"an 84-year-old woman and her mentally-ill son reached an
agreement with on a partial refund from DBS Group Holdings Ltd. (D05.SG) on
derivatives backed by Lehman, the South China Morning Post reported Friday,
citing the woman''s younger son."
agreement with on a partial refund from DBS Group Holdings Ltd. (D05.SG) on
derivatives backed by Lehman, the South China Morning Post reported Friday,
citing the woman''s younger son."
While it is good news that the bank is doing a PARTIAL refund for this case (i really wonder how partial is partial)
But it really makes me wonder how on earth can any banker or simply a human being bring themselves to sell a complex structured product to a 84 year old woman and a mentally ill son? How on earth did the bank's management allow such a sale? Isn't the age 84 years old already a super RED FLAG on the suitability of such a product to this person??
This is just one specific case that has surfaced and reached a conclusion but from what i've read so far, the incidences of gross act of alleged mis-selling to elderly folks by DBS seems quite rampant! The majority of the outcry comes from these elderly folks who, more likely than not, had no freaking idea what they were getting themselves into.
So for those who think this is a laughing matter that people shouldn't get "uptight" about it. Please have abit of compassion and empathy towards the plight of these people. Don't be naive and think this is just about money. The reason things have blown up to this proportion and the source of anger of most of these investors is because: TRUST WAS BETRAYED! The foundation of the banking industry is TRUST and INTEGRITY. (That is why people leave their monies in banks and not under their pillows).
Think about it. Every damn investment now (whether it's Unit Trust, Stocks, Currencies etc) would have seen the values halved or more but you don't see huge PUBLIC outcry and protest do you? Why this product in particular?
I'm not even a victim of this saga and yet i feel their pain not because money has been lost but more importantly the pain from the injustice of the trust betrayed.
Even if you don't wish to show that teeny tiny bit of compassion, the very least you could do is not rub salt to wound.
4 comments:
hmm i agree that the big hulabalu is not merely just money but confidence in general; particularly the vulnerable range of old age clients who are more susceptible to forceful sales tactics.
it is indeed quite sad to read that some of them still had hopes to get back their entire principal; which I feel it's quite unlikely.
but then again, everybody's entitled to their own freedom to voice out any personal opinions... all of us have to respect this fact. So relax and just learn to let go and let live ya, sunshine gal?
I've been aware of all these mis-selling nonsense as early as 2004 when I was in DBS PB. I've met too many top mgmt people and rms with really questionable integrity.
Eg. One of my colleague then. Sweet talked a client into investing $2m into a 10 year structured product. This particular client was paralyzed waist down after a bad car accident. Her husband left her shortly after and her parents are both very old. This $2m was actually from her insurance payout after the accident.
She was sold on the basis that it is a guaranteed note at maturity, which was true. BUT she was not told that if she were to do an early redemption, she could possibly suffer up to 60% loss of her capital.
As a responsible financial advisor, you would know that given her circumstances she needs liquidity more than anything else right? I mean she's sick and has no one to take care of her, the money should obviously be set aside for emergency use. So how can any decent human being suggest that she tie up her insurance money into a 10 year ILLIQUID product??
Anyway, like i said before. I know too much. With my economics background, I was curious as to how these products are structured so I started asking too much questions and got an investment banker to explain it to me. From then on, i knew how these products are engineered and I can tell you, these products are absolute rubbish and definitely not suitable for the man on the street.
Oh well, you're right though. No point getting angry cos in life one thing I believe in is retribution. And I think what we're seeing now happening to the banks is retribution at it's worse. So I no need to intervene la, God will! haha
the media has always painted a beautiful picture of personal financial advisors from banks and RMs so much so that many people had been brainwashed to believe they are always acting in the interests of the clients as compared to financial planners/insurance advisors.
this is obviously not the case as we are seeing from what is happening.
years ago when i was at ocbc bank located at alexandra doing my banking, i witnessed for myself a PFC selling an ILP product to an elderly woman. I estimate her to be at least 55 years of age or older.
being in the financial services industry myself, I know very well that an ILP is definitely not suitable for someone of that age group, yet the very PFC who had also taken his CMFAS modules 5, 9, or more could recommend that particular product.
what is the basis for recommendation? or rather, bluntly put, the basis for recommendation was the high sales quota that if achieved, would guarantee the PFC's place in the bank.
Mis-selling is not only limited to DBS. It will not be fair to just name DBS. Mis-selling is everywhere, so long as sales is involved. From the street peddlers to the RMs. Everyone. At the end of the day, it boils down to the conscious of the person.
Investors are the victims. Then how about the RMs who've been wronged? Customers who turn their back against their RM? Profile: 36 year old English speaking PB client who complains of not having enough investments with DBS. Invest everything with his eyes open and all original proper documents sent. Now cry foul and says doesn't know investment, low risk profile (yah right, is investing ST notes and currency trading with PB - low risk?) and DIDN'T RECEIVE ANY DOCUMENT ON THE INVESTMENT.
For this, how? This RM is now suffering from anxiety disorder, depression and now on MC for gastric flu. The RM wanted to help the client to gain some chance for compensation because the funds (it turned out later) belong to the family and client doesn't want to compensate out of his own pocket and so put up the case for review. Turned out it became a complain by the CUSTOMER of mis-selling!
How about the product folks who's now resigned, who sold the structure to the RMs? Who claimed 'ai ya, won't happen la!' during training? He's free from guilt too?
My point is, read both sides. Do not only see one side and just drill deep into it. Just because investors' money are lost and therefore they become a better victim. Before concluding something, read the content carefully, understand, then comment.
For those RMs or customers without conscious, they will get their retribution some day.
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