The Securities & Futures Commission and the Monetary Authority have reached a resolution with Dah Sing Bank and Mevas Bank concerning their sale of certain equity index-linked fixed coupon principal protected notes issued by Lehman Brothers.

Dah Sing and Mevas have agreed, without admitting any liability, to make an offer to repurchase the Lehman Principal Protected Notes from eligible customers at 80% of the principal amount invested. All individual customers who purchased Lehman Principal Protected Notes from the two banks on or after August 5, 2008, are eligible. 

Individual customers who meet the eligibility criteria but who have previously settled their claims in relation to the distribution of Lehman Principal Protected Notes with the two banks will not qualify for the repurchase offers.

However, Dah Sing and Mevas have agreed to make ex gratia payments to such customers who under the settlements received less than 80% of the principal invested, so as to bring them to the same position as the customers eligible for the repurchase offers.

In light of the proposed repurchase and the ongoing commitments given by Dah Sing and Mevas under the July 22 Minibond Agreement, the commission will not take any enforcement action against the two banks, or any of their directors, officers or employees, under the commission's code of conduct in relation to the sale of the Lehman Principal Protected Notes.