Background:
A large corporate had lost a great deal taking a view on the markets using highly volatile accumulators structured from derivatives.
Situation:
The company made substantial losses dealing on accumulator structured products. Each contract was for 24 months with a separate structure for each month. There were nearly 40 of such instruments. The final outcome was extremely complex especially as the instruments suffered during a period of high market volatility.
The allegations were that the company should have declared these losses to the stock market in good time.
Action:
A detailed report was written analysing the position of the company and the complex derivative products themselves. Calculations of quantum losses were made as well as both actual and forecast losses over the period in question. The report also outlined what had been done and what should have been done by the company. This included a review of what would have been a reasonably competent course of action.
The report was defended in Court under cross examination by six separate Senior Counsels (Queen’s Counsels) who were assisted by their teams over a space of three days.
Richard Harris is a pioneer of the Asian Investment Management markets, with nearly 40 years experience. It is 46 years since he first arrived in Asia, within which he has 16 years in Europe. He has global multi-cultural contacts and a long-term financial professional… Learn More