Trafalgar Multi Asset Fund – DISASTER.
“Gibraltar is a highly regulated and transparent jurisdiction, coupled with the benefits of a Gibraltar-based regulatory regime.” Well, we will see won’t we!!
STM is now writing to their distressed members who are invested in the suspended £20 million Trafalgar Multi-Asset fund. STM are stating:
“All members who invested into the Trafalgar Multi Asset Fund were introduced by Global Partners Limited, Nationwide Benefit Consultants Limited, and/or The Pension Reporter. NBCL provided advice based on their appointed representative status granted by the Portuguese regulated firm – Joseph Oliver LDA. In April 2016 Joseph Oliver LDA revoked the permissions granted to NBCL. This resulted in the directors and employees of NBCL, no longer having permission to give financial advice.”
But – come on guys – there is no evidence that Global Partners or NBC or The Pension Reporter were ever regulated for pension or investment advice. Only insurance advice. So the fact that Joseph Oliver LDA dumped them is irrelevant. So why did STM accept any of these people at all?
All of these people were undoubtedly low-risk, low-net-worth, unsophisticated investors – but they were all put into a high-risk, illiquid Unregulated Collective Investment Scheme (which is illegal to be promoted to UK retail clients). So, where was STM’s due diligence?
And what did STM know about the Trafalgar Multi Asset Fund? They obviously knew the investment manager was also the adviser (a clear conflict of interest). STM claims to be “a leading provider of international pensions with over 40 years’ experience providing bespoke planning for high-net-worth individuals in managing personal pension schemes.” So why accept members who are neither international nor high net worth?
STM goes on to claim they are “at the forefront of developing best practice in the administration and delivery of a QROPS. Our business model and processes are built around our clients to ensure we deliver only the highest standards of client care.” So STM has accepted hundreds of members who are UK resident and low risk into a QROPS 100% invested in one single UCIS and whose adviser is also the investment manager of the fund? I would hardly call this the “highest standards of client care” but rather the lowest standards of negligence.
So what are you ridiculously hopeless lot going to do about it? Call yourself pension trustees? I wouldn’t trust you with my used tea bags!