Singapore

Welcome to this month’s issue of Commodities Brief.

There she blows! -- there she blows! News of the US$2 billion-plus trading loss by JP Morgan’s chief investment office could bolster arguments for those in favour of a tougher proprietary trading ban and tighter drafting for the long-awaited Volcker Rule.

This case came before the Hong Kong court late in 2011. The facts are relatively simple. Clearwater is an insurance broker. It arranged for Mr Hobbins to purchase investment linked assurance schemes (ILAS) from Royal Skandia and other insurers. Clearwater told Mr Hobbins he didn’t have to pay for its services but that it would receive commissions and fees paid by insurers whose products he purchased. Mr Hobbins was not happy with the performance of several of the ILAS products he purchased. He therefore sought the return of his original investment. One of his claims was that the ILAS contracts were contrary to s.9 of the Prevention of Bribery Ordinance (PBO) and therefore illegal, unenforceable and void.