View more on these topics

Towry Law Intl could face £300m misselling claims

Towry Law&#39s offshore subsidiary is facing legal action that could result in compensation of more than £300m.

Clients in Cyprus, the Middle East and Asia have alleged that Towry Law International missold hedge funds and geared with-profits bonds.

An action group of clients in Cyprus has started legal proceedings against TLI. It argues that the IFA firm did not adequately explain the risks of gearing with-profits, including the possibility that the bank lending money could ask for extra collateral if market value reductions were imposed by geared policies.

In Hong Kong, Towry has admitted that two hedge funds which it marketed but which subsequently collapsed in September 2002 are under investigation by the Hong Kong Securities and Futures Commission.

A report by liquidator Deloitte & Touche has revealed that less than 3 per cent of the £30m assets in the global diversified trading and global opportunities trading hedge funds has been recovered.

Towry Law denies allegations of misselling and says the cases were reviewed by its compliance teams in Hong Kong and the UK. Group PR director Fiona Cornes says: “Towry Law International was not the fund manager for GDT and GOT. We conducted due diligence into the funds and offered genuine professional advice in good faith to our clients at the time.”

•Analysis, p13

Recommended

Aifa&#39s view

I would like to start with some comments on VAT. I once went on a course where I was told this is the most off-putting start conceivable to a speech or article. But since Money Marketing&#39s recent revelations, the most unlikely people have been talking to me about VAT. Will VAT be a new cost […]

Call for IFA aid on menu system

The FSA has accepted it is having problems designing a workable menu system that covers three sets of conduct of business rules and says it is not too late for IFAs to influence the debate. Managing director David Kenmir told a gathering of IFAs he wants to find a way around the complexity of its […]

Keydata Investments – Dynamic Growth Plan 9

Type: Capital-protected bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £3,000-no maximum, Isa £7,000 Term: Six years Return: Up to 3% growth for every 1% rise in index up to a maximum of 60% Guarantee: Original capital returned in full provided index does not fall by more than 40% […]

Emergency surgery for CI cover

Last year saw turmoil in the critical-illness market. The long-term future of guaranteed rates came under pressure as reassurers pulled out of the market and those supporting guaranteed rates pushed their prices ever higher. Some insurance companies were raising their prices on a monthly basis – some changing rates twice in one month. IFAs feared […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment