Regulators probably felt pressure from the government to speed up the development of the investment products market, hurting their ability to properly protect investors, a former senior manager with the Securities and Futures Commission has alleged. The need to report 'quick wins' to the government likely reflected the growing priority placed on regulators to help foster the development of investment products, Harold Ko Ping-chung, the commission's former head of insurance-related policies and products, told lawmakers yesterday. Ko is assisting a Legislative Council inquiry into the alleged mis-selling of Lehman Brothers minibonds by banks. Although Ko said he did not have any evidence to support his claims, the allegation of official pressure shifts some, if not all, of the blame for the minibond mess on to the government. The government has largely distanced itself from the minibond fiasco and the subsequent deal with banks to partially compensate affected investors. The settlement offer by 16 banks to repurchase soured minibonds from about 25,000 investors meant those who accepted the terms would recoup between 60 per cent and 70 per cent of their initial investments. Disciplinary action has only been taken in one non-minibond case. Ko left the commission about five months ago. He spent much of his 20 years with the commission vetting investment products. His deep understanding of the regulator's work in authorising Lehman minibonds is seen as invaluable as lawmakers prepare to summon banking representatives to testify. According to Ko's statement to the inquiry, he first heard about the need for 'quick wins' in 2001. That was when the commission's then chairman, Andrew Sheng, approached the investment products department looking for 'quick wins' to report to government officials. This term was a popular buzzword within the commission and pressure to produce 'instant noodles' probably affected staff sentiment and operations, Ko said. As the commission's senior management are appointed by the government, they are likely to do the government's bidding, Ko alleged. Since leaving the commission, Ko has been keen for lawmakers to hear his evidence. He testified publicly yesterday for the second time. The bankruptcy of Wall Street giant Lehman Brothers in September 2008 rendered worthless the minibonds linked to it. Minibonds were not corporate bonds but are high-risk, credit-linked derivatives, marketed as proxy investments in well-known companies. Ko is no stranger to politics. In the 1990s he was a core member of United Ants, a grass-roots human rights group. He also ran unsuccessfully for a seat in Legco in 1995. Making deals The number of banks that have made settlement offers to minibond holders: 16