Henderson could face a bill of at least 43m for compensating clients of Towry Law International allegedly missold failed, high-risk investments.But the 1,000 clients of the now closed firm are hoping for as much as 80m. TLI is believed to be close to reaching an agreement with the Hong Kong regulator over compensating clients who inv-ested in geared with-profits bonds and the Circus Capital protected growth fund through TLI advisers. Set up in 1999, the Circus Capital fund invests in with-profits bonds. The dollar ser- ies one version of the fund had an MVR of 73.52 per cent on January 15. Last March, Henderson chief executive Roger Yates told analysts that the firm had put aside 43m to meet possible claims from TLI clients and is working with Hong Kong and “other relevant regulators to ensure all legacy product issues are dealt with appropriately”. Henderson sold Towry Law last December but retained TLI and its potential liabilities. The negotiations with the Hong Kong Securities and Futures Commission started last April and followed Towry Law’s decision to close its intern-ational arm in 2004. In 2004, Towry Law agreed to pay 21m compensation to investors in two hedge funds recommended by TLI which subsequently delisted – global diversified trading and global opportunities trading. An action group of clients in Cyprus has vowed to take legal action against Towry Law in the UK if it does not get compensation through the Hong Kong regulator after Cyprus passed the matter over to Hong Kong, where TLI had its headquarters. Henderson refuses to com-ment on the matter.