*********************************************************
In response to media enquiries about Lehman minibonds investors' procession today (August 23), a spokesman for the Financial Services and the Treasury Bureau said, "The repurchase scheme provides a practicable way to relieve the distress suffered by some 29,000 Lehman minibonds investors, representing more than 90 per cent of the investors in the Lehman Brothers incident, during the past months."
"The repurchase scheme, resulting from an agreement reached between regulators and distributing banks, has taken the interests of the related parties into consideration and is in line with the public interests. The decision reflects that an effective channel exists in our regulatory structure to ensure that investors' interests are protected."
The vast majority of investors who accept the scheme can get back 70% or more of their investment principal.
The spokesman said, "The Government has all along been urging the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) to complete as early as possible their investigations of mis-selling complaints. The regulators will not tolerate any mis-selling conducts. On the condition that the vast majority of Lehman Brothers minibonds investors accept the repurchase scheme, resources from the two regulators could focus on mis-selling complaints of other non-minibond structured products, for example mis-selling complaints of equity-linked products. The HKMA will continue its investigation into all complaints, and will refer cases which may involve systemic problems to the SFC for action.
"Nevertheless, we will learn from experiences gained in the Lehman Minibonds issue and improve our regulatory system so that investor protection can be further strengthened."
Ends/Sunday, August 23, 2009
Issued at HKT 18:19
NNNN
