SIX stock brokerages last night unveiled compensation plans for 'vulnerable' investors burnt by toxic products linked to the collapsed United States investment bank Lehman Brothers. The six are: CIMB-GK Securities, DMG & Partners, Kim Eng, OCBC Securities, Phillip Securities and UOB Kay Hian.
The buy-back will cover Lehman Minibonds and Merrill Lynch Jubilee Series 3 LinkEarner Notes. Vulnerable investors are defined as over 62 years, less educated and with little investing experience.
One of the six, CIMB-GK Securities, appeared to have gone one step further than the other five by saying it would pay back 100 per cent of investments by all investors deemed to be 'vulnerable'.The other five will pay these investors 'up to the cost' of the original investment, depending on the circumstances of each case.
