Thousands of investors in the Eurolife secured bond are being asked to vote on a partial repayment plan to recoup some of the £17m losses.Around 2,300 investors should have been repaid capital on January 23 but have had to wait three weeks for news of the restructuring proposal. The proposal issued by Eurolife involves the repayment to bondholders of between 60 per cent and 86 per cent of the original issue price, which it claims, taken together with the interest received already, will give a minimum total repayment of between 86 per cent and 93 per cent of the original issue price over the next four-and-a-half years. This would be funded by the proposed disposal of assets and subsidiaries of Eurolife Assurance Group. If bondholders do not vote for the proposals, then the company would immediately enter into administration and the firm would not be covered by the Financial Services Compensation Scheme although IFAs who advised on the bond could be declared in default of the FSCS. The bond is a structured debt lent to Eurolife Assurance through subsidiary company Eurolife Capital Funding. Last year, Eurolife admitted that the firm could not repay the debt. The FSA has provided a question and answer sheet for investors on its website while Nvesta, part of Eurolife Group, has also issued a statement on its position in the proposal. In a letter to investors, Eurolife managing director David Wootton apologises for the delay in informing them of the resolution. He says: “This is the first occasion that any investor has received less than they were due from any group company and although many of the reasons for this have been outside my control, I would still like to sincerely apologise to you personally for this failure.”
The FSA has said that it is prioritising mortgage, debt consolidation and equity release financial promotions this year.Regulators will look at promotions produced by mainstream lenders, equity release providers, sub-prime lenders and brokers for all these providers as part of its campaign.The FSA will also look at firms’ preparatory work for child trust funds, and […]
The financial services and markets tribunal has upheld the FSA’s decision not to authorise three individuals and their firm to sell life insurance.
Imagine a situation where you can claim anything you like in a document and, so long as it is outside the bounds of reasonable expectation, that claim will probably not come back to haunt you.
Last week, I looked at outright gifts and conditional gifts of an interest in property made by the first of a couple to die.
In this short video, Head of Multi Asset at Royal London Asset Management Trevor Greetham looks at how to configure portfolios to match different risk appetites, explaining the tools he uses to manage risk. Click here
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Three advice firms have stopped giving pension transfer advice following work by the FCA over the future of the British Steel Pension Scheme. A statement this afternoon details the FCA’s “information gathering exercise” to identify the firms that have been most active in advising people to transfer out of the scheme. The regulator got information from […]
The FCA has launched a consultation on its approach to authorisation and competition, which will be open to responses until March next year. Following the launch of the FCA’s mission in April, the approach documents are the second and third in a series of papers explaining how the watchdog tackles regulation. The first document, the […]