View more on these topics

Connaught says Ucis cash will not be paid on time

Connaught Asset Management has told investors in one of its unregulated collective investment schemes that they will not get their latest interest payments on time and has temporarily suspended a second Ucis fund.

On March 7, Connaught, which is not regulated by the FSA, suspended one of its three Ucis funds, the income fund series one, while it commissioned a review into the true value of the fund. It has now contacted investors to tell them the fund is unable to pay their scheduled quarterly interest payments after bridging lender Tiuta, which is backed in part by the fund, told the asset manager it will be late paying its own interest payments.

Connaught says the review of the fund will be completed “very shortly”. It says it has a charge on every property in the fund and additional guarantee and debenture agreements.

Connaught says it has also temporarily suspended the income fund series two to “avoid any speculation and uncertainty”. It expects the fund to resume normal dealing by May 14. The income fund series one has about £120m of assets while the series two fund has about £18m. The income fund series three, which has £10m of assets, has not been affected.

Chairman Mike Davies was the compliance officer of Tiuta, which pulled out of regulated mortgage business in May last year, between August 2008 and July 2010. Davies says Connaught is taking steps during the suspension of the income fund series two to ensure this does not happen again.

Tiuta declined to comment.

AWD Chase de Vere head of communications Patrick Connolly says: “This is another example of the risks involved in investing in unregulated funds, where you have little comeback if things start to go wrong.”


Turner wants flexibility in Euro regulation

FSA chairman Lord Adair Turner has warned that European regulation must comprise the right mix of financial integration and flexibility for national powers. The International Monetary Fund has called for progress towards a pan-eurozone approach to issues such as the orderly wind-up of failed banks, compensation schemes and bank supervision. Speaking at a Central Bank […]

RSM Tenon chairman steps down after three months

RSM Tenon has announced chairman Adrian Martin and deputy chairman Michael Findlay are stepping down from the board after only three months. Martin was appointed chairman in January 2012, with Findlay as deputy chairman as well as taking on the role of senior independent director. The pair took on their roles following the decision of […]

Whitechurch moves into profit for 2011

The Whitechurch Network has posted a £58,848 pre-tax profit for 2011 after posting a £103,077 loss in 2010. The network saw a 4 per cent increase in turnover from £12.5m in 2010 to £13m in 2011. A statement in the firm’s accounts says: “We have a healthy number of advisers and most are either level […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. I feel so for anyone who has invested with Connaught. Non-regulated fund distributed through a non- regulated bridging ‘lender ‘? Recipe for disaster I’d say. How much more bad news is to come out of Tiuta towers? Maybe ‘chairman’ Nicholas should stop spouting so much hot air in the press? Maybe it is time to give another Mini away? Maybe

  2. Does anyone have any idea what will happen in this situation? Is Tiuta solvent?

  3. The Connaught Tiuta model was flawed from the outset. The reckless Tiuta lending was a recipe for disaster at LTV’s which had absolutely no chance of refinance. The present state of the market does not lend itself to sales in the short term offered by these types of loans. Deduction of interest upon the advance of the loan does little more than offer short term interest cover to the investor and pain when the loan expires without sale or refinance.

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