Customers will be asked tough questions before investing, says chairman
By
Ignatius Low, Money Editor
DBS Bank plans to ask more detailed questions about a customer's background and how he got the money he is investing.
SINGAPORE'S largest bank is making big changes to the way it sells investments to customers, as it continues to battle criticism over losses suffered by those who put money into its High Notes 5 product.
DBS Bank plans to ask more detailed questions about a customer's background and how he got the money he is investing. And it will turn away those who are not suitable for a product, even if they insist on buying it.
The bank has drawn flak for arranging and selling structured products that have been rendered worthless by the collapse of American investment bank Lehman Brothers.
Some customers claim that the risks were not explained to them.
The bank has pledged to look into every complaint filed and resolve them all by the end of the year.
'It's a very encouraging move by a financial institution, certainly for retail investors like retirees,' said Mr David Gerald, chief executive officer of the Securities Investors Association of Singapore (Sias).
Sias has spoken out against the mis-selling of investment products and issued a guide for investors last week.
'It puts some of the responsibility back with investors, but then there is also a cooling-off period too, should they make a wrong decision and change their mind,' added Mr Gerald.
