HOW INVESTORS IN LEHMAN MINIBOND NOTES, DBS HIGH NOTES 5 AND MERRILL LYNCH JUBILEE SERIES 3 LINKEARNER NOTES MAY RESOLVE THEIR COMPLAINTS

If you have invested in the Lehman Minibond notes, DBS High Notes 5, or Merrill Lynch Jubilee Series 3 LinkEarner Notes, and feel that you have been mis-sold these products, you should take the actions outlined below to resolve your complaint with your financial institution. This is a serious and impartial process that MAS has put in place for you. 

For cases where there are sufficient indications that the product was mis-sold or that it was clearly inappropriate given the investor’s profile and circumstances, MAS has stated that the financial institution (FI) should take responsibility. In addition, MAS has asked FIs to give priority to reviewing those cases involving vulnerable customers where the products are clearly inappropriate for them given their circumstances. Regardless of whether your case falls into this group, MAS requires FIs to have a rigorous process to look into every complaint of mis-selling and resolve them fairly.

STEP 1:   LODGE YOUR COMPLAINT DIRECTLY WITH THE FI THAT SOLD YOU THE PRODUCTS

You should contact the FI that sold you the product to lodge your complaint. You can do so by phone, email, letter or a visit to the FI. Click here  for a list of contact details.

The FI should acknowledge receipt of your complaint within two working days, and arrange for you to be interviewed within two weeks of acknowledgement.

Even if you have already written to your Member of Parliament, MAS or signed a petition to the Government, you will need to lodge your complaint with the FI. 

STEP 2:  PROVIDE FULL DETAILS OF YOUR CASE TO THE FI TO ALLOW THE FI TO MAKE FAIR ASSESSMENT OF YOUR CASE

The FI will interview you to find out the details of your case. The FI is required to help you prepare a written statement. A copy of this statement will be furnished to you when completed.    

You may also provide your own statement setting out the facts of your case, including how the sales transaction took place. Your statement will be given careful and due consideration, regardless of whether or not the statement was given under oath. 

As the facts and circumstances for each individual case will be different, you should give the actual details of your particular factual situation when making your statement rather than general descriptions. Standard form letters will not be helpful since you need to set out your own specific factual situation in your own words for a proper assessment to be made of your complaint.
 
The FI has set up an internal review panel chaired by its CEO. The panel will conduct a thorough review of your complaint and decide on a course of action.

STEP 3:  ACCEPT THE DECISION OF THE FI OR REFER YOUR COMPLAINT TO FIDReC

Within 4 weeks of your interview, the FI will contact you to let you know its intended course of action on your complaint. 

If you are not satisfied with the FI’s decision, you may choose to refer your case to FIDReC. If you do so, the information that you had earlier provided to the FI will be given to FIDReC, under a fast-track process arranged by MAS with FIDReC. The FI can assist to refer your case to FIDReC. You can also approach FIDReC on your own.

Should you decide to refer your case to FIDReC, any proposal offered by the FI may no longer be available to you. You must keep in mind that the outcome from the FIDReC process may be more, or less favourable.

At FIDReC, if the matter cannot be resolved by agreement between you and the FI, it will be referred to adjudication. You will pay a $50 fee while the FI pays a substantially higher amount. 

FIDReC’s adjudicators include retired judges, lawyers including senior counsel and retired industry professionals. The chairman of FIDReC is Mr Goh Joon Seng, a retired High Court judge. 

FIDReC will consider the merits of your case, including all relevant evidence (both written and oral) presented by you.  
 
The decision of FIDReC is binding on the FI, but not on you. If you are dissatisfied with the outcome, you may pursue other options including legal action.

While FIDReC normally deals with claims not exceeding S$50,000, most FIs have agreed to allow FIDReC to hear claims above $50,000 on a case-by-case basis. A few FIs have agreed to allow FIDReC to adjudicate all claims up to $75,000.

For information on key things to note about the FIDReC dispute resolution processes, please click here.

FIDReC’s contact details are:
Tel: 6327-8878
Fax: 6438-1523
Email: fcc@fidrec.com.sg
Address: 112 Robinson Road #13-03, HB Robinson, Singapore 068902
Website: www.fidrec.com.sg