Trust Investors Kept in the Dark; Want Their Interest Owed

Google Translation of 中诚30亿矿产信托未了事:私银客户欲追讨欠息 will follow. Long story short, as covered earlier, the trust holders must transfer their rights in order to have their principal repaid and they forego most of the interest in the third year of the trust. While many believe the trust has been bailed out and the matter is settled, in fact many investors are still pursuing their final interest payment.

In order to receive payment, investors first had to sign a power of attorney handing over rights and benefits. On the second day, they received payment, but many investors told the bank upon receipt that they would continue to pursue the rest of their promised interest. They have been pursuing interest for weeks in fact, and asked private bank advisers about it, but have yet to receive a clear answer.

About 30 investors are still pursuing their interest from 2013 and also for the month of January. The article cites a trust from January 011 that failed to pay on schedule, that did finally pay in January 2014.

The article goes on to discuss how investors are kept in the dark during this process, which has little transparency. It is a nightmare for investors.

My commentary: the failure of the trust product goes beyond the money involved, to the process as well. Communication from the bank and trust company was uncoordinated and conflicting at times, adding to the cost of the default on the entire system.

CCT ¥3 billion Trust Final Matter: Private Banking Clients Want Their Interest
21st Century Business Herald that when the outside world, "Jin Cheng to open No. 1" in good faith regarding the payment has been entrusted to an end when many investors are still trying to recover interest.

February 7, Shanghai an investor to 21st Century Business Herald reporter said, preparing to recover its interest consists of two parts, the principal amount of 300 million yuan investment calculations, a total of approximately 25.7 million. After years ago signed a "power of attorney", the principal investors safely arrival.

A look into the matter of wealth managers executives concluded that the evolution of the entire event from the point of view, the first private banking and trust institutions coping mechanisms, such as in terms of risk management is not mature, and ultimately lead to high net worth investors, unrest and dissent; secondly Investors should understand that in private banking is the most purchased products are not safe, not superstition "rigid payment" myth, once a risk, high-end service before any commitments are pale.

Three authorization commitments

First of all investors to agree to the transfer of the trust beneficiary; followed, including all relevant beneficial interests; Furthermore the transfer price of the corresponding principal amount.

21st Century Business Herald reporter learned that the product payment Eve, investors are asked to sign a power of attorney where the Branch.

"Power of Attorney" There are three key points: First, the investor agreed to transfer all of the trust beneficiary; followed, including all relevant beneficial interests; Furthermore the transfer price of the corresponding principal amount. An industry analysis, from the description point of view, it is bound to get the interest of the investors the right to petition, but eventually investors also look at the situation to negotiate with ICBC and China Credit Trust's.

The next day after the signing of the principal on arrival. At that time many investors are declared to Branch staff, the principal back, will retain the right to continue to recover interest.

Interest they mentioned, refers to the end of December 2013, the amount of sincerity to the third gold open interest on the 1st product greatly diminished compared to the previous two, only the equivalent annual yield of 2.85% level. It also lit the fuse root of the product of many investors uneasy. Many of them had repeatedly found wealth advisory private banking inquiries, but did not get a clear answer from the bank.

Followed by a month, the game investors, banks, trust companies have continued staged. January 16, CCT official said trust property realized there is uncertainty in the January 31, 2014.

Under pressure from all sides, CCT was in January 22 announcement, said the intention of working with investors to discuss certain to intensify consultations on specific investment details. Meanwhile the trust funds to invest in the coal mine finally made jiaocheng God-renewal of mining licenses. Linxian White House hilly village also agreed to unconditionally cooperate with and support the White House hilly coal mine approval issues.

However, in my heart a little when investors stability, Jan. 24 day laborers, chairman Jiang Jianqing said publicly that the bank will not honor the rigidity of the product.

Three days later, the paper announced that the Trustee an investor with the intention to reach an agreement to resolve payment by a third party then set pressure. Since then there has been a power of attorney signed the above scene.

Under the above solutions, 21st Century Business Herald calculated that investors buy the equivalent annual yield of this three-year life of the product decreased from 10.5% in about 7.95 percent, below the prevailing set of trust products issued annual average of 8.51% rate of return.

If investors do not sign the transfer agreement, may continue to hold equity wait for project operations, but can not guarantee the payment of principal. These investors to the 21st Century Business Herald reporter said that unpaid interest will continue to look for ICBC negotiate in good faith and require care personnel present.

He believes that the recovery of interest include two parts, one is the third time in unpaid interest, is approximately 7.7%; Second, the interest in January 2014; principal calculated at 300 million yuan investment, totaling approximately 25.7 million. Reporters learned that, for the recovery of interest on the issue, the current principal back some investors will no longer continue to advocate, and clearly there is this requirement

Investors of at least 30 people or more.

Coincidentally, Xinhua Trust 10 January 2011 home run record established Shanghai Capital Trust equity investment, but also twists and turns, and finally January 10, 2014 payment due. Payment of funds from other agencies. The product is a result of the financing side Shanghai home run record of actual control 邹蕴玉 its lofty home control involving civil borrowings into a debt crisis, also implicated home-run record.

Conceal information disclosure flaw

This reflects after such incidents, risk management and private banking coping mechanisms are not fully trust institutions, should take the initiative in a timely manner, the latest progress in addressing in detail informed investors.

Although these two products eventually poise, but for high net worth investors to buy is undoubtedly experiencing a nightmare.

Two cases show that even high net worth private investors in the bank, after the purchase of the product scraped, it is difficult to obtain timely and accurate information disclosure. Many bought "honest to the gold No. 1" investors to 21st Century Business Herald said that from December 2013 to January 2014, are either unable to contact the private banking wealth advisor, even find each other, it can only be told Head has not been a clear conclusion.

Until January 23 more than the investor group visit ICBC Private Banking Department (Shanghai) on the eve of CCT product was hastily issued an interim report, inform coal mining permit, and then set approached other good news, the intention to appease investors obvious.

Aforementioned wealth managers executives believe that after this reflects such incidents, risk management and private banking coping mechanisms are not fully trust institutions, should take the initiative in a timely manner, the latest progress in addressing in detail informed investors.

Prior to reassure investors from the partial success of the Case-risk products, while small-scale batches communication with investors, and timely information about the latest situation; hand to show investors the same stance and actively safeguard their legitimate rights and interests. Although earnings risk finally happened, but at the last minute before coldly throws compared to a paper payment notice, which also allow investors to accept.

What is more, many of the risk of trust products, even if the financing side has fallen into the debt crisis, a serious deterioration in the financial position or the secured party can not continue to provide effective security, trust management is still in a quarterly report to cover these risks, investors were kept in the dark.

For example, in January 2013, the secured party Xinhua Trust Shanghai home run record project is due to the debt crisis after a number of creditors prosecution was being reported that the Trust was issued a temporary notice to inform investors.

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