SIAS & The Lehman Minibond Notes Saga

Date: October 28, 2008

SIAS has been following the recent incident relating to the Lehman Minibond notes with keen interest and has noted some media views that it should have taken the lead role in representing the interests of the affected investors. SIAS sympathises with the predicament of the small investors in this saga. However, SIAS notes that they have banded together and created awareness. SIAS also notes the timely and proactive role played by the Monetary Authority of Singapore, and the stand taken by the financial institutions to take responsibility for cases where there are sufficient indications that the product was mis-sold or that it was in appropriate given the investors’ profile and circumstances. Therefore, SIAS has not seen the real need for public forum to meet the aggrieved investors as also none of our members had approached us for a meeting like in the case of China Aviation Oil.

SIAS approach has always been holistic towards investor activism. Over the last nine (9) years, SIAS has actively represented the interests of securities investors and has been promoting investor education at all levels to prepare small investors, who are our members, to make careful and informed decisions. This approach has also been adopted effectively during this instance through the media, advising investors on the approach towards achieving the best result for the situation.

It is well documented that SIAS has successfully represented the interest of shareholders in listed companies in many instances. It has been able to do so because it had won the respect of Boards and Senior Management, thereby achieving a win-win resolution. SIAS is able to open doors of Listed Companies, Financial Institutions and Regulators as it is regarded as a responsible and effective voice for small investors. SIAS believes in adopting a non-confrontational but fruitful approach in resolving shareholder issues. At the forefront of championing any issues, our objective is to achieve results for our members, which has proven to be the correct strategy in almost all instances SIAS has taken a role in.

It is interesting to note that although there are 68,000 small investors registered as members, SIAS has not received any complaints relating to the Lehman Minibond Notes. We believe this partly emanates from our activism in support of investor education over the last 9 years.

Going forward, we recognise that investors are venturing into other asset classes such as Structured Products, and would therefore require education and information to appreciate the risks involved in these investments. SIAS is, therefore, launching an investment handbook in due course for small investors to serve as a guide when investing in sophisticated products. SIAS will also step up its investor education programme to enhance its existing courses, in collaboration with MoneySENSE financial education programme and the Singapore Exchange. It is fundamental that small investors improve their investment knowledge.

SIAS is committed to championing the cause of small investors, as we have done for the last 9 years and investors can be assured that SIAS has their interest at heart.

David Gerald J.

President / CEO