There has been a report from the media etc that some banks are considering to compensate those who has lost their money in structured product especially those who are in the "vunerable" group like those below primary school education & above age 62. Here is what I think:

1. The compensation is obviously will come from shareholders. Money cannot be printed from thin air;
2. There is no need to compensate had the institutions done a proper job in their financial advisory process;
3. Looking at the huge number of victimes involved who had been mis-sold these products, it is not an isolated case but a systematic problem in the entire institution. That is to say that mispresentations and the lack of professionalism is a company problem;
4. Such systematic problem across the company cannot be eradicated overnight. Eradication of such problem must come from the Board of Directors;
5. Although most of the institutions in Singapore is "safe" from the various ratios (such as solvency ratio etc), these ratios do not take into the account that these institutions are finding itself potentially liable for investment losses of their clients. That is to say that its potential liabilities are huge;
6. Some investors are considering class action suit against these institutions. This could only mean bad publicity and litgation cost;
7. In the light of this, this will hurt the bottomline and erode shareholders' value.

Therefore I appeal to all shareholders - whether you are a small timer or a corporation shareholder - to raise this issue at the next AGM and demand that your company do the right thing by:

1. Being ethical;
2. Do the right thing for all stakeholders;
3. Prevent any unncessary losses to shareholders' profit;

If the executive of the company refuse to give a commitment, you should sell your share away. Why bother to hold to shares which the company is not keen to treat its customers well? If you are a significant shareholder such as a pension fund or a hedge fund, you should replace the directors if they are not forthcoming to changes.