Special Report UK Regulators Face Mounting Concerns Over Their Handling of Multimillion Pound Fund Collapse

Regulators face scrutiny over their handling of the 2012 Connaught Income Fund collapse. MPs and HM Treasury to debate the FSA's actions.

By SmartSearch

Special Report UK Regulators Face Mounting Concerns

Regulators face searching questions about whether they acted effectively in the multi-million pound collapse in 2012 of an unregulated collective investment scheme (UCIS). The then Financial Services Authority’s (FSA) decisions concerning the Connaught Income Fund, Series 1, a UK-domiciled fund based in London, will come under fresh scrutiny at a debate in Westminster Hall, between members of parliament and HM Treasury this month, subject to scheduling. The Financial Conduct Authority (FCA) has said that the FSA, its predecessor body, acquitted itself well in dealing with the situation. Detractors, including investors, MPs and independent financial advisers (IFAs), have said the regulator failed to act appropriately on warnings about the misappropriation of multiple millions of pounds from the fund.


Some have found fault with the regulator, fund operators and IFAs who sold the Connaught fund, but it remains to be seen who, if anyone, will be held broadly accountable. Critics of the regulator have said it failed to investigate effectively evidence of financial misappropriation and insolvency, at Tiuta Plc (Tiuta), a regulated mortgage lender, to which the fund was lending money. The evidence was provided by whistleblower George Patellis, chief executive of Tiuta, which, like its unregulated subsidiary,Tiuta International (TIL), was a specialist partner to the Connaught fund.

Read More

 

See it in action

Book a personalised demo with an AML expert today!

musical-mycraphone-orange-background-178578480

See it in action

Let one of our highly-trained sales team demonstrate the multi-award winning SmartSearch AML product.

musical-mycraphone-orange-background-178578480