MAS takes stern action

10 financial institutions involved in the marketing of Lehman Brothers mini bonds in Singapore are banned by MAS from selling structured notes for between 6 months to 2 years. The 10 financial institutions are:

1. DBS Group
2. UOB Kay Hian
3. OCBC Securities
4. ABN AMRO's Singapore branch
5. Maybank Singapore
6. CIMB-GK Securities
7. Hong Leong Finance
8. DMG & Partners
9. Phillip Securities
10. Kim Eng Securities

Source: The Star

Managing insurance business during crisis

The Monetary Authority of Singapore shared ideas on managing the insurance business during the financial crisis to the insurance industry during the LIA AGM luncheon recently.

Some ideas shared:

• Strengthen the solvency positions early
• Conduct stress testing, including considering scenarios that are potentially devastating for business profiles
• Be watchful on potential frauds
• Should not charge into complex products that the insurer does not have expert knowledge of
• Regular updates to policyholders on the impact of the financial turbulence on their policies

Source: Straits Times