SGSS Assigned To Reimburse EURO 3.2 Million To DTL

Socit Gnrale Securities Services (SGSS) acknowledges the Paris Court of Appeal decision of 8 April 2009 which sets the value of the assets to be returned at EURO 3.2 million to Day Trade Leverage (DTL), a fund of the asset

By None

Socit Gnrale Securities Services (SGSS) acknowledges the Paris Court of Appeal decision of 8 April 2009 which sets the value of the assets to be returned at EURO 3.2 million to Day Trade Leverage (DTL), a fund of the asset management firm Day Trade Asset Management (DTAM).

SGSS emphasises that in the interest of protecting shareholders and in agreement with its responsibility to return assets, SGSS had already reimbursed the sum of 755,688 EUROs to DTL on 13 October 2008, even though the assets entrusted to Lehman Brothers International Europe (Lehman), whom DTAM appointed as prime broker, are frozen in a bankruptcy procedure. In accordance with the contract between DTL and Lehman, the amount paid by SGSS was determined with the help of independent experts.

The Paris Court of Appeal has instructed SGSS to immediately return an additional EURO 2.4 million based on a different interpretation of the rules concerning the amount to be reimbursed.

SGSS is therefore taking the necessary steps to comply with this decision and pay the requisite amount.

By transferring to the custodian the consequences of management decisions by asset management companies and prime brokers, this decision puts in question the rules governing relations between these parties, and probably also the depositary activity in France for funds that have appointed prime brokers. SGSS is examining options to appeal this decision.

L.D.

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