View more on these topics

German IFA probed on accounting

German IFA giant MLP&#39s headquarters in Heidelberg were raided last week after an anonymous tip-off prompted the public prosecutor&#39s office to seize documents relating to its reinsurance business.

In response, the firm, which aims to become a national IFA in the UK, published details of an audit conducted by Ernst & Young giving it a clean bill of health.

The audit was commissioned by the firm to restore investor confidence following German press speculation about its accounting practices.

MLP, which has 40 IFAs in six London branches, suffered a further blow when BNP Paribas issued a research note downgrading its stock.

BNP Paribas&#39s note says: “The opening of an investigation by state prosecutors into MLP&#39s accounting on the day the Ernst & Young special audit confirmed that MLP&#39s insurance practices are in order is the most unfortunate timing. We had expected that the positive outcome of the audit would restore investor confidence and trigger a strong rally of MLP shares.”

MLP managing director for London Dirk Bohsem says: “The results show that in the opinion of Ernst and Young, our business is fine. This investigation will have no impact on our business in Germany or London. We have been operating in Britain since April 2001 and are currently recruiting IFAs to expand our business.”

Recommended

Trustees in the balance

Over the last few years, the responsibilities of trustees have become more clearly defined. In simplistic terms, a trustee must manage and administer trust assets as if they were his own. This suggests a balanced approach which, even in the current climate, must include a good dose of equities.Nobody seems to have questioned the capacity […]

Cazenove and AIG provide multi-manager bond

CAZENOVE INVESTMENT FUND MANAGEMENT CAZENOVE UNIVERSAL INVESTMENT BOND Aim: Growth and income by investing in four multi-manager fund of funds Minimum investment: Lump sum £50,000 Investment split: 100% in Cazenove universal UK growth portfolio, Cazenove universal balanced portfolio, Cazenove universal growth, portfolio or Cazenove universal international portfolio (ex-UK funds). Income facility: Yes Charges: Initial 4.5%, […]

Farthing and Euro team leave Old Mutual

Old Mutual Asset Management has parted company with its four-man European team headed by Adrian Farthing.It is believed that the team has been replaced by Omam with immediate effect.The fund manager would only say that institutional manager David Ross would take over the running of Farthing&#39s three funds.The team has been responsible for the European […]

Retired taking lion&#39s share of pensions on company insolvencies

Members who have not reached their normal retirement are losing out to those already retired in cases where their employer has become insolvent, according to Independent Trustee Services director Terry Monk.ITS says it supports the regulation of independent trustees of pension funds and is calling upon Opra to work with the Association of Corporate Trustees […]

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment