I asked a question, "If the distributor offer to compensate 50% of your loss, will you accept it?"
About 20 investors replied to my email account and to this blog. Most expect compensation of 80% to 100% compensation. A few replied that 50% is fair.
I hope that the investors will take the following points into account:
1. The advertisement did highlight that under a credit event, the investor can lose up to 100% of the principal.
2. The investor did sign a lot of documents (and they may be unaware of what they signed) which will cover the distributor against liability.
We can argue that the distributor has a sense of duty to make sure that the recommended product is suitable for the investor. But the investor has to bear some responsibility as well. This point is highlighted in a e-mail sent to me by MS. A few investors commented that the chance of getting compensation is small.
I hope that the expectation of the investors can be moderated.
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