A view: Investors should bear bigger responsibility

Dear Kin Lian,

How's the going? I just heard you are leading the charge on the minibond issue. Its a good issue to take up.

However, there is a catch in this whole issue which I may draw your attention to. Although the instruments' name such as High Note or minibond are pretty misleading (well, even for an financial economics trained person like me got the wrong idea at the first look), but investors who are invited to invest in such instruments should be sophisticated enough to look beyond the high return without questioning the risks involved. Thus in my view, the investors should bear bigger responsibility for their investment decisions. I mean, when they are making money, they would not share with others right? They would not even bother about how complicated the instruments are. But when the instruments go bust, on what basis could they demand compensation?

Misselling? Hmm... there would be a big debate here. I believe the financial institutions that sold these instruments should have their backsides all covered by disclaimers and such.

The only direction to go is investor education as well as taking MAS to task. MAS as a regulator, should know the risks involved. It should, as a regulator, makes specific demand on the financial instituition to highlight the all risks and implications involved in all the marketing tools and documented agreements, in BOLD and not in fine prints.

Maybe it would be good for you to raise these few points along with your present direction of fighting for the investors' interests at hand.

Regards

MS