Legal action on Credit Linked Notes

Several investors had received the rejection letters on their claims for compensation. They have been disappointed at the outcome, after waiting for several months. They felt that they were unfairly treated and are keen to take collective legal action now.

A few legal teams have been organised. Before you decide to join any collective action, you should get answers to the following questions:

1. What are the legal grounds proposed by the lawyer to pursue the claim for compensation?

2. What are the chance of winning based on the strategy proposed by the lawyer? Why and how?

3. What are the terms of engagement of the lawyer? 

Terms of engagement

a)  What is the initial amount payable

b) What are the estimated payments for the various stages of the case?

c)  What are the actual charges to be paid to the lawyers

d) Is there a maximum cap on the legal fees and charges?

e) If the cases are settled earlier, will the participants get a refund of the unused fees?

Before you sign on the letter of appointment and write your cheque, you should attend a briefing to be given by the lawyer where all of the above points have been explained and accepted by you. If you are not sure, you should get the viwes of fellow participants and make your personal judgement.

FIDREC

You still have the option of getting your case adjudicated in FIDREC for a fee of $50. You can ask FIDREC to get the financial institution representative to complete this questionnaire, so that the adjudicator has the full facts on both sides to make an adjudication.