In removing the ban, the local regulator, the Monetary Authority of Singapore (MAS), said the firms concerned had all taken measures to rectify various sales process weaknesses it had identified.
These ‘weaknesses’ were discovered in the course of investigations into how thousands of retail investors were sold what were deemed in many cases to be unsuitable products, the risks of which were not fully explained.
These so-called mini-bonds were backed by Lehman Brothers and investors – who have since been compensated – lost their money when the US investment bank collapsed in 2008.
The companies covered by the ban were CIMB Securities, DMG & Partners Sceurities, Kim Eng Securities, OCBC Securities, Phillip Securities and UOB Kay Hian.
The MAS said: “The six financial institutions have publicly pledged their commitment to effectively implement various measures on an ongoing basis in order to deliver fair dealing outcomes to their customers.
“These include stepping up training and supervision of their staff and enhancing the policies and procedures on their sales and advisory process. MAS will hold the board and senior management of the financial institutions accountable for meeting this commitment.”
