News Round Up

Investors in failed finance companies should look first to sue the directors of fraudulent finance companies when seeking damages, not the financial advisers who relied on supposedly credible prospectuses to base their recommendations, according to one legal expert.

Hundreds of investors are seeking legal reparation for financial losses incurred as a result of investments based on advice given by financial advisers. However Brian Henry, barrister and Chairman of funds management firm Goldman Henry Capital Management says investors would more likely receive compensation if they targeted Directors instead of the financial advisers who are not currently covered by their insurers. Directors have their own indemnity insurance which is better placed to compensate investors if courts determine that the directors have been negligent.

Henry says the trend in legal circles to sue investment advisers is of significant concern and is likely to yield little satisfaction for investors. One of the issues driving this dissatisfaction is the extent of insurance coverage financial advisers have with their indemnifiers. [Read more here]

Would you like capital protection with that fund?
Liontamer has launched its newest fund which comes in two forms: with or without capital protection.