Progress of crude oil treasure incident: difficult litigation, many lawyers are unwilling to represent

category:Finance
 Progress of crude oil treasure incident: difficult litigation, many lawyers are unwilling to represent


The court announcement brings light

Recently, some provincial peoples courts have successively issued civil litigation notices concerning the Bank of Chinas crude oil treasure incident. The contents are roughly the same, mainly to inform investors of crude oil treasure that relevant problems can be solved through litigation channels.

Through public information, the reporter of Securities Daily learned that up to now, several provincial higher peoples courts have successively issued announcements on centralized jurisdiction of civil litigation cases involving the Bank of Chinas crude oil treasure incident. According to the relevant announcement, the civil litigation brought by BOCs crude oil treasure customers with the head office and its branches of the Bank of China as the defendants will be under the centralized jurisdiction of local basic peoples courts or intermediate peoples courts respectively. Investors in all provinces and cities can submit filing applications to the litigation center of the competent court, or submit filing applications online, or submit filing applications in any provincial court through cross domain filing.

In addition to Beijing, other provincial High Court pointed out in the announcement that the scope of application of crude oil treasure customer litigation is only limited to customers in the province. Taking the announcement issued by the higher peoples Court of Jiangsu Province as an example, the announcement points out that the crude oil treasure customers of Bank of China within the scope of Jiangsu Province refer to the customers of Bank of Chinas bank card used for handling the business of crude oil treasure in Jiangsu Province; and the branches of Bank of China refer to the bank cards of Bank of China used by customers to handle crude oil treasure business within the scope of Jiangsu Province Bank of deposit. In addition, according to the amount of the litigation object, if it is under the jurisdiction of the basic peoples court according to law, it shall be under the jurisdiction of the peoples Court of Gulou District, Nanjing; if it is under the jurisdiction of the intermediate peoples court according to law, it shall be under the jurisdiction of the Nanjing Intermediate Peoples court.

At present, it has been more than three months since the negative settlement price of US crude oil 2005 contract occurred on April 20. During this period, some investors of crude oil treasure and Bank of China have been deadlocked in the settlement work, and both sides hold their own opinions. According to Securities Daily, there are three main reasons why some crude oil treasure investors are unwilling to settle down: first, after the crude oil treasure incident, during the communication process between Bank of China and investors, investors felt that they had not been respected; second, the compliance and risk control aspects of crude oil treasure product design were not accurately answered; third, investors were dissatisfied with the settlement scheme.

Securities Daily reporter learned that, in the seesaw war for more than three months, some investors of crude oil treasure have a firm attitude and have been unwilling to sign a settlement agreement; some investors have reached a settlement through negotiation with the Bank of China; another part of investors still hold a wait-and-see attitude, saying if everyone is willing to settle, I will make a settlement.. The announcement recently issued by some provincial peoples courts has brought a glimmer of light to the settlement of the crude oil treasure incident.

High difficulty in litigation

A lot of lawyers dont want to represent

Gao Yuan (not his real name) lives in Jiaxing City, Zhejiang Province. His work and life have been deeply affected by the crude oil treasure incident. He agreed to be interviewed only after the reporter of Securities Daily issued several requests for interviews. He revealed that many of his former colleagues and current colleagues, as well as friends with indirect relations, had tried to persuade them to settle down due to the crude oil treasure incident.

Gao Yuan told the Securities Daily that in April this year, with the recommendation of his friends, he first tried to buy crude oil treasure financial products. The initial amount of funds purchased was not too high. Up to the time of the crude oil treasure incident, the total investment was more than 200000 yuan, with a loss of nearly half. At that time, some friends strongly recommended it. Because international oil prices continued to weaken in April, the trend was more obvious, so I could rest assured to invest in crude oil treasure . But I didnt expect that the loss would appear in the next ten days.

Gao Yuan said that in the following period of time, he had consulted with a lawyer. As the investigation by the CIRC was still in progress, the court did not accept the case at that time. Some lawyers once said that they are willing to accept the agency, but there is no way to promote the litigation work.

Although the court has recently announced that litigation can be initiated, lawyers are reluctant to act as their agents because they feel that they are not sure of winning the case and are unwilling to do anything in vain. Gao Yuan feels helpless about the current situation.

The reason why lawyers feel that the outcome of the lawsuit is not high is that the regulatory authorities do not clearly define the crude oil treasure products, and the evidence collected and provided by the plaintiff is relatively simple, and some provisions of the purchase agreement signed initially are not clearly defined. Gao Yuan told reporters that in addition, there are many other difficulties, and many lawyers are not willing to represent crude oil treasure litigation cases.

Mr. Hou is a crude oil treasure investor who lives in Guangzhou. His experience is somewhat similar to that of Gaoyuan. Mr. Hou told the Securities Daily that after the crude oil treasure incident, relevant personnel of the Bank of China had found him for settlement through various channels, but Mr. Hou said that he could not accept the contents of the settlement agreement. The release of the relevant announcement of the court has brought a turning point for the lawsuit. At present, relevant materials are being prepared and litigation will be carried out.

I have consulted lawyers before. At first, some lawyers were very enthusiastic and enthusiastic, but with the development of the situation, lawyers seem to become negative. Mr. Hou told reporters that in any case, after collecting relevant materials, he will safeguard the maximum rights and interests through litigation.

In the process of investigation and understanding by reporters from Securities Daily, several investors of crude oil treasure said that up to now, the regulatory authorities had not made a clear statement on the investigation results of the crude oil treasure incident, nor did they reply to the situation reflected or reported by the investors. They just said that the Bank of Chinas crude oil treasure incident has started the investigation process on the basis of the preliminary investigation If any violation is found, it will be dealt with according to law. Therefore, the problems reflected at present will not be dealt with temporarily.

On the evening of April 30, the person in charge of the relevant departments of the China Banking and Insurance Regulatory Commission said that the Bank of China had been required to sort out the problems as soon as possible, strictly manage the products, strengthen the risk management and control, and enhance the emergency management ability under the abnormal market fluctuations. At present, the relevant situation is under further investigation.

An executive of a Beijing futures company told the reporter of Securities Daily that only futures companies are qualified to act as agents for overseas futures and derivatives business, and they have perfect regulatory requirements and qualification requirements, as well as strong risk control and management capabilities. In other domestic financial institutions, there are still some problems such as lack of professionalism in the experience, talents and risk control of acting overseas futures and derivatives business. The crude oil treasure incident reflects the loopholes existing in the agency of overseas financial products by domestic financial institutions, which requires the cooperation or coordination of various financial supervision departments to strengthen the standardized management of agency overseas financial products business.

Source: Securities daily.com Author: Wang Ning editor: Wang Xiaowu_ NF