More trouble for Towry Law
(1/9/2004)
After already having had to pay out a reported $30 million to disgruntled investors, IFA Towry Law International (TLI) may now have to find another $250 million to settle a class-action compensation claim resulting from mis-selling of investment funds.
The Bloomberg news wire has reported that UK firm Class Law Solicitors says it has been instructed by a group of TLI victims based in Cyprus and led by Denis O`Hare, to consider claims on behalf of investors in several funds sold by TLI outside the UK, on the basis that they were not advised of the risks involved in these investments and (in certain cases) of the nature of the associated loans. Class Law has held meetings in Hong Kong, Dubai and Bahrain to seek further parties to join a class action against the firm.
Hong Kong regulators - among others - have focused on mis-selling claims against Towry Law in recent months due to the collapse of two Hong Kong-based funds sold to mainly UK ex-pats throughout the region. The firm `did not exercise due dilligence` in recommending what turned out to be riskier investments than clients were led to believe.
Towry Law International`s parent company, the London-based HHG Ltd has said that it has put aside provision for further compensation claims, but declined to say how much.
Towry Law`s managing director, John Simonds, has denied that the amount put aside is `anywhere near` $250 million.
Towry Law International closed to new business with effect from 9 July 2004. Its UK division however continues to operate within HHG plc.Law in recent months due to the collapse of two Hong Kong-based funds sold to mainly UK ex-pats throughout the region. The firm `did not exercise due diligence` in recommending what turned out to be riskier investments than clients were led to believe.
Should you hold an investment, savings or life assurance policy arranged by Towry Law and you require further information on how to administer the policy following the above events, please feel free to contact us via our online Information Request Form.
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