Optimus Ghana in the end… “Cancellation of contract due to error” vs. “It will be difficult to convince the board of directors”

NH Investment & Securities’ calculation method has become complicated as the Financial Supervisory Service’s Financial Dispute Mediation Committee (Bunjo Committee) decided to return the full amount of the investment principal for the settlement of disputes related to the Optimus Asset Management Fund sold by NH Investment & Securities. Until now, NH Investment & Securities maintained the position of’multilateral compensation’ even to persuade the board of directors and to make quick compensation for investors, but the decision to cancel the contract due to error has also increased the possibility of prolonged civil lawsuits.

On the 6th, the Financial Supervisory Service announced that it had decided to cancel the contract due to an error on two dispute settlement applications related to the Optimus Fund sold by NH Investment & Securities on the previous day. Previously, NH Investment & Securities requested a multilateral compensation plan with joint responsibility with Hana Bank, a consignment company, and Korea Securities Depository, an office management company, but it was not accepted in the end.

Kim Cheol-woong, deputy head of the Consumer Rights Protection Division of the Financial Supervisory Service, said, “It was difficult to physically raise the proposal to the Dispute Mediation Committee by receiving a proposal for multilateral compensation in a situation where the legal review for cancellation of contract due to error was already in progress.” There were aspects that were difficult to do,” he explained. In addition, it was judged that it was difficult to discuss multilateral compensation at the present time, as the prosecution is still investigating whether the KSD and Hana Bank acted illegally.

The Optimus Fund investment proposal states that more than 95% of the investment portfolio will be invested in fixed sales receivables (maturity of 6 to 9 months) of government-affiliated agencies or public institutions. However, the Financial Supervisory Service saw that it is virtually impossible to incorporate established accounts receivables from public institutions as major assets of funds that are managed for more than 6 months or 9 months in maturity. An official from the Financial Supervisory Service said, “Optimus Fund invested in public institution firm bonds, but as a result of the FSS inspection, most of the incorporated assets (98%) were invested in private equity bonds issued by unlisted companies.” Said. It is the second time in history that the decision to compensate 100% for financial products was made after the Lime Asset Management Trade Finance Fund (Pluto TF-1) in July of last year.

The seller and the investor who received the proposal to adjust the subcommittee must decide whether to accept it within 20 days. The Financial Supervisory Service said that once this adjustment is made, it plans to promptly self-adjust the rest of the investors according to the decision of the sub-assessment committee. The Financial Supervisory Service predicted that, if dispute settlement is smoothly done, the investment principal of about 300 billion won will be received based on general investors. In response to the results of the Financial Supervisory Commission’s subcommittee, an official from NH Investment & Securities said, “We respect the decision of the FSS subcommittee’s adjustment plan and will try to come up with the best measures to protect investors.” The decision of the subcommittee is expected to be decided by the board of directors. On the previous day, NH Investment & Securities President Chung Young-chae said, “I respect the position of the financial authorities as much as possible” at the meeting with CEOs of the Gold Investment Zone.

Some thought that there would be great pain in accepting the decision of the squadron committee as there was an issue of the board members’ assignments. President Jung Young-chae said on the previous day, “If the contract is canceled, there are legal issues and the effect of giving immunity to financial companies who are responsible for the same will occur.” I also revealed it. Regardless of 100% compensation, the point was that’multilateral compensation’ was advantageous to persuade the board of directors, so the compensation ratio or amount was not very important to investors. Previously, the agenda was passed at the sixth board of directors, as directors resigned over the advance payment of Optimus liquidity. The intention was that the liquidity supply could be seen as a deficit or damage to shareholder value.

An official from a financial investment industry said, “The investigation into Hana Bank and the Depository is still underway, but the Financial Supervisory Service seems to be in a hurry to deal with the situation, and only NH Investment & Securities will have a difficult homework.” “If it goes on, it will be burdensome to both sides, and the FSS decision will never be for investors.”