“Baseless and without merit” was how one insurer described mis-selling claims involving unregulated collective investment schemes (UCIS) while another “denies all allegations of wrong-doing or liability.”
A City A.M. report said Quilter – formerly known as Old Mutual Wealth – and Friends Provident International are being accused of involvement in the sale of high-risk UCIS through Isle of Man-based subsidiaries. The schemes’ losses have reportedly reached £200 million (around NZ$389.4 million).
A potentially 300-strong class action lawsuit is said to be in the works, with the report citing a spokesperson for the investors as saying that they plan to lodge a High Court case within the next couple of months. The claim could be worth as much as £80 million (around NZ$155.7 million), according to the report.
Meanwhile, both Quilter and Friends Provident International have slammed the accusations.
“Friends Provident International denies all allegations of wrong-doing or liability,” City A.M. quoted a company representative as saying. “FPIL does not have a UK presence and it is not authorised to give investment advice.
“Instead FPIL products are selected by an applicant and it is for an applicant’s investment adviser to determine which products are suitable.”
The rebranded Old Mutual Wealth, for its part, said they “are aware of the allegations and have responded to those in detail.”
A Quilter spokesperson was cited as stating: “The allegations are baseless and without merit. Old Mutual International Isle of Man is an IoM regulated insurance company employing approximately 500 people.”
