Macau to discipline financial institutions if misconduct found in minibonds sale
14/10/2008 17:15
The Monetary Authority of Macau Special Administration Region (SAR) has
warned that if any misconduct of the financial institutions that distributed in
Macau the minibonds tied to the bankrupt Lehman Brothers Holdings Inc. is found,
the Authority will "take disciplinary actions" against them to protect the
investors.
Thousands of investors in Hong Kong have complained that they lost
heavily in the minibonds related to the Lehman Brothers, the hundred-year-old
global financial services firm, that filed for bankruptcy protection last month.
The minibonds were also sold in Macau through banks and other financial
institutions.
As of Oct. 10, 2008, the Authority in Macau has received a
total of 140 enquiries and 132 complaints, of which 52 cases were filed in
person while 80 in writing, according to the Authority, adding that 24 cases
were replied, 108 under verification, 18 in investigation, and one with
superficial evidence.
It said in a press release yesterday that it has taken
immediate follow- ups and formed two internal working groups respectively
responsible for receiving enquiries and complaints and for investigating the
complaints received, in the wake of the Lehman Brothers minibonds
incident.
In addition to following up on individual enquiries and complaints,
the Authority also claimed that it has required distributing institutions to
provide full information about the affected situation, maintain close contact
with the coordinating distributor and trustee in Hong Kong, conduct
self-assessment on the selling procedures and internal controls on distribution
of the minibonds, and submit self-assessment report to the Authority,
etc.
Prompted by protests from investors, the Hong Kong Monetary Authority
(HKMA) announced last Thursday it is investigating nine banks over the sales of
the Lehman Brothers minibonds, which some investors alleged to be coaxed by the
staff of the banks into buying. According to the HKMA, some 9,281 complaints
about the munibonds sales were received so far, of which 41 investigations were
opened.
HKMA Deputy Chief Executive Y.K. Choi told a recent news conference
that the regulator supports a proposal for banks to buy back the financial
structured products at market value, which would be less than what they were
sold for.
The distributing institutions in Macau have stated that they would
"follow suit in this regard", the Authority in Macau said.
Xinhua
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