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Kitchen demands to know where Lifeboat cash went

Lifeboat&#39s former chairman David Kitchen is demanding an explanation of what happened to the £3m funding facility which the IFA and nonregulated network rec-eived in February.

Kitchen is asking Life-boat&#39s directors to explain what went wrong since a facility to draw down £3m in funding was secured in February when the board was promising sales of £30m and a profit of £1m by March 2005.

In a letter to Money Marketing, Kitchen says £2m of the funding provided by Bank of Scotland was spent by Lifeboat in the four months since March. He asks where the money went and how much of it was spent on salaries and bonuses for directors.

Kitchen says he wants to know why Lifeboat failed to achieve its targets, why it failed to ens-ure the survival of the firm and why there was a zero return to shareholders in the four months since “this very upbeat public promise”.

Former Lifeboat chief executive Bill Wynn says after FSA concerns over its capital adequacy – the £2m spent was debt, not equity – Bank of Scotland withdrew its funding and Lifeboat went into administration.

Kitchen says: “I, like other shareholders I am sure, am looking forward to a full explanation.”

Wynn says no directors have received equity stakes in Destini and refused to comment on spending on salaries and bonuses for Lifeboat directors.


Broker uncovers LTC error by PPP

Axa subsidiary PPP Lifetime Care has been inc-orrectly calculating the annual indexation on an immediate funding long-term care policy. Cooper Johnston Associates director Peter Cooper wrote to PPP after discovering the error which resul-ted in a benefit payment to his client being reduced by about £150 after four years of contributions. PPP has paid the […]

Merger details are spelt out as chiefs urge yes vote

LIA president David Batchelor and Sofa chairman Nick Bamford have written to their 25,000 members to reveal details about the proposed merger between the two bodies and urge a Yes vote. The new body, which will be known as the Personal Finance Society, will have a single structure of designations, eliminating the LIA&#39s (dip) award […]

&#39Clarity is key for mortgages&#39

A debate by figures across the financial services industry on making informed decisions about mortgages has found that education and clarity of information are key to consumers&#39 financial capabilities. The meeting on Thursday last week, hosted by Treasury select committee chairman John McFall, MP, in the House of Commons, promoted clear standard of information on […]

Schroders – Schroder S&P Strategic Balanced Portfolio

Type: Unit trust multi-manager fund of funds Aim: Growth by investing in a portfolio of 12-15 funds Minimum investment: Lump sum £1,000 Investment split: 54.7% Uk equities, 10.5% Europe ex UK, 10% sterling bonds, 6.6% Japan, 5.3% Asia ex Japan, 3.5% US, 3.3% emerging markets, 6.1% cash Isa link: Yes Pep transfers: Yes Charges: Initial […]

State of the markets: global growth

In conversation with journalist Alexis Xydias, Artemis Global Growth Fund manager Peter Saacke discusses the state of global markets and how he is positioning his fund. Peter gives his views on the growth potential of US, Europe and emerging markets, each of which is on a different stage of the road to recovery. And with a […]


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