VEB Prepared to Hold Companies Accountable for Investor Losses
The Dutch Investors Association (VEB) is signaling its readiness to take action against companies that fail to meet their obligations to investors, particularly as market conditions become more challenging. This comes as the organization’s new director, Gerben Everts, highlights growing concerns about speculative investments and the potential for investor harm.
Everts noted a trend of individuals, including young people, investing with borrowed money or their student loans, a practice he warns could lead to significant financial difficulties. “That’s where you can come home with a cold,” he stated, emphasizing the risks associated with such behavior.
While acknowledging the increasing activity in areas like cryptocurrencies and Special Purpose Acquisition Companies (SPACs), Everts cautioned against overstating their impact on the overall market. “But let’s not exaggerate: this is only a very tiny part of the market,” he said. He also pointed out that many investors are reacting to low interest rates on savings accounts by seeking alternative investments, but urged caution, advising them to consider investing when prices are lower.
“It shouldn’t be automatic to start investing because of low interest rates. Ensure good diversification, also keep savings for difficult times. And don’t invest in extremely speculative matters,” Everts advised.
The VEB anticipates an increase in its workload should market conditions worsen. According to Everts, the organization is prepared to initiate legal action against companies that cause damage to investors. “The chance is greater that we will then start major actions to hold companies liable for damages. In good times, companies have little trouble publishing good news. In bad times, they prefer to postpone that. We are not waiting like jackals for things to go wrong. But if investors are duped because companies do not do what they should do, we are ready for it.”
This stance underscores the VEB’s commitment to protecting investor interests and ensuring corporate accountability, particularly in a climate of increasing market volatility. The full interview with Gerben Everts can be found here.
Everts’ comments follow a recent interview in De Telegraaf, where he also discussed high stock market valuations and the evolving investment habits of younger generations.
