View more on these topics

Singapore firms face structured products ban

The Singapore Monetary Authority has banned ten institutions from selling structured notes after they dealt in products linked to Lehman Brothers.

The country’s central bank (MAS) has imposed bans on the Singapore branch of ABN AMRO Bank, DBS Bank and eight other institutions for the sale of structured notes, ranging from six months to a minimum of two years.

The move follows a report made by the bank into the financial institutions that distributed the notes.

It found inconsistent risk warnings stated in some of their prospectus and pricing statements and insufficient training of financial advisory representatives for the marketing and sale of notes.

The report also identified weaknesses in the way some of the financial institutions equipped financial advisory representatives with accurate and complete information about the notes.

The central bank has issued formal directions for the institutions to rectify all weaknesses identified and to review and strengthen all internal processes and procedures for the provision of financial advisory services across all investment products.

The financial institutions will be required to appoint an external person approved by MAS to review their action plan and report on implementation.

MAS deputy managing director for market conduct Shane Tregillis says: “MAS’ investigations have been thorough and objective. Based on our investigation findings for each financial institution, MAS has taken appropriate regulatory action. The industry as a whole needs to carefully reflect on these findings, take immediate steps to win back the trust and confidence of their customers and prevent similar problems from emerging in the future.”

Recommended

Fresh out of shame

The principle of leaning against the cycle is easy to agree. For some reason, this sentence, taken from Alastair Darling’s statement to the House of Commons on reforming financial markets, worries me – and I don’t think it is just because it appears that the Chancellor is borrowing soundbites from fortune cookies or possibly cryptic crossword clues in The Times.

Artemis Global Income: Making sense of global markets

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com