Good and bad acts

Hi Mr. Tan,
I have an article to share. If you think that it is suitable, you may publish my thoughts in your blog.
Mr. Lee

Do good or bad acts in a lifetime: The calculated risks
An interesting analysis: Should one do good or bad acts in a lifetime? Advantaging oneself at the expense of others’ would only make sense if:

1. There is 0% of a God in this world, or
2. If there is a God, he does not punish or reward accordingly to one’s good and bad behaviours.

Say if an individual lives to one hundred years old. He has been reaping benefits at the expense of others through bad behaviours in his lifetime. He might have “gained” for one hundred years, but “lost” for eternity if a judicial God exists.

Even as modern societies become more secular, based on calculated risks, it is still more worthwhile to do the right and correct acts in one’s lifetime. This is despite the possibility that there is just a small chance, say 10%, of a judicial God existing. It is because most likely than not, one’s afterlife would be for eternity. One may enjoy his ill-gotten gains for 100 years, but could possibly pay for his misdeeds for eternity.

Hence, one is better off at “investing” in good and correct acts rather than bad acts in a lifetime.

Mr Lee

T Puzzle - improve your child's IQ

The T puzzle is fun and can improve your child's IQ. It trains the child or adult to see matters from a different angle, and develops flexibility of mind. Read this.

Survey: It is easy to be cheated

Do you like my articles on "It is easy to be cheated"? Please reply to this survey. You can click here to view the various articles.

Here are the survey results (based on 41 replies). There are many personal observations.

Let your insurance company handle the recovery

Dear Mr Tan,
My parked vehicle was hit by another vehicle. A eye-witness left me a letter stating the number of the vehicle involved, but did not provide any contact information. I made a police report and went to my insurance's authorized workshop to claim third party against the other vehicle.

They recommended me to claim against my own insurance. As i have "no" eye-witnesses, they say the claim is highly improbable and i will eventually have to fork out from my own pocket or claim against my own insurance if i were to wait for the third party claim.

What should I do? Employ a lawyer to pursue? Repair and claim against my own insurance policy?

I decided to claim third party first and leave the car in my car park while waiting for the result? Is it advisable?

REPLY
It is better for you to claim under your own policy and let the insurance company handle the recovery from the other party.

As the witness is not prepared to give his or her identity, it will be difficult for you to prove that the specified vehicle had caused the damage, unless you are able to get an investigator to inspect their other vehicle before it is repaired. This is, as you can see, quite a lot of hassle.

So, leave it to your insurance company to handle this matter.

SCMP:HSBC marks out areas for wealth products sales

12 June 2009

HSBC Holdings will become the first lender to separate its retail banking and wealth management departments after a public outcry over tellers selling risky financial products to customers.

The move is expected to be followed by other lenders and follows recommendations by the Hong Kong Monetary Authority that banks tighten regulations on such high-risk investment products sales.

The fallout from the Lehman Brothers Holdings minibond scandal, in which banks sold highly speculative products to inexperienced investors, has put selling practices in the industry under the spotlight.

HSBC announced yesterday that three of its 100 branches in Hong Kong would separate its deposit-taking and investment service areas.

The pilot branches are at Hopewell Centre in Wan Chai, and Pedder Street and Lyndhurst Terrace in Central. The scheme will be expanded to all branches by September.

Peter Wong Tung-shun, the bank's executive director, said different designs would be used for the general banking and investment service areas to make sure customers could easily differentiate the two zones. Such clear zoning was in line with the HKMA's recommended measures and would enhance investor protection, he said.

The HKMA received more than 20,000 complaints about mis-selling by staff of 20 banks, including products that are touted as alternatives to time deposits but were in fact risky credit-linked notes.

About HK$20 billion of the Lehman products were bought by 48,000 Hong Kong investors. The products became worthless when the United States lender went bankrupt in September last year.

Sales activities within the investment areas would be audio-recorded and the tapes kept for seven years, HSBC said.

A Standard Chartered Bank spokesman said the bank was finalising its arrangements and would launch new measures by September. A spokesman for Hang Seng Bank could not be reached for comment.

The HKMA suggested banks completely separate their wealth management businesses from ordinary banking business by October 1 and record sales activities with customers by July 1.

Julia Leung Fung-yee, the Undersecretary for Financial Services and the Treasury, said yesterday the HKMA had received 500 complaints from people who had lost hundreds of millions of dollars on a complex credit-linked investment product called Octave notes, sold by US investment bank Morgan Stanley.

Two-thirds of the notes, sold mainly through 16 retail banks between 2004 and 2007, have lost more than 90 per cent of their value.

Hong Kong investors had bought HK$24.9 billion worth of structured products, including Lehman minibonds and Octave notes. Of the credit-linked products, HK$4.5 billion is still outstanding.

SCMP:SFC may regulate all investment offerings

12 June 2009
The government is considering amending the law to let the Securities and Futures Commission regulate all investment products and prospectuses, a move that may plug the loophole exposed by the sales of the Lehman Brothers minibonds.

SFC chief executive Martin Wheatley said in a Legislative Council financial affairs panel yesterday that structured products such as the minibonds issued by Lehman or the Octave notes by Morgan Stanley were now regulated by the Companies Ordinance.

John Leung Chi-yan, a Deputy Secretary for Financial Services and the Treasury, said in the same meeting that the government might consider shifting the provisions on prospectuses and product offerings under the Companies Ordinance to the Securities and Futures Ordinance.

Easy life in Solo, Indonesia

My friend told me that the people of Solo are easy going, without any stress. Most people are able to make a living without having much worry. They work but also have time for family and friends. Life is not as hectic as in Jakarta.

There are factory owners in Solo, but each owner runs only one factory or business. They do not own many factories or try to make a lot of money.

I will visit Solo one day, and see the quality of life there. I was in Jogjakarta last year, and had a similar impression of this city.