In April 2023, Ms. Li Jing, Ms. Wang Li and Ms. Yang Yang of King&Capital Law Firm were entrusted to represent the case of “Default on Investment in Overseas Securities Markets”, which received a successful award on June 26, 2024, which supported all of the investor's arbitration requests.
In August 2016, the investor and the trustee signed the Entrusted Investment Agreement, which agreed to invest in “investing in overseas securities market (including but not limited to directly subscribing the shares of QDII capital management plan products, or being assigned the income right of the shares of QDII products held by a third party, or being assigned the income right of the shares of overseas securities market held by a third party directly) “. After accepting the commission, the lawyers investigated the qualification of the trustee as a manager and the destination of the funds and found that the trustee did not invest the commissioned funds in the overseas securities market. The arbitration was initiated on the grounds that the trustee had failed to fulfill its duty of prudent and diligent management and demanded the trustee to compensate the investors for the loss of principal and interest.
During the hearing, both parties submitted a large amount of evidence and engaged in heated debates on whether the product in question had invested in overseas securities markets and whether the liquidation of the product in question had been completed, and whether and when the investors knew that the product in question had not been invested in overseas securities markets. In the end, the Arbitration Tribunal held that the product in question had not yet been completed for liquidation, and that the trustee had failed to invest in accordance with the contractual agreement, failed to faithfully and diligently perform its fiduciary duties, and was still under the the limitation period and should compensate the investors for all losses.
In the current economic environment downturn, the scheduled payment of various capital management products is facing a major test, product managers failed to fulfill their prudent and diligent management obligations abound, and defaults of capital management products continue to occur. King&Capital lawyers suggest that investors who have suffered a financial product default, if it is caused by the manager's failure to fulfill its duty of prudent and diligent management, they should file arbitration or litigation as soon as possible, and file a claim for damages against the manager, so as to convert the right to investment income into a claim.
