Treatment Of Investors Research Articles

ЛЕГІТИМНІ ОЧІКУВАННЯ ІНВЕСТОРІВ У СФЕРІ ВІДНОВЛЮВАНОЇ ЕНЕРГЕТИКИ

The article aims at studying the approaches of international investment tribunals to the definition and protection of the legitimate expectations of investors in the renewable energies sector in case where a host state changes or cancels the previously established investment incentive schemes. The author also provides recommendations for Ukrainian authorities regarding the treatment of investors in order to settle existing conflicts and prevent them in future. The research methodology consists of the system-structural method, methods of analysis and synthesis, comparative and prognostic methods. At the beginning of the 21st century, many countries (including those in the European Union) enacted schemes, such as feed-in tariffs (FITs) or other special rates, to encourage long-term investment in the renewables. Confronted with a global financial crisis in 2008–2009, however, many of these countries reduced or eliminated altogether their original investment incentive frameworks. These amendments have prompted a significant number of investment disputes based on claims of breaches of investors' legitimate expectations over the stability of remuneration schemes, alleged to amount to an infringement of the fair and equitable treatment (FET), under the second sentence of Article 10 (1) of the Energy Charter Treaty. Ukraine now faces the same problem in its own relations with investors in renewable energies. Therefore, it is necessary to carefully study the existing (particularly negative) foreign experience in order to mitigate the risks of both losing disputes and inhibiting the development of the "green" energy sector. In order for the state not to bear the burden of compensation payments over the lawsuits by investors, changes in the regulatory regime should be proportionate, reasonable, non-arbitrary and in the public interest, but not radical or unpredictable. At the same time, any lawsuit by an investor poses a risk for the state, since the outcomes of the investment disputes resolution are unpredictable. In this regard, proper communication and negotiations with investors are extremely important to prevent lawsuits, which also carry the danger of creating a negative information background for green energy.

Valuation discrepancies in money market funds during market disruptions: evidence from Egypt

Money market funds (MMFs) are generally considered safe investment vehicles, but the 2008 global financial crisis showed their vulnerability during market disruptions resulting in increased regulatory oversight across developed markets to protect investors. This paper examines the effect of MMF accounting regulation on investors in an emerging market context. It hypothesizes that the continued use of amortized cost methods to account for MMFs’ Net Asset Value (NAV) during market disruptions can result in unfair treatment of investors. The Egyptian money market provided a unique laboratory to test this hypothesis over a prominent economic crisis that combined high levels of interest rate volatility with a redemption-only structure for MMFs. A model that measures the discrepancies between the amortized and floating market NAVs per certificate for various money market portfolios (MMPs) simulating MMFs of different durations is tested using the Egyptian data. A sharp rise in interest rates is found to lead to significant discrepancies between the amortized NAV per certificate relative to their floating value. Serial investor redemptions of the certificates compound the discrepancies, but only certificate holders remaining in the funds bear the accumulated losses, which are augmented for portfolios with higher durations. The results suggest that emerging market regulators consider introducing the rules that switch to floating NAV calculations for MMFs during such periods to promote equality across all investors.

Investor Sophistication as a Systematical Criterion in the Securities Act of 1933

Investor sophistication is an essential concept - not only by the drafter of the Act, but by courts and the SEC as well - to justify a distinct treatment of investors by the law. Therefore, this concept is reflected in a variety of regulatory areas within the Act. Sophistication is clarified by several proxies that are intended to make the concept applicable in practice. As it was shown, these approximations may reflect the meaning of sophistication - which is intrinsically unsharp - to gross and therefore induce gaps of protection. Various safe harbor Rules of the SEC make intensive use of these proxies for purposes of legal certainty, and thereby depart from the concepts of protection based on investor sophistication originally developed by courts.

The Effect of Economic and Financial Risks on Foreign Direct Investment in Jordan: Multivariate Analysis

The main objective of this study is to examine and analyze the effect of the economic and financial risks on foreign direct investment in Jordan during the period (1982–2012). We used Multivariate Data Analysis (MVA) to test the hypotheses of this study. The analysis has shown that there is significant effect between all independent variables which consists of economic risks model, financial risks model and foreign direct investment. The economic risks model includes gross domestic Product (GDP) per head of population, the real annual growth rate of GDP, the annual inflation rate and current account balance as a percentage of GDP. The financial risks model includes foreign debt as a percentage of GDP, foreign debt service as a percentage of export of goods and services (XGS), current account as a percentage of (XGS) and exchange rate stability. Finally the researcher suggests several factors that would increase the Jordanian investments, the important factors are: giving investors some advantages such as tax exemptions, improving domestic infrastructure, adequate legislation, regulation and safeguard and acceleration the treatment of investors.

Investor Protection in Insolvent Credit Institutions under Latvian Law

Ongoing disturbances in the world economy have revealed the necessity for clear and effective rules for protecting investors in insolvency situations. In Latvian law, there remain gaps and inconsistencies that should be addressed in order to reach a desirable level of transparency, predictability, and legal certainty regarding the treatment of investors in credit institution insolvency situations.

INTRA-EU INVESTMENT AGREEMENTS AND ARBITRATION: IS EUROPEAN COMMUNITY LAW AN OBSTACLE?

AbstractBilateral Investment Treaties (BITs) between Member States of the EU have long been all but non-existent. However, with the two most recent rounds of EU enlargement about 190 BITs have become intra-EU. This has not only raised doubts about the conformity of these BITs with EC law, but has also prompted some (including the European Commission) to question the admissibility of arbitral proceedings brought under these Treaties. The article assesses the mechanisms through which a conflict between intra-EU BITs and EC law can become relevant from an arbitration perspective. It then analyses the principal alleged inconsistencies between BIT provisions and EC law: differing substantive standards of investment protection, unequal treatment of investors from different Member States and the lack of control by the ECJ. The discussion of these issues in the light of the relevant EC Treaty provisions shows that EC law should not, in fact, be regarded as an obstacle to intra-EU investment arbitration.

High-Watermark Fees, Free Rides and Equal Treatment of Investors

According to the International Organization of Securities Commissions 'a performance fee should not result in a breach of the principle of equality of investors'. We present a framework for evaluating performance fees and equal treatment of investors. We investigate 4 different high-watermark fee specifications. If high-watermarks are not tracked individually for each investor free ride opportunities may arise. We replicate high-watermark fees and free ride opportunities by a building block approach based on forward start Lookback options. We compare the high-watermark fee hedging costs of risk neutral investors with different planned entry times but the same planned holding period by calculating the expected values and entry-time-Thetas of the corresponding Lookback options. We propose an equalization method for mitigating unequal treatment due to free rides. The model for the expected free ride can be used to quantify the manager's opportunity costs per investor of not tracking individualized high-watermarks.

The importance of communicating cause-related marketing (CRM) strategies in South Africa

ABSTRACT It is the contention of this article that South African companies should use a cause-related marketing (CRM) strategy to advance their business objectives, at the same time communicate their involvement in uplifting and investing in society. Communicating corporate socially responsible activities is important for a number of reasons. It is necessary to create awareness and an understanding of current corporate social responsibility (CSR) policies, strategies and attitudes, to define an integrated strategy for the future. These policies and activities must be communicated internally and externally in order to enhance an organisation's reputation, loyalty and relationship among all stakeholders. This could ultimately lead to potential increases in customer traffic and sales that will positively affect the bottom line and lead to bigger corporate social investments by a company. Besides these advantages, effective cause-related marketing strategies could also secure preferential treatment of investors within a highly competitive business environment.

The Quest to Define "Fair and Equitable Treatment" for Investors under International Law

This article critically analyses the latest Awards in the NAFTA Chapter 11 Pope & Talbot case. The Final Award in Respect of Damages, issued on 31 May 2002, contains very interesting developments in the proper interpretation to be given to the concept of "fair and equitable treatment" included in the "minimum standard of treatment" clause of NAFTA Article 1105. Is "fair and equitable treatment" a concept which should be applied in addition to the minimum standard of treatment of investors under international law? Is there a threshold limitation whereby governmental conduct complained against by foreign investors must be "egregious" or "outrageous" in order to breach this minimum standard? The Award also tackles the question of the validity and effect of the Nafta Commission's "Interpretation" of Article 1105, issued on 31 June 2001, as well as the interaction of this Interpretation with the "most-favoured-nation" clause contained in NAFTA Article 1103.