Product Due Diligence And the Suitability Of Minibonds: Taking the Benefit of Hindsight

• Main Author: CHEN, Christopher Chao-hung
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: structured note; minibond; investor protection; suitability; conduct of business; product due diligence; documentation; Banking and Finance Law; Commercial Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/1078
• Institution: Singapore Management University

This article focuses on some problems arising from applying the product due diligence requirement of the suitability rule to complex financial products. The article draws several conclusions. First, the ‘not unsuitable’ test should be adopted to reduce legal uncertainty. Second, the comparative risk...