UBS cannot yet close the chapter on the Greensill scandal. Affected investors are dissatisfied with a settlement offer and are leveling serious accusations.
UBS had hoped to close the troubling chapter of the Greensill scandal by offering investors a payout of 90 percent of the funds they had invested in the Greensill funds.
However, as reported by the «Financial Times» on Monday, this offer has failed to convince a group of investors. They also complain that they have been denied access to important documents.
Approaching the Luxembourg Financial Regulator
«The latest offer to investors from UBS should only be considered with the benefit of all documentation concerning the fund managers’ adherence to their regulatory responsibilities at the time,» the British newspaper quotes a lawyer representing the investors. They have therefore approached the Luxembourg financial regulator to request access.
According to the terms of the offer, which expires at the end of July, investors must waive other legal claims, according to the «Financial Times.»
As the paper further writes, the offer has been well received by most investors. However, one group, which invested around $80 million in the funds and has now hired lawyers, is not satisfied. The group argues that under Luxembourg law, fund managers must compensate investors for all losses in cases of miscalculation or violations of investment rules.
Credit Suisse Scandal
The Greensill case was one of the last major scandals of Credit Suisse. Risky dealings with the supply chain financier led to CS suspending trading in the so-called ‹Supply Chain Finance Funds› in March 2021.
So far, investors have been refunded $7.4 billion out of the original $10 billion fund assets as part of the fund's liquidation.
