View more on these topics

Bridging lender Tiuta reveals huge losses linked to Ucis funds

Bridging lender Tiuta made a pre-tax loss of £37.8m in the 18 months to 30 September 2011 as the firm suffered heavy losses and writedowns on loan books associated with two Connaught Ucis funds.

Tiuta’s loan book was financed in part by Connaught Asset Management’s income series one fund, which raised over £100m from investors and had a requirement that the lender would finance any loan losses.

The firm’s accounts show a deficit of nearly £36m on 30 Sept which has reduced to £13.2m through the capitalisation of shareholder loans that has seen the Savva family take an 88 per cent stake. The directors say the firm will return to profit in the next financial year. It made a pre-tax profit of £957,767 for the year ended 31 March 2010.

In January 2011 BDO conducted a review of the group’s financial position which identified a liquidity shortfall. Former chief executive George Patellis left in late February.

The accounts state loan default levels increased due to the economic climate to become “untenable as the size of the series one borrowing and related loans dwarfed any reserves of the group”.

The series one fund was suspended in March as interest payments could not be made to investors and the series two fund, which raised £18m, was suspended soon after. In June a decision was made to wind the funds down and the loan books were sold to Connaught for £1 each. Investor losses have yet to be established.


64 funds with major positions in Standard Chartered

More than 60 funds have a major holding in allegation-hit Standard Chartered, with the bank a popular holding of Aberdeen’s Asian equities team. Standard Chartered’s share price plunged this week after the New York State Department of Financial Services alleged the bank hid £160bn in transactions linked to Iran, which violates US law. Data from […]


FOS rejects calls for claims firms to pay case fee

The Financial Ombudsman Service has confirmed its intention to increase the number of free cases firms are allowed before having to pay a case fee from three to 25 per year, but rejected calls for claims management companies to pay a fee. Currently, firms have to pay a £500 case fee for the fourth and […]

Are infrastructure funds the income safe haven?

Infrastructure funds can offer investors a good source of income, but what are the risks attached to these funds? Infrastructure funds fall into two camps: closed-ended vehicles that buy the actual infrastructure assets themselves and rely on the cashflow from those assets for returns, and open-ended funds that invest in listed infrastructure and infrastructure-related securities. […]


Barclays set to overhaul its bonus structure

Barclays is reportedly considering a new pay scheme that would reduce bonuses for executives and defer payments until they retire. The Sunday Times reports that large payouts would be held in shares and not paid out until the executive retires or leaves the bank. The scheme is based on a new bonus scheme at HSBC, […]


Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. Connaught Action Group 8th August 2012 at 11:39 am

    Check out this website:

  2. For those of you with clients or are invested directly in the Connaught funds detailed above you may wish to have a look at the following web site:

  3. Neil F Liversidge 8th August 2012 at 2:22 pm

    Phew! Another big bullet dodged. I had the spiel from Connaught about how copper-bottomed the funds were, how the lending would only be to top notch borrowers, how debentures were in place, and al the rest. But it just didn’t smell right. Maybe one day the CII wil devisa a diploma module on ‘smeling a rat’!

  4. It would be interesting to see exactly where the £100m went.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm