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Discretionary manager among 19 firms placed in default by FSCS
by Elsa Buchanan on Apr 28, 2014 at 12:20
Carlisle-based discretionary investment firm Quintillion Asset Management has been placed in default by the Financial Services Compensation Scheme (FSCS) for failing to pay unpaid regulatory fees.
Quintillion has subsequently wound up operations and features among 13 financial advice firms that have been placed in default by the regulator, as unregulated collective investment schemes (Ucis) claims pile up.
Quintillion initially saw its permissions cancelled by the Financial Services Authority in July 2012 for failing to pay regulatory fees, and went into liquidation a month later. However, in March of last year, three former Quintillion clients and a former Quintillion adviser set up an action group seeking further information on an Ucis fund set up and managed by the firm.
Senior management set up the Kratos fund in 2009 to invest in intellectual property rights, targetting annual returns of 35%.
While there was no suggestion of any wrong doing at the time, the action group said up-to-date information had proved difficult to obtain due to the firm’s liquidation.
Sued Sigma targetted after claims pile up
Sigma 360 Wealth Management was declared in default on 26 March 2014 by the regulator, which means the firm is unable, or likely to be unable to pay claims against it.
Last April, nine sports stars were among 16 individuals suing Cheshire-based Sigma for £7 million. This included ex-England cricketer Paul Collingwood, who suied Sigma claiming the firm lost £300,000 in risky investments.
Collingwood claimed he and he his wife invested more than £650,000 through Sigma's director Roderick Langham but discovered that against their instructions the money was poured into higher risk unregulated investments.
Cricketer James Anderson, former Everton footballer Craig Short, ex-Blackburn striker Matt Jansen, former Norwich defender Simon Charlton and former England cricketer Matthew Maynard make up nine of 16 cases being brought against Sigma and its former directors Roderick Langham and Lee Hughes.
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