**********************************************************
In response to the procession relating to Lehman Brothers Minibond incident, a Government spokesman said today (April 19), "When the problems with the Lehman Brothers Minibonds arose, the Administration requested the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) to seriously handle the complaints. The SFC is expected to adopt appropriate enforcement actions in case of any regulatory breaches or irregularities," the spokesman said.
As at April 8, HKMA has received more than 20,700 complaints concerning Lehman Brothers-related products, and has formally commenced investigations on over 5,400 complaints. HKMA has referred 433 cases to the SFC for further action. The two regulators are in cooperation in order to handle the complaints expeditiously in accordance with the due process.
"We note that two SFC-licensed distributors of Minibonds have agreed with the SFC to make a voluntary offer to purchase from their eligible clients all outstanding Lehman Brothers Minibonds at a price equal to the principal amount invested. ¡@Thus far, there are about 6,000 cases in which voluntary settlements have been reached or soon to be reached between affected investors and the banks concerned.
"The Government will continue to monitor the developments of the Lehman Brothers Minibond incident," the spokesman added.
Ends/Sunday, April 19, 2009
Issued at HKT 18:18
NNNN
