A FINANCIAL firestorm swept through the United States on Sunday, leaving a trail of destruction that radically recast Wall Street in just 24 hours.
The carnage gutted two famous US financial institutions - 158-year-old Lehman Brothers and 94-year-old Merrill Lynch - and now threatens to bring down scores of other bank

First UBS, Lehman Brothers, Merrill Lynch and now AIG !
It is financial chaos and a big mess.

I read this from one of our local forum. I have no comment. Draw your own conclusion :

Hi, I desperately need advice and help on what I can do as I am in a loss. Any form of help will be deeply appreciated. Please kindly read on.

I am an investor with AIA for more than 2 years, investing in their unit trusts. What happened was that I did a partial surrender on one of my policies more than 2 weeks ago. From what I knew, we should be able to get the cheque within 2 weeks. But what happened subsequently was an utter shock for me.

I received a letter from AIA last Thursday (21 Aug) with the contents being:
" We acknowledge your request for a partial withdrawal of the above Policy. Your request is being processed. This may be delayed due to certain inquiries in relation to the above Policy that are now taking place."

I was deeply puzzled as to why they are holding back the cheque, and informed my agent about it. He went down to AIA building Alexandria the next day, Friday (22 Aug) to look for the person who issued the letter. He was referred to a senior officer who said that someone ordered him to do so. He said he was unable to disclose who the person was, and the reason for holding back the cheque.

Both of us were very upset by it, as we felt that it was unfair for them to hold back the cheque, and refusing to even provide for an explanation as to why they are doing so. We went to lodge an official complaint to AIA’s compliance head. Even then, he was unable to give me a reason too and said will get back to me in a few days time. However, up to this moment, he had not given us any valid reason for doing so yet.

But the worst was yet to come. On Monday (25 Aug), I decided to switch my funds from AIA Global Resources Fund to the Money Market Fund as I felt that there was more downside to come. My agent helped me performed the switch before 2pm that day (their fund switch deadline). When I checked the funds using AIA ecare system that evening, I discovered that the funds were not switched. I informed my agent about it and he went down to AIA building the next day, Tuesday (26 Aug) to check with them.

Initially, they denied receiving the forms and said they could not find them. So we went to AIA’s Compliance to lodge a complaint regarding the missing forms. Then we made another switch from AIA Global Resources Fund to the Money Market Fund again since the forms went missing. Later in the evening, my agent received a call from them saying that AIA HAS EVEN STOPPED ME FROM SWITCHING FUNDS.

The person admitted they had actually received the forms on Monday, but the denied it. I was utterly traumatized upon hearing this. Why did they had to lie to us? And why can they even stop me from doing fund switches?
I have a few questions and hope anyone, just anyone, can give me any advice on what I should do.

1. Does AIA has the right to stop a client from doing a surrender, and even switching funds? Isn’t that as good as freezing my funds?

2. Will they be able to stop me from doing so indefinitely without any timeline given? If so, isn’t it as good as swallowing all my money?

3. Will they be able to come up with a reason and eventually not pay me a single cent? Do I have any rights as a customer to protect myself?

4. Is there any avenue or channel where I can seek professional help from? I am also thinking of bringing this matter to the press. Can anyone kindly enlighten me on how may I go about doing it?

Now, I am emotionally traumatized by the whole incident, and deeply disappointed with AIA on the way they had handled my issue. Anyone who can provide any advice and help, please kindly do so as I am very worried that my life’s savings will be swallowed up just like that by AIA. Anyone please!!!!

>>> Is AIA being honest, helpful or being autocratic and high handed ? !

stompKING
Good morning. I suggest you make a report to ther CAD and then forward your letter and the police to MAS. AIA has no right to stop any of its clients from switching to any products that is financialiy viable. This is strictly a business decision. The actions of your agents according to your letter is being dishonest to you. Report them to LUA. I wish you well in your dealings and do take the first step.

Even in good times, these pple already try their very best to discourage clients to switch funds. Had encountered similar incident years back. Now that the financial tsunami finally hit us, it's survival of the most unscrupulous - more sh*ts to come our way in the nx few days/weeks.

Is there light of hope at the end of this tunnel?

What is in the book "Is the future in our hands?"

When and how Capitalism will collapse into a Heap?

Communism collapsed without firing a shot?

Will there be a shot fired for Capitalism?

What is the Cause of the collapse?

Not sub-prime lah. The real Cause is not so simple lah. Look at the Unseen if you can.

It is Greed, Lust and Corruption. It brings all into darkness not into the Light.
What is the Cause, the real Cause?

Think.

What is the Solution?

stompKING
I am truly sorry for this stupid mistake I make."It should be: Forward your letter and the police report to MAS." I am sorry. Woke up too early by my client la.

What is his or her name?

Drives a Lexus, BM, Mers, or what type ?

It shows that afterall, people who have degrees, MBA etc, from famous school like Harvard, Stanford, Cornell etc etc.. cannot avoid the devil i.e. greed.

The reward system in US MNC is the evil itself on how senior managers are being measured and guess what, they run away probably with lots of wealth they earned but the shareholders, other employees have to suffer and face the consequences.

Does Meritrocracy really that great? Does Management by Objectives flawless? Does meeting KPI good to the company?

The good schools teach only the skills...nothing else.

More to come... I heard next is AIG... all those AIA insurance policies... may be NTUC have to take over.