Tag: Peter Kenny Old Mutual International

  • Fraud Trial Against Pension Scammers in Spain

    Fraud Trial Against Pension Scammers in Spain

    The Spanish criminal trial of so-called “financial advisers” in Denia has exposed the widespread fraud routinely committed in offshore financial services for over a decade.

    This particular stage of this particular trial may be directed at just eight members of Continental Wealth Management and Premier Pension Solutions. For now. But the case – brought by Pension Life – needs to be extended to all parties who have committed similar offences in offshore financial services.

    Spain is the second-largest expat jurisdiction in the world – after Australia. More than three quarters of a million British expats have settled in the Spanish sunshine. That’s over half the total in the whole of Australia. And these Spanish-resident expats are sitting targets for pension scammers.

    It is not unusual for Brits to be suspicious of foreigners in any country. Expats typically veer towards their own countrymen. They are notorious for being suspicious of foreign food and customs. Hence, the depressing fact that it is British scammers who relieve British victims of their pensions and life savings.

    And this is why so many British expats – especially in Spain – fall prey to bogus “financial advisers” flogging bogus life assurance policies provided by bogus insurance companies – like Quilter International headed up by Peter Kenny.

    The facts of this criminal case are indisputable. One thousand victims were scammed by Continental Wealth Management. Between 2009 and 2017, these victims lost many millions of pounds’ worth of pensions and life savings. And much of this was facilitated by Quilter International (formerly Old Mutual International).

    So how were these losses caused? What on earth went wrong? Financial services – in any country – should be a safe industry which investors can rely on. Depend on. Why have so many expats – not just the Continental Wealth Management victims – lost so much money?

    Who and what is to blame for the loss of hundreds of millions of pounds?

    The short version of the answer is: “COMMISSIONS”. Offshore advisers get rich by selling products for commissions. What they don’t sell is independent financial advice. Proper independent advice (provided by a correctly and properly qualified and licensed adviser) is about recommending an appropriate investment strategy which is in the best interests of the client. And, of course, charging a reasonable and commercially-viable fee for such advice.

    But that rarely – if ever – happens in offshore, expat jurisdictions. What is cleverly presented as “advice” is generally just a dishonest ploy to sell a client unsuitable products which they don’t need and that will make the salesman the most commission.

    The orchestrators, facilitators and architects of all this fraud are the “life offices”. In practice and in reality, these companies are more about death than life. Their business is about destroying life savings and pensions – while enriching the pockets of fraudsters.

    There are various ways to combat this widespread fraud facilitated by the life offices:

    • Bring criminal proceedings against ALL those who have defrauded their clients – from bogus, unlicensed advisory firms to the life offices themselves
    • Ensure all so-called advisory firms (sometimes calling themselves “wealth managers”) are correctly licensed in the jurisdiction where they provide advice
    • Make it mandatory for all advisers to be properly qualified to provide financial advice
    • Ban all firms without an investment license from providing investment advice
    • Educate consumers to only use advisory firms which openly disclose their professional indemnity insurance on their website

    The bald truth is that if the life offices – such as Quilter International, Friends Provident International and RL360 – were closed down, this widespread fraud would stop.

    The only way this fraud keeps going so vigorously and relentlessly, is the terms of business given by the life offices to the scammers. And, of course, the fat commissions the life offices pay to them. As well as the toxic, risky, high-commission-paying investments the life offices put on their “platforms” for the scammers to use (and abuse).

    You only have to look at Continental Wealth Management to see how quickly a scamming firm will collapse once life offices withdraw terms of business. The life offices are the life blood of scams and scammers.

    Without the facilitation of the “death” offices (Quilter International, Generali, SEB etc.) frauds such as Continental Wealth Management could not have taken place. The blood of all those who have died wretched, lonely deaths – and those who are suicidal – is squarely on the hands of Peter Kenny and his various cronies.

    The bank statements of Continental Wealth Management show the repeated amounts of fat commissions paid by Quilter International, Generali and SEB. And these amounts were paid willingly and cheerfully in the full knowledge that every payment meant more lives damaged; more funds destroyed; more miserable deaths.

    Quilter and their associates had reported on the victims’ losses for a decade; produced valuations and transaction histories evidencing the repeated, relentless fraud. And yet Quilter (and the other death offices) did nothing – just kept on and on facilitating the same fraud: repeat, repeat, repeat.

    While the “advisers” from Continental Wealth Management and Premier Pension Solutions stand trial – the hundreds of victims have to listen to the defendants’ offensive denials and excuses. But, worst of all, the distressed and impoverished victims know that the life (death) offices should also be on trial – standing shoulder to shoulder with the scammers themselves.

    The cause of the investment losses in the Continental Wealth Management case was almost exclusively toxic, high-risk (and high-commission) structured notes. These are complex investment instruments called “derivatives” and should only ever be used for professional or sophisticated investors. They are certainly completely unsuitable for ordinary people (who are classed as retail investors) or for pension schemes.

    High-risk structured notes are big business for the death offices. Quilter International (formerly Old Mutual International) has historically onboarded over 100 new structured products per month. In the case of the Continental Wealth Management fraud, it was the structured notes – from Leonteq, Commerzbank, Royal Bank of Canada and Nomura – which caused the terrible investment losses. These toxic, high-commission investment products – so beloved by the scammers because of the high commissions – were responsible for the destruction of millions of pounds’ worth of pensions and life savings.

    Quilter International knew perfectly well that these toxic products – totally unsuitable for retail investors – paid 8% commission to the scammers and a further 8% to 10% to the “arrangers”. They knew perfectly well – and admitted internally to their “asset review committee” – that these products were risky and “not good value”. But they still allowed the scammers (to whom they gave terms of business) to keep selling them.

    Quilter has also admitted that they had 2,047 structured products in total, and that the average holding per product was £243,654.03; that the smallest holding was £67.54 and the largest holding was £5,350,833.60. Quilter was concerned that there was a reputational risk to Quilter for allowing these structured products to be held within their offshore bonds. They also acknowledged that these products carried excessive commissions and were causing “suboptimal customer outcomes”. However, their concern for their own “reputational risk” did not extend to concern for their victims.

    Quilter has tried to wriggle out of culpability for the victims’ losses by claiming that investment product “suitability” is the responsibility of advisers. And that these so-called advisers are participating in a “race to the bottom”.

    However, the advisers are mostly scammers to whom Quilter has cheerfully given terms of business. And they are winning the race to the bottom by several lengths. If Quilter withdrew terms of business from all the scammers, the race wouldn’t even take place at all. In fact, all Quilter would have to do would be to ensure that all advisers are qualified and licensed – and that investors’ risk profiles are correctly respected – and the fraud would stop instantly.

    But until Quilter and all the other death offices are put on trial for fraud themselves, this crime is going to continue. And victims are going to keep losing their pensions and life savings – and dying in abject poverty.

    As an interesting post script, Quilter have posted a warning about scams on the internet. Their disingenuous claim that “Your security is our priority, so we have reacted quickly to help you and the financial advisers we work with to spot fraudsters” is ironic and cynical. Quilter themselves routinely work with fraudsters who pose as financial advisers – and who have no license or qualifications to provide financial advice.

  • Quilter: Critical or Hypocritical?

    Quilter: Critical or Hypocritical?

    • Fraud Alert
    • Quilter Logo

    Recent data obtained by Quilter (formerly Old Mutual International and Royal Skandia) under a freedom of information request has further highlighted the issue of financial education, or rather the lack of it, with many casualties of fraud ‘unaware they may have fallen victim‘ to such a scheme.

    Quilter plc (the well-known asset/wealth management company, “life office”, and old friends of ours) has recently acquired figures clearly showing an absence of any kind of appropriate action from the ironically-named Action Fraud organisation. This data demonstrates that despite 400 pension fraud reports having been submitted to the inept crime-reporting centre in 2019 alone, as few as 26 of these cases were passed on to the police to investigate – representing just 6.6% of the total cases they handled.

    YearPension fraud reports received by Action FraudPension fraud reports reviewed by NFIBPension fraud reports disseminated to the police and other agencies
    20151353208208
    20165479797
    20174096262
    20183464638
    20193944626
    Up to July 2020161*N/K** 24*
    Christopher Copper-Ind @intlinvestment
    14 September 2020

    *Figures omit February 2020 bulk upload of retrospective reports to avoid misrepresenting case volumes in 2020.

    ** Figure not disclosed in the FOI response

    These same figures show that this year (as of July 2020), of the 161 pension fraud reports that were received by Action Fraud, only 24 have been disseminated to the relevant police force for investigation after the information was reviewed by NFIB (the National Fraud Intelligence Bureau). While this may represent a slight statistical improvement on previous years, this is neither good enough nor in any way acceptable – both for the victims of financial fraud, and the honest, decent, hardworking IFA’s out there who have seen the reputation of their profession suffer greatly at the hands of fraudsters and scammers alike.

    The time has come to call out the thieves in their midst!

    Scams, and the lack of an active regulator in place to ensure their non-proliferation, undermine the reputation of the industry itself – and of any decent advisers out there.

    The supposed altruism behind the actions of Quilter, who have seen the story of their plucky attempt at standing up for the little guy circulated by almost every major financial publication available in the UK, and by a fair few online and overseas English-language webpages/articles besides, is questionable at the very best – and a downright attempt at pulling the famous ‘Kansas City Shuffle‘ (when everybody looks right, you go left) at worst. I would like to use this opportunity to call “bull-“, as I believe I have heard my American friends say when faced with a claim that is clearly one of the more than 50 shades of bovine excrement currently available from all major stockers of the substance.

    Quilter has, in the past ten years, facilitated hundreds of millions of pounds’ worth of pension scams with their “fertilizer”-based products.

    Previously operating under the name Old Mutual International, OMI or Old Mutual for short, Quilter has helped the serial scammers behind all kinds of financial skullduggery get away with murder (or should I say fraud, to be more specific) under the – cough – “watchful” gaze of their CEO Paul Feeney, and Peter Kenny (another old friend of this publication).

    It seems that almost every shady offshore firm has been taking advantage of Quilter and other life offices just like them being asleep at the wheel, with hordes of unlicensed investment firms popping up with increasing frequency and success in virtually every expat jurisdiction (especially Spain: e.g. Darren Kirby and Jody Smart at Continental Wealth Management).

    Quilter are (at least partially) to blame. The well-known asset management company’s lack of responsibility when it comes to selling inappropriate products to any suitor who comes a-calling is – at this point – bordering on criminal negligence. (And that’s if you remove the border…)

    Quilter are fully aware that the statistics they’ve obtained (£30,857,329 lost to UK pension scams since 2017) are downright misleading. They fall woefully short of demonstrating even the losses incurred by their own (Quilter’s) facilitation of financial crime in recent years generally – and the last three years particularly.

    ‘Tip of the Iceberg‘ indeed! Even the Titanic was given some sign of the peril hidden in the depths of the Atlantic as it hurtled to its certain and untimely demise!

    Yet when it comes to financial fraud and investment scams (particularly those that involve unsuspecting clients’ pension pots), there is almost no pre-emptive warning given to the public, except for massively underestimated figures produced by the very people who have been clearing the way for the scammers from day one. And by that, I do – of course – mean the life offices (like Quilter/OMI) themselves.

    I would like to take this opportunity to quote Jon Greer, who is the Head of Retirement Policy at Quilter. Mr Greer said: “We are entering a period of considerable economic uncertainty, and one in which generating a decent return on your investments will be extremely challenging. This is the ideal environment for scammers to thrive and it is no surprise to see huge amounts of money still being lost each year at the hands of criminals.

    The fact that it is so hard to investigate and prosecute pension scams is effectively handing pension scammers a get out of jail free card. If you are mugged, it’s highly likely that the police will investigate, but lose your life savings to a pension scammer and your odds don’t look good.

    – Jon Greer, Head of Retirement Policy @ Quilter

    “Pension scams and other investment frauds are extremely complex, they can span multiple jurisdictions, and can often go uncovered for years before the victim realises their money is gone. This all makes investigating the scams incredibly time-consuming and expensive, which is why the police have to prioritise those few cases where they have a chance of success.

    “The government have taken action on unsolicited pension calls with the ban on cold calling, but scammers are sidestepping the legislation and moving online. Movement on the regulation of search engines and social media platforms has been painfully slow and the regulation has failed to keep up with the evolution of scammers.

    “The government has a perfect opportunity to bring the regulation into the 21st century by including financial harms within scope of the forthcoming Online Harms Bill. This will mean that, for the first time, search engines and social media platforms will be bound by a statutory duty of care to tackle harm caused as a result of content or activity on their services.”

    “In doing so, search engines and social media providers will be legally required to remove suspected scammers immediately on notification, and not allow them to operate in the first place, or face sanctions from the new regulator,” he said.

    As you can see Mr. Greer, and by association Quilter, talk a good fight and hit on almost every relevant point a consumer would want to hear from a company of their standing and stature within the financial industry; projecting themselves as a shining light – pouring their beacon out over the surrounding landscape and frightening any existing/would-be scammers out from their hiding places, while at the same time calling on the government for harsher penalties and swifter action to be taken (measures which Quilter themselves, and companies just like them, have blocked on numerous occasions).

    And all this “bright light-shining” has served its purpose: leaving regulators, government and public alike too dazzled to notice the wrongdoing going on behind the source of the so-called light and within Quilter‘s very own doorstep!”

    The narrative that Quilter/Old Mutual/OMI would have you believe is a ridiculous one, one of the main reasons I have written this piece is to challenge that narrative; and hopefully make you (the reader) think about a company that damns financial fraudsters and scammers alike with one hand, while secretly feeding them with the other.

    The grim reality is substantially different from the one that Quilter aim to project for themselves. That being said, it makes my reply to J. Greer’s well put comments even easier:

    “Actions speak louder than words, and all we’re hearing is a deafening silence. If you truly believe the message your company has spent tens, if not hundreds, of thousands of pounds to tell us – by buying article space from any major financial publication that would have you, and getting them to run the story you wanted to put out there.

    It’s time to put your money where your mouth is, quite literally; and begin funding the financial education sorely needed in schools and workplaces throughout the country that will serve to prevent the kind of investment-based crime you claim to stand against!

    “Oh and maybe, just maybe, improve upon your company’s policies so that you do not sell the very products that facilitate thieves who have stolen hundreds of millions of pounds by misselling those same products in just the last few years, whilst simultaneously trying to absolve yourselves of any blame.

    “To put it simply: don’t take your definition of “action” from Action Fraud…”

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  • RL360 and FPI – ’til death (or poverty) do us part

    RL360 and FPI – ’til death (or poverty) do us part

    RL360’s acquisition of Friends Provident International may be set to ruin even more investors internationally. It will certainly increase competition with Quilter (or Skandia, or Ann Summers or whatever OMI are calling themselves this season).

    RL360's toxic acquisition of FPI will be a marriage made in hell, unless David Kneeshaw pays compensation to FPI's victims. Thousands of FPI policy holders have lost their life savings due to being invested in high-risk, unsuitable investments.

    The biggest question – and one which International Adviser’s Kirsten Hastings forgot to ask RL360 David Kneeshaw when she interviewed him on 16.7.2020 – is:

    Why on earth RL360 wanted to buy a company which is being sued for £millions after thousands of FPI victims lost their life savings in a high-risk fund mis-selling scandal?

    During the International Adviser 12-minute video, Kirsten never brought the subject up once. Forgetfulness? Deliberately avoiding the issue? FPI is being sued alongside Quilter – main sponsor of International Adviser.

    Kneeshaw seemed like an amiable fellow in the interview as he proudly announced that “all good things come to those who wait” (a sentiment with which thousands of death bond investors would strongly disagree). Kneesup also proclaimed that he is glad to be able to integrate the businesses and that the marriage has produced a “good, strong, stable company”.

    But the question hung in the air like a fart in an elevator: what about the £100m+ worth of high-risk funds which were “entirely inappropriate for unsophisticated investors” (International Adviser’s words – not mine). And why didn’t Kirsten mention it? And why didn’t Kneesup explain what provision he has made to compensate thousands of FPI’s victims?

    Kneesup confirmed that RL360 paid £259 million for FPI (£209 million in cash and £50 million in deferred cash). So has he kept back another hundred million or so to settle FPI’s liabilities to its victims who have lost their life savings?

    Victims staring financial ruin in the face will want to know why RL360 didn’t just pay – say – £159 million for FPI and keep back £100 million for the victims. Or perhaps the £50 million in “deferred cash” is being put aside for that?

    Or maybe, FPI should have paid RL360 to take the company away and sort out the toxic and destructive mess which has ruined thousands of policy holders.

    Kneesup went on to proclaim that the future of FPI “is secure and can carry on as normal”. Well, I bloody well hope not! “Normal” has been an absolute disaster which has resulted in a catastrophe of epic proportions. FPI was giving terms of business to hordes of unlicensed, unscrupulous, unqualified “advisers” (in reality, just bond salesmen).

    These “Chiringuitos” (as the Spanish regulator refers to them in their warning about financial scams) have destroyed £ millions in their relentless quest for commission.

    The deeply iniquitous practices – so enthusiastically facilitated by life offices – included charging victims fees, plus an 8% commission on the (entirely unnecessary) insurance bonds, plus further commissions on the toxic investments offered by the life offices.

    Another “hot” topic that Kneesup failed to mention was how the RL360/FPI “marriage” intends to compete with Quilter in the “race to the bottom” of offshore financial services. Of course, it won’t exactly be difficult since Peter Kenny – CEO of Quilter/Ann Summers – will deal with any old “advisers”. Kenny certainly isn’t fussy: the sole director of one of his leading “clients” from 2010 to 2017 was a former prostitute and porn star (whose firm destroyed much of the £100m placed in insurance bonds and invested in structured notes).

    However, I really do like to give people the benefit of the doubt. Assuming that Kneesup does have at least a few honourable intentions, here are some friendly suggestions as to how the RL360/FPI marriage could help clean up this toxic “death bond” industry:

    • Don’t deal with advisory firms which don’t have a license
    • Don’t deal with advisory firms which don’t have an investment license
    • Don’t deal with advisory firms whose “advisers” aren’t qualified
    • Don’t deal with advisory firms who have a history of investing their victims’ life savings and pensions in toxic crap (high-risk, professional-investor-only funds and structured notes)
    • Don’t pay commissions – if the insurance bonds are any good, and the clients genuinely need them, the products will sell themselves
    • Don’t tie investors in for fixed terms – give them the flexibility to get out whenever they want or need to
    • Don’t offer investments – the industry has shown it is incapable of performing asset reviews and weeding out toxic rubbish
    • Keep the fees in proportion to the fund value – allow flexibility/drawdown without unnecessary “drag” on the funds
    • Only allow advisers to sell insurance bonds when they are actually needed (which is hardly ever)

    But the biggest friendly suggestion of all to the amiable Mr. Kneesup with the fringe on top is:

    RL360's acquisition of FPI has the potential to increase financial scams Worldwide. Either David Kneeshaw can help clean up this toxic landscape, or become just another scammer like Peter Kenny of Quilter.

    Address the elephant in the room: pay compensation to the thousands of FPI and RL360 victims who have lost their life savings and are facing financial ruin.

    In his euphoria at the completion of the acquisition of FPI, Kneesup must remember that the insurance bond is the World’s biggest cause of offshore financial crime. Insurance bonds have been ruled by the Spanish Supreme Court as being invalid for the purpose of holding investments. Virtually all insurance bonds ever sold in Spain have been done so illegally – it is a criminal offence to sell insurance bonds outside the precise stipulations of the Spanish insurance regulations in Spain.

    I really hope that the elephant in the room will be dealt with. David Kneeshaw has a golden opportunity to help reform the offshore financial services industry. He can emerge from the appalling news of this marriage made in hell as a hero in shining armour – or just another sordid perpetrator of scams and financial crime. He can put Quilter’s Peter Kenny to shame, or become just as bad as him. The World will be watching. Let us hope Kneeshaw chooses wisely – and becomes “Kneesup” rather than “Kneesdown”.

    A number of “advisory” firms are now facing criminal proceedings for fraud, disloyal administration and falsification of commercial documentation – all of which involved the illegal sale of Quilter, RL360 or FPI insurance bonds. Kneeshaw now has a choice: help tackle this widespread crime, or keep on facilitating it.

  • The Sound of Silence (and Deafening Disgrace)

    The Sound of Silence (and Deafening Disgrace)

    This has been a week of scammers trying to silence the din of their sin.

    No matter how hard they try – stealing newspapers, denying the truth on social media or taking me to court – hard evidence simply won’t go away. It is there to stay.

    Costa Blanca Newspaper The Olive Press ran a story last week on Neil Hathaway of Continental Wealth Management. Hathaway – along with colleagues Anthony Downs and Dean Stogsdill – had been one of the three most senior players beneath Darren Kirby and Jody Smart in the £100 million fraud committed against 1,000 victims.

    Masquerading as “financial advisers” from 2010 to 2017, Hathaway, Downs, Stogsdill and Kirby conned hundreds of pension savers into transferring their pensions offshore so that CWM could make £ millions out of concealed commissions on the insurance bonds and structured notes they used to destroy their victims’ life savings.

    Operating illegally in Spain, Darren Kirby and his partner Jody Smart – sole director of the company (Continental Wealth Trust S.L. trading as Continental Wealth Management) – entrusted the dodgy trio with managing the fraudulent operation. Kirby, Smart, Hathaway, Downs and Stogsdill – along with their associates Stephen Ward of Premier Pension Solutions and Paul Clarke of Roebuck Wealth Management – are all now facing charges of fraud in the Denia court.

    CWM scammer Neil Hathaway caught stealing copies of The Oliver Press which exposed him as facing fraud charges.

    Neil Hathaway was caught stealing bundles of copies of The Olive Press in his black SUV. Now being investigated by the local police, he is claiming he committed the crime because he was “angry” at having been outed in a previous Olive Press article – along with Darren Kirby and Jody Smart.

    Hathaway’s defence appears to be that he stole fewer copies of the Olive Press newspaper than the police say he did; that his wife had been “approached at work”; and that he was “protecting his name”.

    And this is the bit that scammers never seem to understand: Neil Hathaway’s name is on thousands of documents which evidence what he did to hundreds of CWM victims. Stealing hundreds of copies of a free newspaper isn’t going to make that evidence go away.

    The hundreds of emails written by Neil Hathaway conning his victims; the OMI, SEB and Generali statements and valuations reporting the huge losses suffered by his victims; the many testimonies of his distressed (and often suicidal) victims will still evidence what he did – no matter how many copies of The Olive Press he steals and destroys.

    Hathaway’s former “boss” Jody Smart (aka Jody Bell, Jody Kirby or Jody Pearson) has also been exposing (and disgracing) herself this week. A collection of “artistic” photographs has been doing the rounds on social media – evidencing Jody’s talents in partnership with a somewhat bouncy buddy.

    Jody Smart (aka Jody Bell and Jody Kirby) showing off her talents and assets.

    I wonder what they were promoting? It could easily have been blond hair dye or red stockings – or anything in between. But it is hoped they would both have been more transparent about what they charged for their services than the “advisers” at CWM were.

    And this, of course, is a perfect illustration of why so many offshore “advisers” behave – and promote themselves – in a manner which is so misleading. They purport to be giving “advice” which will improve expats’ pension arrangements by transferring the funds offshore. But the reality is that even if their pensions should have been left where they were in the UK, their principal motivation was to earn hidden commissions out of selling insurance bonds and high-risk investments.

    However hard anyone tries to remove this image of Jody Smart and her “Big’n Bouncy” associate (and other even more eye-watering images which I cannot publish because they might offend my gentle readers) from the internet, one can never un-see what has been seen. The memory of this photograph can never be extinguished – any more than the evidence of the destruction of so many of her clients’ pensions can ever be rubbed out.

    The scammers at CWM are soon going to be joined by their counter parts at Spectrum IFA Group, Pennick Blackwell/AES International and Holborn Assets. This would already have happened had it not been for Covid 19 and the closure of the courts.

    All these firms, and their so-called “advisers” (in reality just poorly-qualified salesmen) have several things in common:

    • They all recommend pension transfers even if it is in the client’s interests to leave the pension where it is (in the UK)
    • They all lie about the merits and advantages of QROPS
    • They have all decided – before they know the first thing about the client – that he is going to be put into an insurance bond
    • They all seek out investments which pay the highest (hidden) commissions – irrespective of whether these funds are any good (which they usually aren’t)
    • They rarely have any relevant financial services qualifications
    • Their firms are frequently unlicensed for insurance mediation or investment advice
    • They are all committing a criminal offence every time they sell an insurance bond in Spain (and possibly other jurisdictions)

    A few of the scammers are now facing criminal charges in Spain. Several scammers are under investigation by the Insolvency Service and/or the Serious Fraud Office. A couple of “life” offices are facing civil proceedings in the Isle of Man. A QROPS provider is facing civil proceedings in Gibraltar. Another QROPS provider is facing criminal proceedings in Hong Kong. A fund manager is about to face criminal proceedings in the Isle of Man. The tide is beginning to turn against the global trend of financial crime.

    When all’s said and done:

    Stealing newspapers or trying to prevent the publication of the crimes isn’t going to change any of that. The hard evidence of the crimes will remain – no matter how hard the scammers try to hide it.

    It doesn’t look like Old Mutual International (or Skandia or Quilter or whatever they are calling themselves this summer) is going to be able to bottom out their “clean up” operation. Perhaps they ought to try changing their name again so people forget what they did in the past? Perhaps under CEO Peter Kenny’s watchful eye, this might be achieved?

  • How risky are structured products – and fireworks?

    How risky are structured products – and fireworks?

    Normally a great fan of FT Adviser – and their excellent, independent journalists – I was horrified at the recent “Guide to Structured Products” (particularly the section on how risky they are by Craig Rickman).

    Structured notes are as dangerous as fireworks and should only be used by qualified, licensed professionals.

    Noting that this article can be used towards CPD credits, I was astonished that so little attention was paid to the toxic legacy of so many structured notes since 2008. And how Rickman has failed to mention the many thousands of lives which have been ruined – as well as how many people have died or taken their own lives because of being sold these products by unscrupulous con men masquerading as advisers.

    It is not just the rogue advisers who are at fault for flogging structured notes to their unsuspecting victims – it is the life offices such as Old Mutual International who offer them on their platforms of toxic investment rubbish (including such snorters as LM, Axiom, Premier New Earth, Kijani and Quadris Forestry).

    Rickman refers to “lessons learned” and quotes how a high street bank was fined £1.5m in 2012 for flogging so-called capital-guaranteed structured products in the UK. Of course, the reality was (and is) that there is no such thing as a fool-proof capital guarantee. It is all just a question of relative risks. But the scammers just love the phrase “capital guarantee” because it virtually guarantees their victims won’t question the investments in such products. And when the losses start to appear, the advisers will fob the victims off with the well-worn phrase “don’t worry – it’s just a paper loss”. By the time the structured notes mature and the losses are crystalised, the adviser is long gone.

    It is a great shame that Rickman omits any mention of the huge offshore scandal which has been going on since around 2008. This consists of a cartel of rotten-to-the core life offices including OMI (IoM and Ireland), SEB, Generali and various other members of AILO (Association of International Life Offenders). These AILO members have been promoting and facilitating international financial crime for almost a decade and have made vast fortunes out of their evil trade.

    Of course, high-risk structured notes have played a major part in this worldwide crime. These products – particularly those flogged by Commerzbank, Royal Bank of Canada, Nomura, Leonteq and BNP Paribas – were routinely sold through armies of unlicensed, unqualified “chiringuitos financieros” (financial scammers) so that thousands of unsuspecting victims could be relieved of their life savings. The ultimate goal was, naturally, the huge commissions paid to line the scammers’ pockets.

    I once tried to get my head round exactly how structured notes work and I asked a senior manager from one of the providers to give me a couple of hours to get me up to speed. The only thing I knew for sure about structured notes was that they were routinely abused by scammers such as Continental Wealth Management. And that victims would typically lose half their life savings – and sometimes more (much more).

    The structured note expert was doing well with me as his pupil for about five minutes as he gave me a broad introduction. Then, sadly, he switched from English to Japanese, then Serbo Croatian, Icelandic and Māori . By the time he changed to Xhosa, I am afraid I was a lost cause. But I had a nice time checking out my Facebook while he gabbled on. I am no expert by a long way – but I think I know a wee bit more than the average man on the street. And I think my conclusion that structured notes should never be used for retail, unsophisticated investors is correct. In fact, that is what it almost always says on the tin:

    • Not for retail distribution
    • For professional investors only
    • Due to the complex nature of these products, investors should be made aware of the risk of loss of part or all of the capital

    And then there is what isn’t on the tin:

    • Offered by bent life offices such as Old Mutual International who do no due diligence or “asset reviews” on such products
    • Routinely used by scammers because they love the concealed high commissions
    • Have caused hundreds of millions of pounds’ worth of losses in the past ten years

    Old Mutual International – lover of all unlicensed, unqualified scammers across the globe – is now suing Leonteq for £94 million worth of toxic structured notes. The widespread use of these products has resulted in devastating losses – and victims have died as a result.

    Ironically, OMI aboss Peter Kenny is quoted as saying: “I would encourage all industry participants to work together to eradicate poor practices once and for all.” And for once I agree with him – shutting down OMI altogether would be a great start.

    Any investment is only ever as good as the quality of the advice given to the investor. Whether it is a structured note (e.g. Leonteq); a fund (e.g. Woodford Equity Income fund); a bond (e.g. London Capital & Finance); property (e.g. Dolphin Trust); an EIS (e.g. Guy Myles‘ Octopus) or the local bookmaker.

    How risky are structured products – and fireworks? And how good, safe and suitable are they?

    When I say “good” I mean “suitable“. And there’s the rub: what is claimed to be suitable by so many so-called advisers is actually suitable for their own pockets but totally unsuitable for their clients. Of course, another problem is that there are armies of firms which call themselves advisers but don’t have an investment license. They claim that they can give investment advice with an insurance license so long as they con their victims into using an expensive, pointless insurance bond (such as OMI, SEB, Generali, RL360, Friends Provident etc) and then pick from the many toxic investments offered on the bond provider’s platform.

    I like comparing structured notes to fireworks. They both need to be handled with great care and should only be used by those qualified and authorised to deploy them. With fireworks in the UK, every year thousands of people are injured and end up in hospital with scars which will last a lifetime. With structured notes, thousands people are suffering from the loss of their life savings. There have been deaths and suicide attempts – and there will inevitably be more.

    Journalists – especially financial reporters – have a duty to inform and warn the public. It is a great pity that Craig Rickman of FT Adviser has missed such an excellent opportunity to expose this rotten sector of the financial services industry. If this article qualified for CPD credits, then he also missed a golden opportunity to help financial services professionals learn to protect consumers from the dangers of structured products – and the scammers who peddle them.

  • Continental Wealth Management – “Plunder in paradise”

    Continental Wealth Management – “Plunder in paradise”

    Victims of the Continental Wealth Management scam met Mail on Sunday's Laura Shannon in Denia in July 2019
    Victims of the Continental Wealth Management scam met Mail on Sunday’s Laura Shannon

    Mail on Sunday’s Laura Shannon met a group of victims of the Continental Wealth Management scam in Denia in July 2019.

    Here is a link to her excellent article Continental Wealth Management – “Plunder in paradise”: MAIL ON SUNDAY ARTICLE

    All power to her, this young lady put all other would-be investigative journalists to shame. Laura jumped on a plane on 24th July 2019 when she and her editor heard about the Continental Wealth Management scandal. After a long, hot bus journey from Alicante airport, she got straight down to business. She spent all afternoon interviewing a large group of distressed investors. She then attended the memorial service for one victim who had been killed by the stress he suffered when he lost his pension – thanks to Continental Wealth Management’s Darren Kirby.

    Laura Shannon – putting all other “investigative” journalists to shame

    No other British journalist has bothered to do this. No other national newspaper has taken such an interest in this important story – about how British people have been scammed by British advisers in Europe’s leading expat destination.

    Clearly shaken by the extent of the Continental Wealth Management scam, and the plight of the victims, Laura was deeply moved by the memorial service for victim Mark Davison who had died two weeks earlier. After a very long and tiring day, Laura retired to her hotel to write up her notes – ahead of another full day of meeting more victims.

    So where had all the other so-called newspapers been all this time? Where were The Sun, The Times, The Telegraph, The Mirror, The Guardian, The Express? Too lazy – and clearly not concerned with this very British problem. These newspapers do indeed have some very fine journalists – but this widespread financial crime was too low on their priority list.

    The financial press – such as International Adviser – is too conflicted with its promotion of the very company behind this scam: Old Mutual International.

    On the second day of her visit, Laura Shannon met another group of Continental Wealth’s victims and also spoke to a couple in France by Skype. Her final interview with an elderly lady (who had tried to commit suicide when she lost most of her life savings to the Continental Wealth Management scammers) left her in tears.

    At lunch time, Laura headed back to Alicante airport. Four and a half months pregnant, this energetic and passionate young woman returned to her office in Birmingham to write and file her story. She left little out and covered most of the basic points. Her article left the reader in no doubt: financial crime has flourished in Spain for years.

    There are both criminal and civil actions ongoing now – on the Costa Blanca and the Costa del Sol. The days of unqualified “chiringuitos” and unlicensed firms are hopefully over. While Britain’s feeble excuse for a regulator – the FCA run by lazy loser Andrew Bailey – fails to take any meaningful action, the Spanish regulator has at least ruled that failing to comply with Spanish regulations is a criminal offence.

    The Malta regulator has tightened up rules to help stop firms operating similar scams from abusing QROPS, and deploying inappropriate investment policies. Multiple class actions in various jurisdictions are taking legal action against rogue insurance companies – such as Old Mutual International – who have encouraged and profited from widespread financial crime.

    Ward’s luxury development at 64 Calle Haya, Moraira, Alicante

    And this is the problem: crime pays. Stephen Ward of Premier Pension Solutions in Moraira is now adding to his ten mortgage-free luxury villa property portfolio in Florida by building a huge luxury villa next to his former office in Calle Haya in Moraira.

    Paul Clarke – Darren Kirby’s former business partner (when Continental Wealth Management was first set up) has for years been seen zooming around the Costa Blanca in his Aston Martin. And Jody Smart (or Bell or Kirby) – Darren Kirby’s former girlfriend has boasted of the £13 million she earned as director of Continental Wealth Management.

    Sipping champagne while publicising her fashion empire on Youtube

    Jody now runs a swish ocean-front restaurant in Calpe with fiance Franco Pearson – seemingly untroubled by the appalling trail of devastation left behind her in the wake of the Continental Wealth Management tragedy.

    But the millions made by the scammers at Continental Wealth Management pale into insignificance when compared to the fortunes made by life offices Old Mutual International, SEB and Generali.

    Not a hint of regret for OMI’s actions – or shame at his broken promises.

    Peter Kenny did promise to pay compensation to OMI’s victims. But this was just a ruse to get me to take down my blogs about OMI so that the IPO would earn him and his accomplices more £ millions.

    The Spanish regulator has made it clear it is a criminal offence to sell insurance “bonds”.

    No firm with a conscience or any professional ethics should ever use OMI, SEB or Generali. Anyone caught mis-selling such insurance bonds in Spain is committing a criminal offence and can face jail. As most advisory firms in Spain are still doing so vigorously and unashamedly (with the same old lame excuse that such bonds are “tax efficient”), the Spanish jails are likely to get pretty crowded in the not-too-distant future.

    Spain is highly motivated to protect British expats who retire on Spanish soil – and is now learning how deeply dishonest and disloyal British “chiringuitos financieros” (the Spanish regulator’s term for financial scammers) are.

    But how do people avoid getting scammed from now on?

    Part of the problem is knowing what questions to ask – and then being able to understand the answers. Unfortunately, Stephen Ward was the exception to the rule – since he was highly qualified and his firm – Premier Pension Solutions – was authorised to provide investment advice.

    1. Check that the firm is authorised (regulated; licensed). If investment advice is given, make sure the firm has an investment license: don’t be fooled into believing that an insurance license is enough. It isn’t.
    2. Check that the adviser is qualified to give financial advice. He or she must provide evidence of any qualifications claimed. If the relevant institute does not show the qualification, then the adviser is not qualified – no matter what exams may have been passed previously.
    3. Don’t get talked into an insurance bond (aka “life bond” or portfolio bond). They are expensive and unnecessary – and only serve to pay the adviser a fat commission.
    4. Don’t let an adviser invest your funds into expensive, risky assets which are only there to pay fat, undisclosed commissions FROM YOUR MONEY.

    Lastly, make sure you get everything – all costs, fees, charges and commissions – in writing. DON’T GET SCAMMED LIKE THE CONTINENTAL WEALTH MANAGEMENT VICTIMS. They will all give you exactly the same advice.

  • Hidden charges that destroy your pension funds

    Hidden charges that destroy your pension funds

    Pension Life blog - The hidden charges that put your investment in dangerWhen we buy certain products, they have a warning on them.  Cigarette packets, for instance, state that smoking is bad for your health. The wrappers show hideous images of what might happen to you if you use tobacco.

    However, when it comes to investments, the ‘advisers’ selling dangerous investments are able to disguise the risks and costs. Offshore, there seems to be no effective code of conduct, or regulation as to what they must disclose and what they can conceal.

    Last week the FCA slammed asset managers and retail investment firms over hidden fund charges.

    When selling their investments, these firms are really good at omitting details of the full charges that will apply – not only initially – but on an ongoing annual basis as well. These hidden charges put your investment in danger.

    The FCA has stated:

    “In one case it found an asset manager had omitted a 4 per cent a year transaction cost from the UCITS Key Investor Information Document (KIID).”

    In so many pension scams, we hear that the victims were sold a ‘free pension review’; they were not told about the transfer costs; that they were not told about annual fees either.  In many cases, the transfer costs and fees work out to be considerably higher than if they had paid a proper fee for the review in the first place. These hidden costs put a huge strain on the fund and sometimes victims can lose up to 25% of their fund to hidden charges.

    Pension Life blog - The hidden charges that put your investment in dangerWhat worries us most is the lack of regulatory concern or control in respect of expensive and risky investment products. You can’t buy cigarettes without a stern health warning. The same goes for alcohol: bottles and cans clearly state how many units are in the container, and how many units men and women can safely drink per day.  They also state that alcohol should not be consumed by pregnant women.

    Alcohol companies manage to fit all this info about the dangers of drinking on a tiny label. And this poses the essential question as to why financial advisory firms are able to sell risky investments again and again – omitting clear warnings about the dangerous aspects of them.

    Also highlighted in an article by Corporate Adviser:

    “The FCA reserved its fiercest criticism for asset managers, saying it found instances where asset manager fact sheets or websites did not mention costs. When they did, they often gave the ongoing charge figure, which omitted transaction costs, performance fees and borrowing charges which are shown in the Key Information Document (KID). In one example, total charges in the PRIIPs KID equated to around 3 per cent per annum – but the only costs given in the fact sheet was the 1.2 per cent annual management charge (AMC).”

    This is not news to us at Pension Life.  It is something we have been writing about for sometime – and we have a great deal of evidence that hidden, excessive charges are a terrible blight on the face of financial services internationally.  It is indeed excellent news that the FCA has finally highlighted the dangers of such hidden charges, but now we need to make sure these dangers are highlighted to the public. CLEARLY AND VISIBLY.

    A prime example of advisers and hidden charges is the dastardly duo: Phillip Nunn and Patrick McCreesh.  This pair of scammers received £ millions promoting the Capita Oak, Thurlstone Loans, Henley Retirement Benefits Scheme and Berkeley Burke SIPPS scams – leaving 1,200 victims facing poverty in retirement.  With that disaster comfortably behind them, they then launched the £40 million Blackmore Global scam and now their network of scammers are promoting the Blackmore Bond which pays a 20% introduction commission to the introducers.

    Pension Life blog - The hidden charges that put your investment in dangerYou can’t buy a gun without going to a registered shop and having a licence.  (Although, I guess on the black market you can). If you buy a gun on the black market, it is going to be ‘hot’. The person you buy it from is going to be dodgy and it certainly won’t come with the correct paperwork.

    So if you are a normal, law-abiding citizen (and cautious investor), you would want a legitimate investment which fits your risk profile – and full paperwork disclosing ALL the charges. Make sure you pick the right adviser who will give you evidence of all these essential details.

    Dodgy advisers are still getting away with selling ‘hot’ investments: funds that are clearly toxic and dangerous to your pension fund.  These advisers manage to do this very successfully by wrapping them in a fluffy cover and selling them with an array of unrealistic promises of high returns and alleged capital protection to reel the victims in.

    When considering a pension transfer, we urge you to familiarise yourself with our ten standards.  Your adviser ought to adhere to these standards anyway – and if he doesn’t then walk away. Number eight covers what we have talked about in this blog: CHARGES.

    Your adviser MUST GIVE YOU: Full disclosure of fees, charges and commissions on all products and services in writing, before you commit. So before you sign anything regarding a pension transfer and subsequent investment, please ensure you know exactly what charges will be applied to your fund: before, during AND after.  It is also imperative to know if there is a lock-in period and early exit penalty and to make sure you are comfortable with that.

    Excessive and concealed fees can ruin a once healthy and happy pension fund – just like smoking can ruin your lungs and drinking can ruin your liver.  Hidden charges can put your funds in danger and ruin your retirement savings beyond repair.

    Here is a list of our ten standards.

    STANDARDS ACCREDITATION CHECKLIST FOR FINANCIAL ADVISERS:

    1. Proof of regulation for all services provided by the firm and individual advisers in the jurisdiction(s) where advice is given and the clients are based.
    2. Verifiable evidence of appropriate, registered qualifications and CPD for all advisers. (Where there are insufficient qualifications, there must be clear evidence of plans and preparation to achieve required goals within a reasonable, stated time frame).
    3. Professional Indemnity Insurance
    4. Details of how fact finds are carried out, how clients’ risk profiles are determined and adhered to.
    5. Details of the firm’s compliance procedures – assuring clients of the highest possible standards and assurance that risk profiles are always accurately and faithfully respected.
    6. Clear and consistent explanation and justification of the use of insurance bonds for investments.
    7. Unambiguous policy on structured notes, UCIS funds, in-house funds, non-standard assets and any ongoing commission-paying investments. Report of all investment recommendations for all clients and evidence as to how these match individual risk profiles.
    8. Disclosure of fees, charges and commissions on all products and services at time of sale, in writing, before clients commit.
    9. Account of how clients are updated on fund/portfolio performance.
    10. Public evidence of complaints made, rejected or upheld and redress paid.

    For more in depth explanation check out our other blog on the ten standards:

    Cartoon blog – Don’t be the next pension scam victim

     

  • Premier New Earth Recycling (NERR) Investment Scam

    Premier New Earth Recycling (NERR) Investment Scam

    Premier New Earth Recycling and Renewables PLC (in liquidation) is being wound up by Deloittes.  Joint liquidators Alexander Cameron Adam and David Peter Craine have written to shareholders to say the directors of NERR aren’t being terribly helpful.  Apparently, they are refusing to cooperate with the investigation into why the company failed and are insisting they will only answer questions put to them in writing.  Disappointing, perhaps, but not really surprising – scammers rarely “cooperate”.

    NERR was a typical investment scam from the outset.  The fund was highly speculative, with underlying assets mostly made up of smoke and mirrors, and a bit more smoke (plus quite a bit of rubbish).  But to be fair, the published accounts did draw attention to the inherent high risks of the venture failing.

    The fund’s assets were equity and unsecured loans in three UK companies:

     

    1. New Earth Solutions Group Limited (“NESGL”)
    2. New Earth Solutions Facilities Management Limited (“NESFM”)
    3. New Earth Energy Facilities Management Limited (“NEEFM”)

    When the liquidators got called in, they valued the investments at “close to nil”.  In fact, the only value was probably the paper that the depressing accounts were printed on.  Deloittes will, apparently, be trying to uncover why NERR was NEVER going to do anything other than collapse.  So that will require a bit of sleuthing to find out who and what was responsible.  The liquidators have applied to the court to have the directors questioned under oath.  But the directors – who have undoubtedly made a packet out of this scam – will be able to afford top-class lawyers who will help them muddy the waters.

    Deloittes have made the usual “we are limited in what information we can share so that we do not prejudice any potential claims” disclaimer to the distressed shareholders.  But I find it worrying that Deloittes is being used at all for this job.  Deloittes was used to inspect the books and records of STM Fidecs in Gibraltar – and they must surely have uncovered the massive fraud involved in the Trafalgar Multi-Asset Fund (under investigation by the Serious Fraud Office).  But no action was ever taken against STM Fidecs.  So I am not optimistic that Deloittes will do anything other than push a bit of paper around a desk and submit eye-watering fee invoices.

    The Isle of Man Financial Services Authority is paying Deloittes’ fees for the liquidation.  For now.  However, if the IoM regulator had done its job properly in the first place, they could – and should – have prevented this scam and avoided so many thousands of investors losing their shirts.

    Read the published accounts for the NERR Group of companies – and I think you’ll agree this was obviously a dodgy investment right from the start.  These accounts were prepared by BDO Stoy Hayward – and you’d have thought they would have known better than to fail to blow the whistle on this collection of companies which was, quite frankly, always bound to fail (at best) and an outright scam (at worst).  The writing was always on the public domain wall.

    2008 Turnover £3.5m  Cost of Sales £3.8m  Admin Costs £1.8m

    2010 Turnover £6.4m Cost of Sales £8.7m  Admin Costs £5m

    2012 Turnover £24.8m Cost of Sales £25m  Admin Costs £5.8m

    2014 Turnover £31.9m Cost of Sales £39m Admin Costs £1.7m

    However noble, environmentally friendly and ethical the concept of turning rubbish into clean energy may sound in theory, this commercial venture was never commercially viable.  In fact, looking at the ever-increasing gross losses from 2008 to 2014: from £0.3m in 2008 to £7m in 2014 – and a total spent on “admin costs” of £14.3m – any half-decent accountant or auditor would have blown the whistle long before 2016.

    Pumping more and more investment into this hopeless venture was only ever going to prolong the inevitable.  An unprofitable venture is an unprofitable venture – no more and no less.  The directors will, naturally, have got fat and rich, but the investors will have lost large chunks of their life savings.

    The name “Premier” will, of course, strike a chord with victims of Stephen Ward’s Premier Pension Solutions.  Since at least 2010, thousands of victims have lost their pensions to Ward.  However, in this case there seems to be no link between the Premier Group investment scam, and Ward’s Premier Pension scam.  However, one of Premier Group’s other scams – in addition to the recycling scam – was the Eco Resources Fund which invested in bamboo plantations in Nicaragua.  Which sounds awfully similar to the Reforestation Group fund that Ward was peddling in the London Quantum pension scam.  This fund was purportedly based on Brazilian eucalyptus trees and land used for plantations.  Only it seems there were no eucalyptus trees.  And no land.

    In total, around 3,250  investors lost almost £300m in the Premier Group investment scam.  A great shame it took the Isle of Man regulator eight years to figure out what was going on under its own nose.  But then the regulator has a long track record of ignoring financial crime and those who facilitate it – and ignoring it is the same thing as encouraging it.  Personally, I would put the IoM regulator in the same category as the Gibraltar regulator: inept and bent – taking no action against scammers or those who facilitate scams.

    And, of course, Old Mutual International had a big hand in helping to facilitate the Premier Group scam as this fund was offered on the OMI platform.  Had Old Mutual International done even the most basic bit of due diligence, they would have seen it was an obvious scam and more than likely to result in investors losing their money.

    The Premier Shareholder’s Group, a campaign group for investors, said Premier Group had paid large commissions to “unqualified and unlicensed” introducers to target pensioners by promoting their funds to low-risk investors.  This campaigning group also claims investors were locked in with “punitive” exit fees, often as high as 30%, which they were not told about when they signed up.

    Former director of Premier Group – John Bourbon – has apparently denied accusations of mis-selling and mis-representation and is quoted as saying: “It is highly unlikely that anybody could have a significant investment in Premier Group without understanding the risk”.  He has also insisted all fees and charges were clearly set out in the offer document that investors were required to sign to confirm their status as “experienced investor”.  Bourbon has also moaned that the regulatory action was “something of a witch hunt”.

    So, in summary, you’ve got all the same old same old symptoms of yet another scam:

    • Hopeless, commercially-unviable venture which hasn’t a hope of ever succeeding
    • Hopeless regulator
    • Hopeless auditor
    • Bent introducers and unregulated advisers flogging the high-risk investment to low-risk clients
    • Huge commissions and punitive exit penalties
    • Victims conned into signing up as “experienced investors”

    Until and unless regulators and crime enforcement agencies make an example out of the scammers who operate such investment scams, nothing is going to change.  And until and unless life offices such as Old Mutual International are sanctioned for offering such scams, unscrupulous and commission hungry “advisers” are going to keep on peddling such toxic wares to unsuspecting victims.

    The one thing that could stop these kinds of scams from getting off the ground would be to ban commissions offshore and mirror the principles of British RDR.  Financial advice can never be truly independent if commissions are payable – whether for useless, expensive insurance bonds, or toxic, expensive investment funds such as Premier New Earth Recycling and Renewables (NERR).

    USEFUL CONTACT DETAILS:

    nerrenquiries@deloitte.co.uk.
    http://www.deloitte-insolvencies.co.uk/kr/new-earth-recycling-and-renewables-(infrastructure)-plc.aspx
    Alex Adam: acadam@deloitte.co.uk
    David Craine: dcraine@burleigh.co.im

  • International Adviser – Have I Got News For You!

    International Adviser – Have I Got News For You!

    International Adviser really can’t make up its mind whether it is organising a piss-up in a brewery, a news roundup carefully slewed in favour sponsors Old Mutual International, or a marketing machine.  I read with interest the recent  IA Industry Most Influential Top 100 described by IA thus: “we at International Adviser decided to shine a light on the movers and shakers that have helped this industry get to where it is today”.

    But where exactly is the industry today?  And have the so-called top 100 moved and shaken the industry in a helpful way or a detrimental way?  To find out, why don’t we have a look at a few of the “influencers”.  To get the measure of them, let’s put them into a game of “Have I Got News For You”:

    Bob Pain in the chair as quiz master.  A bloke who ran Cayman Islands-based Investors Trust until recently appointed chair of the Association of International Life Offices, the trade body for international life offices. During his 35 years of experience in financial services, he facilitated the scam run by Phillip Nunn of Blackmore Global and David Vilka of Square Mile International Financial Services.  Investors Trust accepted over 1,000 investments into illegal UCIS funds for UK-based victims scammed into QROPS with Integrated Capabilities and Harbour (now STM).

     

    As Captain of the Navel Team, let’s have dashing Tim Searle – Chairman of Dubai-based Globaleye.  With his eight-year Naval history, he should make an ideal leader and would come in particularly useful in the event of icebergs, torpedos or sharks.

     

     

    Captain of the Army Team I nominate as Sam Instone of AES International.  His experience as an Army officer should give him the leadership skills to oppose the Navel Team.  Sam’s track record as the “enemy of traditional financial services” should give him the basis for a sound battle plan.

     

     

     

    On the Army  Team, we’ll have international wealth and regulatory specialist, Phil Billingham.  Phil must be utterly disgusted with the likes of Stephen Ward (another fully-qualified adviser) messing up the reputation of the profession by running a long series of pension scams and ruining thousands of lives.

     

     

    And the final member of the Army team will be Paul Stanfield, CEO of FEIFA (Federation of European Independent Financial Advisers).  Another real gentleman – and handsome to boot – and one who understands the importance of outlawing scammers.  Several years ago he excommunicated Stephen Ward of Premier Pension Solutions from FEIFA to loud cheers from victims and industry professionals alike.  (My only gripe with him would be that he still hasn’t kicked out Square Mile Financial Services run by scammers John Ferguson and David Vilka).

     

    On the Navel Team we’ll have Geraint Davies of Montfort International – an expert IFA specialising in international financial services, and Roger Berry of Concept Group Trustees in Guernsey.  These two chaps also have, between them, extensive experience of Stephen Ward in their own ways and will, no doubt, have much to talk about.

    The contest will be to spot the “odd one out”: Michael Doherty of Woodbrook Group, Conor McCarthy of SEB, Peter Kenny of OMI and Winnie-the-Pooh.

    Tim Searle: “They’re all Irish, except Winnie-the-Pooh who’s English?”

    Geraint Davies: “They all hate Angie except Winnie-the-Pooh who’s never heard of her?”

    Roger Berry: “They all love Angie except Winnie-the-Pooh who’s never heard of her?”

    Sam Instone: “They’ve all got names that end in Y except Winnie-the-Pooh?”

    Phil Billingham: “They’re all involved in money except Winnie-the-Pooh who’s involved in honey?”

    Paul Stanfield: “None of them have applied to be members of FEIFA except Winnie-the-Pooh?”

    Bob Pain: “No, you’re all wrong.  The answer is Peter Kenny of OMI.  The other three have been doing “nothing”: Michael Doherty was employing ex CWM scammers Dean Stogsdill and Neil Hathaway (known as Dog Kill and Hadaway) but claimed he was paying them nothing; Conor McCarthy of SEB has been asked numerous times for his comments on why SEB allowed the scammers at CWM to invest most of their victims’ funds in toxic structured notes, but McCarthy is saying nothing and won’t reply; and Winnie-the-Pool is doing nothing all the time.

    The odd one out is Peter Kenny who is doing “something” and is suing Leonteq for the £94 million worth of fraudulent structured notes they sold to OMI.