The Monetary Authority of Singapore (MAS) has completed investigations into the sale and marketing of structured notes linked to Lehman Brothers (the Notes). Given the degree of public interest, MAS is releasing a report on our investigation findings.
MAS’ investigations found that the 10 financial institutions that distributed the Notes (see Annex 1) had policies, procedures and controls in place for the approval, sales and marketing of the Notes. However, the extent of the due diligence and level of internal controls differed among them. As a result, there were various forms of non-compliance with MAS’ notices and guidelines on the sale and marketing of investment products. The nature and extent of these failings and their potential impact on the sales process and customers differed for each institution. Some of the specific failings included:
a) risk ratings assigned by some financial institutions to some series of the Notes that were inconsistent with risk warnings stated in the prospectus and pricing statement;
b) insufficient steps taken by some financial institutions to ensure that all their financial advisory representatives were properly trained before marketing and selling the Notes; and
c) weaknesses in how some financial institutions ensured that their financial advisory representatives were properly equipped with accurate and complete information about the Notes.
The findings for each financial institution are specific to that institution and are not general findings.
MAS takes a serious view of all instances of non-compliance by the financial institutions with MAS’ notices and guidelines on the sale and marketing of investment products. In deciding on the appropriate regulatory action, MAS considered the nature and impact of the failings, the steps taken by the financial institutions to rectify these, and the extent to which they accepted responsibility and resolved investors’ complaints. Taking all these into account, MAS has imposed bans on the sale of structured notes by these institutions for periods ranging from a minimum of six months to a minimum of two years. In addition, MAS has issued formal directions to the financial institutions to rectify all the weaknesses identified by the investigations and to review and strengthen all internal processes and procedures for the provision of financial advisory services across all investment products. The financial institutions are also required to appoint an external person approved by MAS to review their action plan and report on its implementation, and appoint a member of the institution’s senior management to oversee compliance with MAS’ direction. The financial institutions will not be able to distribute structured notes until MAS is satisfied with the measures they have put in place.
Source
Wednesday, October 28, 2009
Thursday, October 15, 2009
How to Sell Structured Settlements?
If you have a annuity payments that are slowly trickling in and want to sell your structured settlement, this guide will help you figure out how to find the most reputable investment company and what to expect throughout the process. Keep in mind that you are going to pay fees to the investment company that will be deducted from your sale. It usually is somewhere between 15-30% depending on the company and the amount of sale.
The longer the terms of your annuity, the larger the fee will be taken to cover inflation on future payments.
All structured settlement sales go through a court approval process in order to prevent you from getting scammed and to make sure that the deal is fair for both parties.
Decide how much of your structured settlement you want to sell. It's possible to sell only a few payments, half the payments, or the entire thing. When your deal goes in front of a judge (more on that below) the smaller the payment, the faster and more likely it will be approved. If you have something that you want to invest in that you know exactly what its cost is, or a large purchase to make, taking the smaller payments is probably a better idea.
Research structured settlement investors. Spend a good amount of time online researching different companies. Dig up as much dirt as you can without filling out the contact form on their website. Many of the websites are a front for sales lead companies. You fill out the contact info and they will sell it to large investment companies to contact you. After you click submit on the contact form, expect multiple phone calls from these companies. Only do this if you're ready to deal with the telemarketers.
Work towards approval of the deal. After you decide on an investment company, you're ready to sell structured settlement. It may be a good idea to have legal representation or a financial advisor with you to make sure that you get the best terms possible. After the first draft is completed you will go in front of a judge for approval. Most deals through reputable investment companies will be approved the first attempt. If the judge does not approve the transaction, it's the investment company's responsibility to draft another deal for approval.
The longer the terms of your annuity, the larger the fee will be taken to cover inflation on future payments.
All structured settlement sales go through a court approval process in order to prevent you from getting scammed and to make sure that the deal is fair for both parties.
Decide how much of your structured settlement you want to sell. It's possible to sell only a few payments, half the payments, or the entire thing. When your deal goes in front of a judge (more on that below) the smaller the payment, the faster and more likely it will be approved. If you have something that you want to invest in that you know exactly what its cost is, or a large purchase to make, taking the smaller payments is probably a better idea.
Research structured settlement investors. Spend a good amount of time online researching different companies. Dig up as much dirt as you can without filling out the contact form on their website. Many of the websites are a front for sales lead companies. You fill out the contact info and they will sell it to large investment companies to contact you. After you click submit on the contact form, expect multiple phone calls from these companies. Only do this if you're ready to deal with the telemarketers.
Work towards approval of the deal. After you decide on an investment company, you're ready to sell structured settlement. It may be a good idea to have legal representation or a financial advisor with you to make sure that you get the best terms possible. After the first draft is completed you will go in front of a judge for approval. Most deals through reputable investment companies will be approved the first attempt. If the judge does not approve the transaction, it's the investment company's responsibility to draft another deal for approval.
Monday, September 28, 2009
Structured Settlement Investment
Choosing a structured settlement investment as an option for for financial gain can be a viable method of acquiring profit. These settlements are usually paid out to individuals over a period of time and may be the result of an insurance pay out, lottery winnings, annuities or a court judgment. Receiving money that is owed over time in small increments may not have the same kind of life changing possibilities that a onetime payment of a large amount of money can have. This is the main attraction that draws individuals to investors who are willing to pay money for structured settlement payments.
The decision to participate in a structured settlement investment can depend upon a variety of factors. Pressing financial needs can be very persuasive for the owners of these settlements. Mounting debts, needed home repairs, medical bills, or a child's education can be just some of the reasons that someone might decide to sell off future payments. Many recipients of settlement disbursements would rather have a lump sum payment instead of receiving a cash payout over a number of years. An immediate cash payout would benefit them during financial hardship or to add to their current lifestyle. This is an option for people who are unable to make investments elsewhere through savings, money markets, etc. Spend a little time learning about the process for receiving a cash payout.
An investment into structured settlements allows an individual to make a onetime payment to the holder of the settlement. Then, the investor simply sits backs and collects the payments over the lifetime of the settlement. Since there is such a difference between the amount of money that is paid to the settlement holder originally and the amount of money that is paid in total to the settlement purchaser, the investment return here is higher than what most expect.
A structured settlement investment requires a little more than a willing buyer paired with a willing seller. While such arrangements can be a financial opportunity for both parties, the law does not allow individuals to sell off such assets without court approval.
Source
The decision to participate in a structured settlement investment can depend upon a variety of factors. Pressing financial needs can be very persuasive for the owners of these settlements. Mounting debts, needed home repairs, medical bills, or a child's education can be just some of the reasons that someone might decide to sell off future payments. Many recipients of settlement disbursements would rather have a lump sum payment instead of receiving a cash payout over a number of years. An immediate cash payout would benefit them during financial hardship or to add to their current lifestyle. This is an option for people who are unable to make investments elsewhere through savings, money markets, etc. Spend a little time learning about the process for receiving a cash payout.
An investment into structured settlements allows an individual to make a onetime payment to the holder of the settlement. Then, the investor simply sits backs and collects the payments over the lifetime of the settlement. Since there is such a difference between the amount of money that is paid to the settlement holder originally and the amount of money that is paid in total to the settlement purchaser, the investment return here is higher than what most expect.
A structured settlement investment requires a little more than a willing buyer paired with a willing seller. While such arrangements can be a financial opportunity for both parties, the law does not allow individuals to sell off such assets without court approval.
Source
Tuesday, September 15, 2009
Settlement Payments for Mortgages
When the Internal Revenue Code section 5891 was signed into law by President George W. Bush in 2001, the owners of structured settlements were allowed to have an option to sell their structured settlements to a secondary market. This law gave way to a solution for many structured settlement owners with financial problems. There are now many companies willing to pay cash for structured settlement payments being sold to them.
One of the common financial challenges of most people is their house mortgage. With the prices of almost everything going up, people with fixed salary usually have a hard time coping up and managing payments of their debts especially covering for house mortgages. It is advisable that before deciding to sell your settlement arrangement, you should do your own extensive research about the process and the industry. This system involves your money and thus, should not be taken lightly. You may also do your research about the companies that purchase settlements and find what their rates are so you would know which company will pay you better.
You may also seek an independent professional advice before selling your rights to your structural settlement so that you may be ensured that you will receive a fair market value from the buyer.
Source
One of the common financial challenges of most people is their house mortgage. With the prices of almost everything going up, people with fixed salary usually have a hard time coping up and managing payments of their debts especially covering for house mortgages. It is advisable that before deciding to sell your settlement arrangement, you should do your own extensive research about the process and the industry. This system involves your money and thus, should not be taken lightly. You may also do your research about the companies that purchase settlements and find what their rates are so you would know which company will pay you better.
You may also seek an independent professional advice before selling your rights to your structural settlement so that you may be ensured that you will receive a fair market value from the buyer.
Source
Monday, September 7, 2009
4 reasons for you to take a structured settlement
4 best reasons for you to take a structured settlement :-
1. To pay off credit cards with high interest rates .
2. To pay down a home mortgage to reduce monthly payments .
.
3. To pay for children's college tuition
4. Emergency expences due to medical problems or an accident.
Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:
Excessive Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't consume an inappropriate percentage of its principal.
Overstated Value - Sometimes, after negotiating a particular settlement figure, the defense will overstate the value of a structured settlement. As a result the plaintiff, in accepting the settlement, in fact obtains a significantly lower dollar value than was agreed upon. Some defendants have nominally paid the full amount of the settlement, knowing that they would later obtain significant rebates from the annuity companies they used. Plaintiffs should consider compariing the fees and commissions charged for similar settlement packages by a variety of insurance companies, to make sure that they are in fact getting full value. A plaintiff may wish to make it a condition of the settlement that the defendant will actually pay the full value of the settlement in setting up the structured settlement, and that any rebates received by the defendant for annuities included in the settlement be payable to the plaintiff.
Self-Dealing - There have been cases where the plaintiff's lawyer is also in the insurance business, and sets up a structured settlement on behalf of a client without disclosing that the attorney is purchasing the annuities from his own business, or is pocketing a large commission on the annuities. Similarly, there have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing that the financial planner will be paying the attorney a referral fee in relation to the client's account. Make sure that you know what financial interest, if any, your lawyer has in relation to any financial services sold or recommended by the lawyer.
Life Expectancy - It is unfortunate, but many people who receive large personal injury or workers' compensation settlements will have a shortened life expectancy as a result of their injuries. It is important to consider life expectancy in association with any structured settlement, and to consider whether it is appropriate to enter into an annuity where payments will cease upon death. Sometimes it will make sense to insist upon an annuity that pays a minimum number of payments, or one that will pay a balance into the plaintiff's estate, such that the value of the settlement is not lost to an insurance company upon the plaintiff's untimely death.
Using Multiple Insurance Companies - For larger settlements, it often makes sense to purchase annuities for a structured settlement from several different companies, dividing the settlement between those companies. This can provide you with protection in the event that a company that issued annuities for your settlement package goes into bankruptcy - even in the event that one of the companies defaults in part or in full on your settlement payments, you would still receive full payment from the other companies.
Source
1. To pay off credit cards with high interest rates .
2. To pay down a home mortgage to reduce monthly payments .
.
3. To pay for children's college tuition
4. Emergency expences due to medical problems or an accident.
Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:
Excessive Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't consume an inappropriate percentage of its principal.
Overstated Value - Sometimes, after negotiating a particular settlement figure, the defense will overstate the value of a structured settlement. As a result the plaintiff, in accepting the settlement, in fact obtains a significantly lower dollar value than was agreed upon. Some defendants have nominally paid the full amount of the settlement, knowing that they would later obtain significant rebates from the annuity companies they used. Plaintiffs should consider compariing the fees and commissions charged for similar settlement packages by a variety of insurance companies, to make sure that they are in fact getting full value. A plaintiff may wish to make it a condition of the settlement that the defendant will actually pay the full value of the settlement in setting up the structured settlement, and that any rebates received by the defendant for annuities included in the settlement be payable to the plaintiff.
Self-Dealing - There have been cases where the plaintiff's lawyer is also in the insurance business, and sets up a structured settlement on behalf of a client without disclosing that the attorney is purchasing the annuities from his own business, or is pocketing a large commission on the annuities. Similarly, there have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing that the financial planner will be paying the attorney a referral fee in relation to the client's account. Make sure that you know what financial interest, if any, your lawyer has in relation to any financial services sold or recommended by the lawyer.
Life Expectancy - It is unfortunate, but many people who receive large personal injury or workers' compensation settlements will have a shortened life expectancy as a result of their injuries. It is important to consider life expectancy in association with any structured settlement, and to consider whether it is appropriate to enter into an annuity where payments will cease upon death. Sometimes it will make sense to insist upon an annuity that pays a minimum number of payments, or one that will pay a balance into the plaintiff's estate, such that the value of the settlement is not lost to an insurance company upon the plaintiff's untimely death.
Using Multiple Insurance Companies - For larger settlements, it often makes sense to purchase annuities for a structured settlement from several different companies, dividing the settlement between those companies. This can provide you with protection in the event that a company that issued annuities for your settlement package goes into bankruptcy - even in the event that one of the companies defaults in part or in full on your settlement payments, you would still receive full payment from the other companies.
Source
Monday, August 24, 2009
Is selling a structured settlement a good investment decision?
In nine cases out of ten, selling a structured settlement is not a good investment decision. Ideally, selling a structured settlement for cash should be the last alternative and should be resorted to only if the individual is confident of managing his own investment portfolio in a competent manner. This is because in any sale of a structured settlement, it is possible to lose up to half of the long-term value of the structured settlement.
A structured settlement offers guaranteed payment that is tax-free; this may not be the case with investments made by selling a structured settlement. Moreover, the regular payments offered by a structured settlement are a source of great comfort to retired individuals and those with an impaired earning ability. A structured settlement offers the advantage of a regular income without having to worry about managing it.
If one has sufficient business experience and is confident of himself, he can use the money obtained from the sale of a structured settlement as capital, and the money can also be used to make intelligent real estate purchases. In case, an individual has to sell his structured settlement, he should try and sell as few payments as would be required to get his work done. Exchanging the security of structured settlement payments for another investment plan has its risks and one should consider alternatives in collaboration with a financial advisor. An advantage of investing money obtained from selling a structured settlement is that one gains control of his own finances; with a structured settlement, the control is largely in the hands of lawyers and companies that pay the settlements.
Selling structured settlements can be particularly detrimental to individuals who are disabled, minors, workers compensated for loss, and compensation due to severe injury.
Source
A structured settlement offers guaranteed payment that is tax-free; this may not be the case with investments made by selling a structured settlement. Moreover, the regular payments offered by a structured settlement are a source of great comfort to retired individuals and those with an impaired earning ability. A structured settlement offers the advantage of a regular income without having to worry about managing it.
If one has sufficient business experience and is confident of himself, he can use the money obtained from the sale of a structured settlement as capital, and the money can also be used to make intelligent real estate purchases. In case, an individual has to sell his structured settlement, he should try and sell as few payments as would be required to get his work done. Exchanging the security of structured settlement payments for another investment plan has its risks and one should consider alternatives in collaboration with a financial advisor. An advantage of investing money obtained from selling a structured settlement is that one gains control of his own finances; with a structured settlement, the control is largely in the hands of lawyers and companies that pay the settlements.
Selling structured settlements can be particularly detrimental to individuals who are disabled, minors, workers compensated for loss, and compensation due to severe injury.
Source
Monday, August 10, 2009
Sell Structured Settlements For Cash - with Ease
If you have a structured settlement, you don’t have to wait for your money! It is possible to sell structured settlements & future lawsuit payments to financial institutions like Woodbridge.
Many plaintiffs who have won payment for damages are awarded a structured settlement, but it’s not always possible or advantageous to wait months, years—even a lifetime—to receive the full amount of the award. If you have won a structured settlement in a lawsuit for any reason, whether it be for:
Personal Injury Liability Harassment Malpractice You can turn all or part of your future payments into a lump sum. Selling your structured settlement can give you the financial freedom you need to meet today’s challenges and opportunities.
When selling structured settlements is the right call.
Structured settlements are designed to make sure that plaintiffs, especially those who have suffered life-altering injuries, will receive a steady stream of future income. However, an inflexible schedule of future payments—often stretching out over a period of years—might not help you meet the immediate financial needs of you and your family. Whether you want to buy a new house, pay down old debt, pursue a business opportunity, or just free up more cash-flow, selling structured settlements to Woodbridge Investments can put your award to work today.
Structured settlements are designed to make sure that plaintiffs, especially those who have suffered life-altering injuries, will receive a steady stream of future income. However, an inflexible schedule of future payments—often stretching out over a period of years—might not help you meet the immediate financial needs of you and your family. Whether you want to buy a new house, pay down old debt, pursue a business opportunity, or just free up more cash-flow, selling structured settlements to Woodbridge Investments can put your award to work today.
A pioneer in the field, the principals of Woodbridge Investments have purchased close to one billion dollars in payments since 1993, and no one works harder to meet the unique needs of their clients. Let our talented and creative team of financial consultants work with you to put the cash you need into your hands today. We guarantee that no legitimate company will make a better offer when you’re ready to sell your structured settlement.
Monday, July 27, 2009
Structured Settlements
If you’ve received this windfall, it might sound like you’re fixed for life. The reality is that your financial life has changed drastically, and you need to plan for it.
A structured settlement is a way of receiving partial payments for a major amount of money you’ve won or received in a lottery, a court or insurance case. You hear a lot of commercials on the air for getting cash from structured settlements, but it’s important to understand what they are and how they should be handled if you’re ever the recipient.
A good place to start is with a tax expert like a certified public accountant, a financial planning expert, and an attorney or structured settlement consultant who has significant experience dealing with these payment structures. When there is big money at stake, it might make sense to consult all three. Some ideas:
First, the definition: A structured settlement is structured like an annuity. It is a contract written by an insurance company that provides periodic payments to a winner in a lottery, a lawsuit or some other settlement arrangement over time. Amounts can be paid out weekly, monthly or yearly.
The benefits: Structured correctly – and with the right oversight going in – a structured settlement annuity provides a payment stream that may be tax-free over a period of time during the winner’s lifetime and remaining payments may be bequeathed to his or her survivors after their death.
The pitfalls: One should never accept a structured settlement agreement without vetting it against their own tax situation or estate needs. Also, it helps to have an expert who understands these agreements well enough to know whether certain fees or charges connected with that settlement are appropriate to the overall size of the award. Keep it in mind that the structured settlement must be purchased by the person or company that is at fault or is making the award. This is why it’s particularly important to have an expert watching over that selection process from the moment the award is announced.
The lump sum alternative: If a winner chooses a lump sum payment over a periodic payment based on the full amount of the award, that payment will likely be handled with an insurance contract that physically pays the lump sum but at a much heftier chunk of the full total – they get a big payoff for giving you a big one-time payoff. Keep in mind that the lump-sum payoff idea may not be worth pursuing unless it’s large enough to throw off substantial investment income in the future and that you have talented management making sure that lump sum makes money over time. This is why it’s always a good reason to confer with tax, financial and investment experts on the best way to go with either a lump sum or a periodic payment from the moment you’ve been informed you won the money.
Keep in mind that others get an advantage too: Many attorneys are also structuring their fees that are taken directly out of a court award. This allows them to postpone receiving their share of an award on a tax-deferred basis so they can build their own retirement funds. There’s nothing wrong with this, but it’s important to know who else in the process might benefit from any decisions that get made.
Source
A structured settlement is a way of receiving partial payments for a major amount of money you’ve won or received in a lottery, a court or insurance case. You hear a lot of commercials on the air for getting cash from structured settlements, but it’s important to understand what they are and how they should be handled if you’re ever the recipient.
A good place to start is with a tax expert like a certified public accountant, a financial planning expert, and an attorney or structured settlement consultant who has significant experience dealing with these payment structures. When there is big money at stake, it might make sense to consult all three. Some ideas:
First, the definition: A structured settlement is structured like an annuity. It is a contract written by an insurance company that provides periodic payments to a winner in a lottery, a lawsuit or some other settlement arrangement over time. Amounts can be paid out weekly, monthly or yearly.
The benefits: Structured correctly – and with the right oversight going in – a structured settlement annuity provides a payment stream that may be tax-free over a period of time during the winner’s lifetime and remaining payments may be bequeathed to his or her survivors after their death.
The pitfalls: One should never accept a structured settlement agreement without vetting it against their own tax situation or estate needs. Also, it helps to have an expert who understands these agreements well enough to know whether certain fees or charges connected with that settlement are appropriate to the overall size of the award. Keep it in mind that the structured settlement must be purchased by the person or company that is at fault or is making the award. This is why it’s particularly important to have an expert watching over that selection process from the moment the award is announced.
The lump sum alternative: If a winner chooses a lump sum payment over a periodic payment based on the full amount of the award, that payment will likely be handled with an insurance contract that physically pays the lump sum but at a much heftier chunk of the full total – they get a big payoff for giving you a big one-time payoff. Keep in mind that the lump-sum payoff idea may not be worth pursuing unless it’s large enough to throw off substantial investment income in the future and that you have talented management making sure that lump sum makes money over time. This is why it’s always a good reason to confer with tax, financial and investment experts on the best way to go with either a lump sum or a periodic payment from the moment you’ve been informed you won the money.
Keep in mind that others get an advantage too: Many attorneys are also structuring their fees that are taken directly out of a court award. This allows them to postpone receiving their share of an award on a tax-deferred basis so they can build their own retirement funds. There’s nothing wrong with this, but it’s important to know who else in the process might benefit from any decisions that get made.
Source
Monday, July 13, 2009
Structured Settlement Investment
American Settlement Fund understands your circumstances may change after you have made a structured settlement investment. They can assist you in getting cash payout for that investment annuity. We have help thousands of people achieve their financial goals through cash payout. These goals may have been impossible through traditional investment options such as bank loans or other financing. Our mission is to continue to provide outstanding service to annuity beneficiaries with greater control over their assets.
Many recipients of settlement disbursements would rather have a lump sum payment instead of receiving a cash payout over a number of years. An immediate cash payout would benefit them during financial hardship or to add to their current lifestyle. This is an option for people who are unable to make investments elsewhere through savings, money markets, etc. Spend a little time learning about the process for receiving a cash payout. This will assure you that American Settlement Fund employs the best people to get the job done.
American Settlement Fund can offer tailored plans that fit the specific financial needs of a client. Our focus on superior customer service allows us to give individual attention to your circumstances. After an initial review of your situation we can work with you to get the cash payout that fits your financial goals.
Source
Many recipients of settlement disbursements would rather have a lump sum payment instead of receiving a cash payout over a number of years. An immediate cash payout would benefit them during financial hardship or to add to their current lifestyle. This is an option for people who are unable to make investments elsewhere through savings, money markets, etc. Spend a little time learning about the process for receiving a cash payout. This will assure you that American Settlement Fund employs the best people to get the job done.
American Settlement Fund can offer tailored plans that fit the specific financial needs of a client. Our focus on superior customer service allows us to give individual attention to your circumstances. After an initial review of your situation we can work with you to get the cash payout that fits your financial goals.
Source
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