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bassexpander
Joined: 13 Sep 2007
Location: Someplace you'd rather be.
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 Posted: Wed Nov 12, 2008 4:06 am Post subject: Was WooriBank fund sold as a lie? |
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Jeeze, if you can't trust your bank....
http://joongangdaily.joins.com/article/view.asp?aid=2897249
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FSS: Bank should pay back investors in a mutual fund
Finding could cut losses by 50 percent, or spark lawsuits
November 12, 2008
With mutual fund investors banding together to hold fund sellers responsible for their declining portfolios, financial authorities yesterday reached an arbitration decision in one case that could help investors recoup half their losses.
Market watchers say the decision will trigger waves of lawsuits by fund investors, a move that could further contract the slumping fund industry here. But observers say it could also clean up practices where investment risks are often understated.
The Financial Supervisory Service said yesterday that Woori Bank and other sellers of the Woori Power Income Fund should compensate 50 percent of the losses to investors applying for indemnity.
The decision, in reaction to growing complaints by investors in the fund, is the first of its kind by the FSS, the watchdog which assumes an arbitrator�s role in finance-related conflicts.
The fund, created in 2005, has posted a minus 80 percent cumulative rate of return so far, but, according to investors, the sellers sold the shares of the funds as if they were as safe as a time deposit or bond fund.
Woori Bank has sold more than 90 percent of the fund.
Around 170 billion won [$128 million] worth of the fund has been sold to more than 2,000 investors.
The FSS arbitration, however, is not legally binding.
The fund sellers can put it aside and take their chances in court, where cases are currently pending.
Last month, 162 investors in the fund filed individual lawsuits against several fund sellers, according to Hannuri, a law firm representing the investors, making Woori Bank the first local fund seller brought to court since early 2003 when the popularity of fund investment took shape here.
Hundreds of other investors in the fund are getting ready to sue, the law firm said.
Encouraged by the move, investors in some other funds are also planning similar action.
An official of Woori Bank, speaking on condition of anonymity, said the bank is considering whether it will accept the FSS arbitration or not. If Woori Bank accepts the arbitration ruling, investors in the fund can get compensated by applying for it through the mail, by fax or online. They also can do so by visiting a help center at the FSS.
By Moon Gwang-lip Staff Reporter/ Ko Ran JoongAng Ilbo [[email protected]] |
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caniff
Joined: 03 Feb 2004
Location: All over the map
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| Posted: Wed Nov 12, 2008 4:29 am Post subject: |
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Sold them as if they were safe as a time deposit or a bond fund? If true, and I were an investor, I'd be like "*beep* you and I want ALL of my invested capital returned forthwith, you fucking liars."
But who knows. |
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victorology
Joined: 10 Sep 2007
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| Posted: Wed Nov 12, 2008 4:44 am Post subject: |
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I think everyone who invests needs to do their due diligence. I think it's more of a case of investors chasing after gains. We all know the saying. If it sounds too good to be true, it probably is.
My guess is, they were trying to be greedy... got caught in this economic crisis and are trying to blame the banks for their stupidity.
I'm not saying the banks have absolutely no responsibility but I put most of it on the investor. I ask for a prospectus even when I put my money into a money market fund. |
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