MAS NOTIFIES CHEONG SU YEEN OF DISSATISFACTION WITH HER PAST PERFORMANCE

1 On 14 June 2010, MAS notified Cheong Su Yeen, formerly a financial adviser’s representative of DBS Bank Ltd (“DBS”), that it was not satisfied as to the record of her past performance in providing financial advisory service as a financial adviser’s representative.

2 DBS is licensed as a bank under the Banking Act (Cap. 32). It is exempted from holding a financial adviser’s licence in Singapore in respect of any financial advisory service pursuant to section 23(1)(a) of the Financial Advisers Act (Cap 110).

3 In April 2007 Ms Cheong recommended to clients structured notes linked to Lehman Brothers that were issued by DBS ("HN5") on the basis that the clients had understood the features of the product. However neither the clients’ education, employment status and investment background supported this conclusion.

4 The clients concerned are:

• A 58 year-old housewife who has no formal education, does not speak or read English and had not previously invested with DBS in products of similar features as HN5;

• A 47 year-old housewife who did not complete her primary school education in the Chinese language-medium, does not speak or read English and had previously invested with DBS in only capital guaranteed or protected financial products; and

• A 61 year-old retiree and his wife, a 57 year-old factory operator. Both have received Chinese language-medium education, do not speak or read English and had previously invested with DBS in only products risk-rated as “Conservative”.

5 MAS views Ms Cheong’s performance as unsatisfactory. Ms Cheong has since left the financial industry and ceased to provide financial advisory services. MAS has notified Ms Cheong that had she continued to provide financial advisory services as a representative, MAS would have issued an order prohibiting her from providing any financial advisory service and from providing any financial advisory service by taking part, directly or indirectly, in the management of any financial adviser in Singapore for one year.