View more on these topics

Knight Williams directors&#39 threat to sue FSA for £50m

Directors of collapsed retirement adviser Knight Williams are to sue the Financial Services Authority for up to £50m.


They are seeking to use European human rights legislation against the FSA, formerly SIB, to compensate shareholders for damage caused by being forced into liquidation.


SIB set up a special complaints procedure which in July 1995 estimated KWAC&#39s compensation bill to 152 disgruntled investors at £2.7m, with 63 further cases to investigate. A further 275 cases emerged and KWAC&#39s advisers Grant Thornton advised it to throw in the towel and in 1995 it went into voluntary liquidation.


The directors&#39 assessment of KWAC&#39s value is based on the calculation of the £1.9bn price offered by Prudential last week for M&G.


It is understood City lawyers Lovell White Durrant have been retained and is advising financial services barrister Anthony Speaight, QC. It is understood they will use protocol one of the European Convention on Human Rights, guaranteeing the right to “peacefully enjoy possessions” which includes the right to trade.


The action will proceed only after agreement has been reached over around £1.3m left in the company&#39s coffers.


Liquidator Arthur Andersen has warned the matter will go to court if directors and the Investors&#39 Compensation Scheme do not compromise. A last meeting will be held on Thursday.


A Knight Williams spokesman says: “The shareholders will be anxious to recover the losses they suffered.”


ICS spokeswoman Pamela Marshall says: “We would like to reach an agreement. Our claim against the remaining assets is based on assigned rights from investors.”


The Knight Williams&#39 affair has so far cost the financial services industry £3.5m in ICS payouts. Directors have already taken the ICS to a judicial review over payouts it made to a former client.

Recommended

Sun Bank announce record profits

Sun Bank has announced record new business levels for 1998 with profits up 19 per cent to £3.3m.The banking operation of the Sun Life of Canada group showed increased profits of 19 per cent to £3.3m. Assets under management has also increased 13.5 per cent to £807m.Other highlights included an increase in new residential lending […]

St James Place Capital announces results

St James Place Capital has announced a 67 per cent increase in its pre-tax profits.SJPC the holding company for J Rothschilds Assurance and a 24 per cent shareholder in the Life Assurance Holdings Corporation showed total 1998 pre-tax profits of £86.3m up from £xxm in 1997.J Rothschilds Assurance which specialises in advising higher net worth […]

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment