Meteor to set up admin firm for structured plans
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Meteor Asset Management plans to create a new company to separate the admin function from the plan management promotion for its structured products.
The firm has submitted an application to the FSA for a regulated firm to ringfence the admin of its own plans and third-party admin activities.
Managing director Graham Devile says it will act as a mirror company which is Meteor-branded. He says: “This is something we started seven or eight months ago ahead of everything with Keydata and NDFA as we thought it was a better way of providing investor protection.”
The firm plans to offer a range of open-ended funds, including a clean energy fund and a commercial and residential prop-erty fund managed externally.
Meteor was one of a number of providers scrutinised by the FSA in its review of Lehman-backed structured products.
The FSA says it identified significant failings with the promotional material used by some managers but Meteor’s material did not raise the same level of concerns, given its overall product range and target audience.
Meteor has £250m in assets under management and 22 staff and intends to recruit four more staff for its back-office admin function.
Lowes Financial Management managing director Ian Lowes says: “It makes sense that Meteor separates the liabilities because, in a Keydata situation, both sides are not affected and they can start doing more administration for other people.”
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