results of the dispute resolution by the financial authorities that the banks and securities companies that sold Lime Asset Management's trading finance fund, which had been suspended for repurchases, return the principal to investors in full. It is the first time such a decision has been made in a fund product that recognizes the possibility of principal loss.
This is reporter Park Chan-geun.
Financial Supervisory Service decided that the sales company would return the full amount of the investment to the fund subscribers for the four cases of Lime's dispute settlement request for the trade finance fund.
It was judged that this is equivalent to'cancellation of a contract due to error' in the Civil Code.
At the time of selling the fund, losses of up to 98% occurred, which means that it provided false or poor information such as yield and investment risk.
In fact, the results of the FSS investigation revealed that Lime and Shinhan Investment Corp. manipulated the base price to gain about 0.45% per month despite the fund's insolvency in 2018.
[Jeongseongung / FSS buwonjangbo: has been identified an opportunity such as rational investment decisions of investors and provided by creating a loss of Conservation Memorandum that block the source -
if sales companies, such as banks and securities will follow the decision about the rest of the victims, The Financial Supervisory Service expected that the principal amount of the trade finance funds sold since November 2018 will be returned to KRW 111.1 billion.
[Investors of Trade Finance Fund (Joined in April 2019): (Yearly) Eighteenth Net. I'm glad. Instead of increasing (investment), I haven't received the principal, so I am in debt now. I thought I had to pay the debt quickly.]
However, it may be necessary to observe the internal decision process such as the board of directors, as some vendors may object.
It is unclear when dispute resolution will begin because other Lime funds, excluding trade finance funds, need more time to settle losses.
Among these, Seoul Southern District Prosecutors seized and searched Shinhan Bank's head office for allegedly selling the funds to investors even if they knew the fund was insolvent.
(Video coverage: Dong-hyuk Lee, Ho-jun Choi, Video editing: So-young Lee, CG: Jin-hoe Choi)
"Lime, I cheated on investors"... Decision to cancel contract first
The banks and securities firms that sold Lime Asset Management's trading finance fund, which had been suspended for repurchases, have resulted in a dispute resolution by financial authorities to return the full amount to the investors. It is the first time such a decision has been made in a fund product that recognizes the possibility of principal loss.