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    Minibond Compensation Analysis

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    osplmailbox7500
    1. The document summarizes compensation data for investors in minibonds. 87% of complaints came from banks while 13% came from stockbroking firms. However, banks compensated 75% of complainants while stockbroking firms only compensated 13%. 2. It questions why there is such a large discrepancy in compensation rates between banks and stockbroking firms for a product that was advertised and sold through both types of vendors. If the product was toxic, all victims should be compensated regardless of where they purchased it. 3. It suggests that besides unsuspecting investors, distributors and financial regulators should also bear responsibility for allowing a complex and risky financial product to

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    Minibond Compensation Analysis

    Uploaded by

    osplmailbox7500
    75 views1 page
    1. The document summarizes compensation data for investors in minibonds. 87% of complaints came from banks while 13% came from stockbroking firms. However, banks compensated 75% of complainants while stockbroking firms only compensated 13%. 2. It questions why there is such a large discrepancy in compensation rates between banks and stockbroking firms for a product that was advertised and sold through both types of vendors. If the product was toxic, all victims should be compensated regardless of where they purchased it. 3. It suggests that besides unsuspecting investors, distributors and financial regulators should also bear responsibility for allowing a complex and risky financial product to

    Original Description:

    The is an analysis of the compensation to Minibond Investor after MAS announcement in Singapore.

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    1. The document summarizes compensation data for investors in minibonds. 87% of complaints came from banks while 13% came from stockbroking firms. However, banks compensated 75% of complainants while stockbroking firms only compensated 13%. 2. It questions why there is such a large discrepancy in compensation rates between banks and stockbroking firms for a product that was advertised and sold through both types of vendors. If the product was toxic, all victims should be compensated regardless of where they purchased it. 3. It suggests that besides unsuspecting investors, distributors and financial regulators should also bear responsibility for allowing a complex and risky financial product to

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    75 views1 page

    Minibond Compensation Analysis

    Uploaded by

    osplmailbox7500
    1. The document summarizes compensation data for investors in minibonds. 87% of complaints came from banks while 13% came from stockbroking firms. However, banks compensated 75% of complainants while stockbroking firms only compensated 13%. 2. It questions why there is such a large discrepancy in compensation rates between banks and stockbroking firms for a product that was advertised and sold through both types of vendors. If the product was toxic, all victims should be compensated regardless of where they purchased it. 3. It suggests that besides unsuspecting investors, distributors and financial regulators should also bear responsibility for allowing a complex and risky financial product to

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
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    Download as pdf
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    Summary of Compensation for Minibond Investors

    Banks Stockbroking Banks Stockbroking Total


    Total no of complaint decided 87% 13% 3606 535 4,141
    Analysis % % No. of complaints
    Full compensation 34% 1% 1,226 5 1,232
    Partial compensation > 50% 25% 2% 902 11 912
    Partial compensation < 50% 16% 10% 577 54 631
    Compensated 75% 13% 2,705 70 2,775
    NO COMPENSATION 25% 87% 902 465 1,368

    QUESTIONS
    1. Why is there such a LARGE discrepancies [6 times] between the no of investors compensated between brokerages and
    banks?
    2. When a product is advertised in the News media available for sales in various vendors, why is some customers
    penalized in compensation just because they bought from a particular group of vendors? If the product is toxic,
    shouldn't victim be compensated regardless of where they bought the product?
    3. Is it an fair to say that besides unsuspecting Investors, Distributors and Financial Regulator should bear part of the
    responsibilities for allowing a Complex and Risky financial product be sold to retail investors WITHOUT Proper Advice
    as to the nature of the product?
    4. If Securities firms are allowed to claim that they are Over-The-Counter order executors, is there an oversight by the
    financial regulator in allowing this method of distribution of a complex financial product and bear part of the responsibilities?
    5. Is it fair for investors to expect Securities Firms to hightlight to them that they are just Order Executor at the point of sales
    and advices given by their Alternate Investment Specialist on the product CANNOT be relied upon by their customers?

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