OFFICIALS from the Monetary Authority of Singapore (MAS) have run spot checks on financial institutions that sold Lehman-linked products to ensure investors' complaints are handled properly.

The on-site visits, conducted in consultations with the three independent parties overseeing the complaints process, appeared to be largely encouraging.

The MAS said on Wednesday that it was satisfied that all 10 institutions are reviewing complaints based on 'principles of fairness rather than taking the strict legal position they would if the matter went to court'.

But it has asked 'a few' institutions to increase their resources, including engaging external firms to help existing staff deal with the mounting cases.

The MAS has also urged those institutions that have already reached provisional decisions on cases to conduct a final once-over before informing investors.

It says the additional step of due diligence would ensure that the institutions have taken all factors into account. They may include feedback from the independent parties and issues uncovered during MAS' own investigation into the debacle.

The central bank wants to ensure that the instituitions have applied the framework of the complaints procedure consistently, said Mr Shane Tregillis, deputy managing director of MAS's market conduct group.

Although these new MAS recommendations will invariably delay the completion of the review process by a few more weeks, MAS believes 'the final outcome will better serve investors' interests'.

Mr Tregillis said: 'Accordingly, most investors can expect to hear from their financial institution on the outcome of the review of their complaint starting from mid-January.'

The review has progressed considerably, with over 90 per cent of complainants having been interviewed. Provisional decisions have also been made on 80 per cent of those, the MAS confirmed.

As of Dec 14, almost 5,000 formal complaints had been filed at all institutions that sold Lehman Minibonds, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 LinkEarner notes.

Read the full story in Thursday's edition of The Straits Times.