Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Discretionary manager among 19 firms placed in default by FSCS

2 Comments
Discretionary manager among 19 firms placed in default by FSCS

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.

Anderson is claiming £100,000, while Short, who played for Derby, Blackburn and Everton, is suing for losses of £1 million.

The sports stars were advised to invest in a number of unregulated funds such as Matrix Asset Backed 2, a hedge fund hit in the credit crunch, and Aramid Entertainment, a Cayman Islands based fund involved in film finance.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter