Sharing more information about the unethical behavior and fraudulent activities of AfrAsia bank:
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DO NOT EVER USE AFRASIA BANK IN MAURITIUS
- Thread starter rogers
- Start date
I am confused as to what people expected from an African Bank? 
Did they think their Structured Products investments would be safe with this bank. Does anyone have the product term sheet so I can examine it?
Normally such Capital Protected products (or structured products) are nothing more than safe zero coupon discount bonds with attached Call options. i.e Calls on the Euro STOXX in this case or whatever I guess. The safe minimum return and capital protection should come via the discounted bond whose maturity ties in with the maturity date of the structured product itself. All the further upside performance of such investments comes via the Call options element. It's normally 90-95% discount bond and 5-10% Call options or so. That's the normal way to design such products.
If the bank had used the money that should have been used - to buy safe bonds in the product, to instead buy junk bonds or a select group of companies then Afrasia has failed in their duty of care to client if they did not mention this. However such structured products are not generally for retail clients in some markets and clients buying such products should understand the risks fully. Such products being complex means its really best for accredited or sophisticated investors who can bare a loss even though this should not happen at all. However the terms and conditions when I have bought such products in the past - that use the word "Capital Protection" normally still say you may lose some of your capital. You NEED to 100% read the small print with a microscope sadly.
Anyway I hope people get some money back. In terms of the banks reputation this is same bank that took over Kingdom Bank in Zimbabwe and whose license was cancelled after they failed to meet minimum capital requirements.
Did they think their Structured Products investments would be safe with this bank. Does anyone have the product term sheet so I can examine it?Normally such Capital Protected products (or structured products) are nothing more than safe zero coupon discount bonds with attached Call options. i.e Calls on the Euro STOXX in this case or whatever I guess. The safe minimum return and capital protection should come via the discounted bond whose maturity ties in with the maturity date of the structured product itself. All the further upside performance of such investments comes via the Call options element. It's normally 90-95% discount bond and 5-10% Call options or so. That's the normal way to design such products.
If the bank had used the money that should have been used - to buy safe bonds in the product, to instead buy junk bonds or a select group of companies then Afrasia has failed in their duty of care to client if they did not mention this. However such structured products are not generally for retail clients in some markets and clients buying such products should understand the risks fully. Such products being complex means its really best for accredited or sophisticated investors who can bare a loss even though this should not happen at all. However the terms and conditions when I have bought such products in the past - that use the word "Capital Protection" normally still say you may lose some of your capital. You NEED to 100% read the small print with a microscope sadly.
Anyway I hope people get some money back. In terms of the banks reputation this is same bank that took over Kingdom Bank in Zimbabwe and whose license was cancelled after they failed to meet minimum capital requirements.
A few reasons some of these clients invested in this product: The instrument was derived from Raiffeisen bank in Switzerland. It was supposedly capital protected and one of the guarantors was Lloyds of London. So you could see why an investor would think or feel secure moving forward with this.
Putting that aside, Investors invest at their own risk or are aware that some sort of risk is involved. The bigger problem and issue at this point is that the client in spite of the fact that they had lost money in the investment, the funds have matured since and hence are expected to pay back the remaining amount of what is left. Neil Roy and his cohorts from the bank are not paying out the funds and they are just making contrived excuses under the guise of due “diligence”. That is actually true, irrefutable, criminal behavior. these people need to be held accountable.
Putting that aside, Investors invest at their own risk or are aware that some sort of risk is involved. The bigger problem and issue at this point is that the client in spite of the fact that they had lost money in the investment, the funds have matured since and hence are expected to pay back the remaining amount of what is left. Neil Roy and his cohorts from the bank are not paying out the funds and they are just making contrived excuses under the guise of due “diligence”. That is actually true, irrefutable, criminal behavior. these people need to be held accountable.
true, I agree.I am confused as to what people expected from an African Bank?
I personally learned in the last couple of years that the fastest way to figure out if you really want to bank in a particular country is to fly there.
Fly to Mauritius and tell me afterwards again about opening a Bank Account there or to use some Wealth Management Products of any local Bank.
Mauritius is either a bottom line option for outdated structures in dark grey countries like Seychelles or a necessary death you have to die if you deal almost only with Africa however even there go on the world map with your finger a little bit above and you see UAE - no issues with Africa and no money disappearing - at least not with local UAE Banks.
Fly to Mauritius and tell me afterwards again about opening a Bank Account there or to use some Wealth Management Products of any local Bank.
Mauritius is either a bottom line option for outdated structures in dark grey countries like Seychelles or a necessary death you have to die if you deal almost only with Africa however even there go on the world map with your finger a little bit above and you see UAE - no issues with Africa and no money disappearing - at least not with local UAE Banks.
Different banks have different uses (and some have no use).
For transactional business banking, banks in Mauritius can be fine. Obviously not a first-hand choice for most businesses, but better than a lot of other choices on the market.
Also fine for small personal banking, especially for residents of places with even worse local banking.
But investments and wealth management? They offer no compelling advantage.
For transactional business banking, banks in Mauritius can be fine. Obviously not a first-hand choice for most businesses, but better than a lot of other choices on the market.
Also fine for small personal banking, especially for residents of places with even worse local banking.
But investments and wealth management? They offer no compelling advantage.
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