Comments by MAS Spokesperson on the Petition Received by MAS on 24 Sep 2008
Comments by MAS Spokesperson on the Petition Received by MAS on 24 Sep 2008:
MAS confirms that it has received a petition from a group of Lehman Minibond investors. We understand the concerns of investors and assure them that we are taking action on the issues raised in the petition.
The first issue raised is that of misrepresentation. MAS' priority is to ensure that consumers' complaints on misrepresentation are dealt with fairly and expeditiously. Financial institutions that sold the Minibond notes are now appointing independent third parties to oversee their handling of complaints arising from the sale of these notes and investigations into any mis-selling of these products. Referral to dispute settlement by the Financial Industry Disputes Resolution Centre (FIDReC) will be fast-tracked. Where there is clear evidence of regulatory breaches, MAS will hold the financial institution to account.
The second issue raised is the taking over of Lehman Brothers' role in the Minibond programme. We wish to reassure investors that we have reminded the trustee, HSBC Institutional Trust Services (Singapore) Pte Ltd that it is to act in the interest of investors. The trustee is considering various options available, which are not limited to liquidating the underlying securities. The trustee has also stated that replacement of the swap counterparty is a possibility, and has explained the challenges involved. We will continue to maintain contact with the trustee as it works towards the resolution of the notes. However, it would not be appropriate for MAS to require any particular institution to take over Lehman's role.