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Curtains to close on Kilminster

A meeting in Bristol may spell the end of the Kilminster Financial Management network, which could go into liquidation next month.

Malcolm Kilminster, who has apparently just embarked on a five-week holiday to America, sent a note through insolvency practitioner B N Jackson Norton on June 6 inviting creditors to company offices on July 16.

The meeting will hear a statement of the company’s affairs for the purpose of nominating a liquidator and of appointing a liquidation committee.

No doubt KFM creditors and shareholders will be less than impressed with the news as many claim they are owed large sums of trail commission.

Documents from a KFM EGM earlier this year show the network was facing two potential litigations totalling around £300,000. If liquidation does occur, responsibility for these claims could fall upon the Financial Services Compensation Scheme if they are successful.

Last week dealt a devastating blow to the many advisers who have been lobbying the Financial Ombudsman Service to scrap charges for complaints that are not upheld.

The Court of Appeal rejected a recent County Court judgement which declared it unfair for advisers to pay a FOS case fee if they were found innocent.

A FOS spokesman says: “The FOS is pleased that the Court of Appeal has provided clarification on this issue. It affected everyone which is why it was important this clarification was given.”

In the original ruling, Judge Rutherford of Trowbridge County Court found the FOS’s practice of charging firms for the cost of dealing with complaints that are rejected to be “unfair in principle and in practice”.

Judge Rutherford ruled that “no reasonable public body would maintain and enforce such a rule”.

The ombudsman service brought the case against IFAs Brian and Dolly Pickering after they refused to pay four case fees of £360 each.

And finally, the end of this year will see the launch of a new International Centre for Financial Regulation.

The independent, industry-led project was announced last week by Economic Secretary and City Minister Kitty Usher.

Based in London, the ICFR will carry out and sponsor training and research into cutting-edge regulatory issues, support the development of new regulatory approaches and international standards and organise debates on the key regulatory issues facing industry practitioners and national regulators alike.

Standard and Poor’s executive managing director Barbara Ridpath will be chief executive officer.

Nearly 20 financial services firms and the City of London corporation banded together to raise more than £5m to support the ICFR’s establishment. The Department for Innovation, Universities and Skills has also committed £2.5m to the project.

Usher says: “I welcome the strong support from across the City for the establishment of this new centre of excellence. As a world leader in financial services, it is important that Britain continues to be at the forefront of new developments in best practice in this sector.”

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