The Financial Justice Solidarity is holding a press conference in front of the Financial Supervisory Service in Yeouido, Seoul on the afternoon of the 5th, calling for a decision to cancel the Optimus contract and return the entire principal by the Financial Supervisory Service’s Dispute Mediation Committee. yunhap news
The Financial Supervisory Service decided to “return 100% of the investment principal” to NH Investment & Securities, which sold the Optimus Fund. The Financial Supervisory Service decided to cancel the contract, as it determined that “in fact, investment is impossible” for the public institution’s fixed sales receivables proposed by Optimus. If NH Investment & Securities accepts the Financial Supervisory Service’s decision, the investment principal of about 300 billion won will be paid to general investors.
Financial Supervisory Service “causing errors…the contract itself is invalid”
On the 6th, the Financial Supervisory Service released the results of the Dispute Mediation Committee (Ministry of Justice) held the previous day. The Financial Supervisory Service said, “We decided to cancel the contract due to an error for two dispute settlement applications for the Optimus Fund sold by NH Investment & Securities.” C. NH Investment & Securities sold 432.7 billion won of the Optimus Fund (5146 billion won) that had been suspended for redemption.
‘Cancellation of contract by mistake’ is a provision that allows cancellation of the contract if the civil law did not properly inform the important matters that the contract was not signed in the first place. This is the second time that the contract was canceled after the provisions were applied, following the Lime Trade Finance Fund last year.
The Financial Supervisory Service predicted that this decision would result in a return of about 300 billion won in investment capital, based on general investors. However, professional investors with investment expertise compared to ordinary investors were excluded from this sub-committee decision. An official from the Financial Supervisory Service explained, “In the case of professional investors, more careful obligations are required than that of ordinary investors.”
If mediation is rejected, expect tedious legal battles
The main reason why the Financial Supervisory Service Committee decided to cancel the contract was that it was impossible to invest in the’public institution’s fixed-sales bond’ contained in Optimus’ investment proposal. Optimus explained that more than 95% of the investment is invested in accounts receivables such as construction ordered by public institutions. That’s not right.
However, it turned out that NH Investment & Securities only believed in Optimus and explained it to investors, causing an error. Optimus invested 98% of its investment in risky assets such as unlisted companies.
The key is whether or not NH Investment & Securities will accept the subgroup decision. NH Investment & Securities plans to convene an interim board of directors soon to decide whether to accept the mediation proposal.
NH Investment & Securities said, “We respect the decision of the FSS subcommittee’s adjustment plan” regarding the FSS decision.
However, since NH Investment & Securities originally insisted on a multilateral compensation plan with Hana Bank, a trustee, and Securities Depository, an office management company, it is unclear whether it will accept the sub-committee’s decision as it is. The FSS decision is not legally enforced, so it takes effect only when both investors and sellers agree.
If NH Securities does not accept the mediation proposal, it could lead to a lawsuit. This means that it may take longer for the investment to be returned.
An official from the Financial Supervisory Service said, “If NH Investment & Securities does not accept this decision and leads to a lawsuit, we will support investors.” “I said.
Jeonghyun Kim reporter [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
