonard Loo said investors who claimed that they have been misled into buying these products can file a class action suit against the banks to recoup part of their investment.
It has been more than a year, but Ismail Deen still remembers the fateful day when he went to the bank.
The 59-year-old had wanted to invest his money in a low-risk portfolio, but the bank staff convinced him to buy Minibonds instead.
He said: "I told them to invest the money to the best of their ability, with very low risk because I cannot afford to take risks, I'm old. (The bank staff) did not explain to me in full what bonds were all about.
"My understanding of bond means government bond. So I knew government bonds are very safe. So when she assured me this bond was very safe, I took it to mean it was a government bond."
Ismail is one of the 983 affected investors who have signed a petition asking the Monetary Authority of Singapore (MAS) to investigate the sale of structured products.
Like most investors, all he hopes for is that something can be done to get his money back.
Lawyer Leonard Loo said: "These investors can sue the bank for misrepresentation. Usually, when there is a big group of investors who all claim they have been misrepresented by the bank and they've come together to sue the bank, this would be a good case to show that there was a certain pattern of behaviour by the bank to mislead the customers. So they stand a better chance.
"Their case will be strengthened if they can prove that the bank had used aggressive tactics or unfair ways to pressure them during the sale process, or that the bank had used financial documents that (had) been overstated or untrue."
For Ismail, this painful lesson taught him the importance of doing his homework before making any investment decision.
"If I can turn back time, I would never have invested my money into one basket. Do know your product, get a second opinion, ask around and do not sign until you're very sure."
According to lawyers, it is unlikely that investors will get their full capital back as their assets are worth considerably less now.
Consumers can also approach the Financial Industry Disputes Resolution Centre (FIDReC) to resolve their dispute with financial institutions. - CNA/vm
|
