Financial institutions receive some 2,400 formal complaints

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SINGAPORE: The Monetary Authority of Singapore (MAS) said ten financial institutions have received some 2,400 formal complaints as of last Sunday, October 26.

These institutions had sold the DBS High Notes 5, Lehman Minibond programme notes and Merrill Lynch Jubilee Series 3 LinkEarner Notes.

In a statement, MAS said some of them have made good progress in resolving the complaints, while others need to put in more effort to speed up the complaints review.

MAS added that it is working with the institutions to ensure they are handling the complaints in a serious and impartial way. The central bank also reminded the financial institutions to reach a reasonable settlement for any mis-selling, regardless of the investors’ background.

The three independent parties appointed to oversee the complaints handling and resolution process have been keeping MAS updated.

They are former managing director and chief executive officer of the Overseas Assurance Corporation, Law Song Keng, National Kidney Foundation chairman Gerard Ee, and former MP Hwang Soo Jin.

All three said they are working closely with the financial institutions to ensure they give personal attention to all complaints. They also want to ensure that the complaints are handled in a transparent and prompt manner, giving priority to vulnerable investors.

Mr Law said: “The client profiles at ABN Amro, Hong Leong Finance and Maybank vary. Even within the same organisation, there are different types of investors who bought these products. The FIs recognise this, and are prioritising internally to deal with the vulnerable cases first.

“I am working with them to ensure that their senior management give personal time and attention to deal with all complaints fairly and swiftly. As the FIs are now moving to the review and resolution stage, I expect to spend more time on this aspect going forward.”

Mr Ee said: “I have been working with DBS to review some of the cases which did not meet the bank’s internal standards. I am glad that the bank has started to make settlements with affected customers.

“I will continue to work with DBS to ensure that all complaints meet the service standards set by MAS, and are handled in a prompt, equitable and thorough manner.”

Mr Hwang added: “There is no lack of diligence on the part of the stockbroking firms in making special efforts to put in place enhanced systems and processes in order to handle customer complaints promptly.

“However, it should be pointed out that their clientele and modus operandi are somewhat different from the other financial institutions.

“I am working closely with the stockbrokers and MAS to ensure that all complaints are handled in a fair and transparent manner with priority given to vulnerable investors.”

- CNA/so