Latest Information
aaa Reply to Linns Lawyer
aa SUNDAY MAIL TONY HETHERINGTON
Aberdeen Global
ALEXANDER ROTHKO
Allied International
Andrew Linn's Fraudulent Companies
Andrew Linn Charterhouse 12 per annum
ANDREW LINN EXPOSED BY UK PRESS
Andrew Linn in Criminal Court
ARROW INTERNATIONAL MANAGEMENT SERVICES LIMITED
Arte y Naturaleza
A ANDREW LINN BANNED
A PUBLIC WARNINGS
A WARNING
Banco de España
Banx
Barclays Bank
Baring Ireland
Blacktower Financial Management Int Ltd
Blevins Franks
Brewin and Dolphin
Brite prey on Brits HAMILTONS
BRITISH EMBASSY
Brooks Macdonald Asset Management
Bulgarian Embassy
Case Histories
CASHMAN CONTINUES FIGHT FOR JUSTICE
Castle in the Sun
Caution
Charterhouse 12 percent plus
Churchills Investments
Close International
CNMV
CNMV Complaint
Corruption Real Estate
Costa Del SCAM
Court Action
CTCU Property Fund Ltd. in compulsory liquidation
CURRENT REGULATIONS
David Vance
Debt Collection Agency
Donald Nott
Equity Release in Spain
Equity Warnings
Estepona Golf
False Adverts
Fidecs
Financial Management Direct
First Class Investments
Forsyth
FSA Advice Equity Release
FSA UK
Fund Insurance Management Corporation
Gibraltar
Gibraltar FSC
Gibraltar FSC - 2
Governor of Gibraltar
Guardian Trust Company
Guernsey FSC
Hamiltons Financial Services SL
Hansards MISS SELLING
Henry Woods
Henry Woods Failed Investments
INLAND REVENUE WARNING
Invesco
Investment Program Management Inc
Ireland FS
Isle of Man FS
Jersey FS
John Doust
John Findlater OBE
Kevin Neal International
Kevin White
Knights Insurance
KSi Costa Consulting Group
Labrow Gibraltar
Landesbanki
Landesbanki in Crisis!
Land Grab
Langtons Guide
LATEST INFORMATION
Law Could Save Homes
Leonard Berney - John Findlater OBE
Leonard Berney
Letters to the Action Group
Luxembourg FS
Mail on Sunday
Misleading Adverts
Money Penny Financial Management SL
Mutual Benefits (Viatical)
MUTUAL BENEFITS LASTES
Names of Unlicenced Advisers
Names of Unlicenced Advisors
Need an Advisor
NORMAN EDWIN STEELE
Offshore Money Managers
Offshore Protection
Offshore World SL
OFTA
Orange Finance
Paul Prew Smith
Pension and Investment Shop
Perils of Equity Release Schemes
Premier Life Henry Woods
Premier Low Risk Fund
Press Articles
Property RIP OFF
Protection
PUBLIC DEMONSTRATION
Remington Growth Fund Andrew Linn
Retiring in Spain
RIP OFF COMMISSIONS
Rock Financial Services
Rothschilds
Savignon Financial Services
Scandals
Scottish Widows
Sensible Options
Sheperds and MBC
Sheperds and MBC latest
Spanish Financial Services
Spanish Regulations
Spanish Stamp Fraud
Stamp Scam
Unlicenced Companies
Unlicenced Financial Advisors
Westhill Investments
Who Are We
Your Future Financial Services SL
Andrew Linn Remington Growth Fund

Case Histories

HELMUT waiglein

Avda de las naciones unidas

CHRISTAMAR 43B –D-180

29660 PUERTO BANUS

MARBELLA

Tel 952765598

 

 

25 November 02

 

CNMV

Comision Nacional del Mercardo de Valores

Paseo de la Castellana,19

28046 Madrid

 

 

COMPLAINT

                       

 

Helmut Waiglein  Non Resident

 

Investments Agent

Henry Woods Investment Management

Calle Azorin 4, 29600 Marbella.  Spain.

Playa Arenal 403730 Javea. Spain

 

BACKGROUND

 

I met Donald Nott at a friend’s house in 1998. We became distant friends and often met playing golf. I have visited his home and he too has visited my home socially.

 

I decided to make some investments in the stocvk market in 1999 and as a result I visited the offices of Henry Woods.

 

 

THE MEETING

 

I clearly informed Donald Nott of our affairs and emphasized we needed a monthly income to be drawn once a year. With no risk to our capital.

Donald Nott wrote to us on the 25th of November confirming in writing that I wished to preserve our capital and obtain a realistic growth. He further wtrote stating that I would get an annual income of 10%. I have this all in writing.

 

Donald Nott produced many portfolios; with the names blanked out. We were impressed.

 

 

PAYMENT

Money was paid from Deutsche Bank direct to the companies DN had the papers prepared which we signed : -

 

 

 

THE PORTFOLIO

Japan

Invesco GT Japan Enterprises Fund A        9,000  

 

Global

Forsyth Golbal Emerging Markets                  25,000      

Forsyth Thermatic Fund                                 40,000

 

Asia Pacific

Invesco GT                                15,000

Baring Australia                           8,000

 

Europe

Invesco GT Pan     20,000

Invesco Pan           10,000

Invescvo Gt Eur        8000

Baring East E            7000

Baring German        10,000

 

North America

Baring N America 10,000

 

BONDS Baring High Yield   18,000

 

Invested  360,000€ 

PLUS 250.000€ in March 2000 for an absolut safe investment with no loss to capital ( NO RISK)  for a 5 year term. This was put into Scottish Mutal with profits bonds.

 

TOTAL INVESTMENT 610,000€

 

 

CONTRACTS NOT IN SPANISH

All paperwork and articles, which we signed, were in English.

 

EVENTS

 

When the stockmarket started to fall I asked Donald Nott to sell, he advised against this.

 

 

I have suffered as a direct result of receiving bad advice and products being mis sold from an unregulated broker acting illegally in Spain, on behalf of offshore companies who are not authorized to sell their products directly or indirectly to residents in Spain unless they are registered with the only authority in Spain the CNMV.

 

 

I am now well aware that the CNMV does not regulate Donald Nott or Henry Woods Investment management. i am also aware that  he had to surrender his financial licence in Gibraltar in 1993.

 

I believe Donald Nott has taken advantage of us by way of getting higher commissions. Donald Nott has not shown any care, and professionalism, this surely amounts to criminal negligence. Residents in Spain must look to the CNMV for protection that one expects in any EU Member Country.

 

I look forward to the result of your enquiry,

 

Yours truly

 

 

 

 -------------------------------------------------------------------------------------------------------------------------------------

DAVID Klein

Casa Susana

Calle 7a Guadalmina Baja

29678 Marbella

Spain

Tel: 0034952883388/ 0034610868748 / Fax 0034952885643

                                                                                                        Email david@thedogman.net

 

                                            30.5.01

 

CNMV

Comision Nacional del Mercardo de Valores

Paseo de la Castellana,19

28046 Madrid

 

 

COMPLAINT

 

 

We are: -

David J Klein, Susan Klein          Residents in Spain NIE X 1178639 G

Address: -

Casa Susana Calle 7a, Guadalmina Baja, San Pedro 29678 Marbella Spain

 

Investments Agent

Henry Woods Investment Management

Calle Azorin 4, 29600 Marbella.  Spain.

Playa Arenal 403730 Javea. Spain

 

BACKGROUND

 

 

The Costa Del Sol has around 100,000 ex pats from the UK and the remainder of 50,000 made up from Germany, Scandinavia and Denmark. Each of these communities has their own radio stations and newspapers in their language.

 

Due to the high profile of Henry Woods taking prime time on Onda Cero Radio International 101.6 fm which is the main English Radio Station and full-page advertisements in Sur in English and The Entertainer the main English newspapers, my wife and I decided to make an appointment with Donald Nott (DN) the owner of Henry Woods Investment Management (HWIM). Prior to the meeting he wanted to know how much we had to invest and where our money was. He took details over the telephone of our Bank; he needed this to have the various papers ready for signing.

 

 

THE MEETING

 

On the 8th of February 2000 we went to the offices at Calle Azorin 4, 29600 Marbella at approx 6.p.m.  Our first impression was that we were in very elaborate offices; we were very impressed with what we saw. We were then taken into the office of Mr. Donald Nott and explained we were looking to invest, and knew very little about investments. We emphasized that we were of an age and stage in our life where we needed income and no risk investment. My wife is 61 and I am 64 years of age.

 

We clearly informed Donald Nott of our affairs and emphasized we needed a quarterly income. Donald Nott assured us we would be able to draw up to 7.5%. We informed Nott that he should bear in mind we would only be able to rely on my old age pension (I am 64 pension not due until 2002) and have no company or private pensions.

 

The meeting lasted about one hour, DN explained what he was going to do with our funds, and we told him many times we did not understand the markets and trusted him to manage the portfolio. He also explained to us loud and clear that he does not usually take on clients with such a small amount as 157K (40 Million Pesetas) and that his clients normally invest 500K (200 Million Pesetas) upwards. Because of this my wife and I were delighted that he would be our financial manager. When I asked if we could have a statement of our funds weekly we were informed in no uncertain terms that he would not do this since it was not good to look at figures weekly. He said he would do this every month; he did, but only after constant telephone calls from us.

 

DN produced many portfolios, with the names blanked out showing profits over 40%. Obviously we were most impressed. We are now aware he uses this tactic and also informs clients that he is doing them a favour taking funds for investment, which are below 500K (200 M Psts). Donald Nott assured us several times that he worked under the PIA rules in the UK. He put this in writing on 8th of February 2000.

 

We explained in detail this was all the money we had in the world.  At the time we were changing our investments we wanted to hold on to 15K (3.75 Million Pesetas), which we wanted to live off during the year 2000. DN insisted we pass these funds to him; he informed us this would make more money invested with him and we could draw this at anytime. Within a few weeks we had to draw off funds in April we requested 3000p/St (750,000 pesetas) from HWIM who arranged this. The money was drawn from Barings, which was now loosing money.

 

 

PAYMENT

Money was paid from Unibank direct to the companies DN had the papers prepared which we signed as follows: -

 

From Unibank

 48,000 to Invesco, 15,000 to Baring, 94,000 to Forsyth

 

Cash deposit with Unibank transferred by HWIS.

 

THE PORTFOLIO

Europe

Forsyth Greater Europe Fund         4,000 pounds sterling

Invesco GT Pan European Fund     8,000

Invesco European Enterprises        8,000

Baring Eastern Europe              5,000

Baring German Growth           10,000 (Sold to raise money to live on)

 

Japan

Forsyth Japan Fund                                   10,000 p/s

Invesco GT Japan Enterprises Fund A        7,000

 

Global

Forsyth Golbal Emerging Markets                  45,000       p/s

Forsyth Thermatic Fund                                 25,000

Invesco GT Technology Fund                        15,000

Invesco GT Leisure Fund                               10,000

 

 

 

 

CONTRACTS NOT IN SPANISH

All paperwork and articles, which we signed, were in English. We now understand from lawyers that it is an offence for any Spanish Companies to draw up or make contracts in any other language other than Spanish. If one wants the contract translated into French, German, Dutch, and English that is ok. However according to Spanish Law all must be in Spanish.

 

EVENTS

Despite repeated requests to subsequently sell these investments within 2 weeks of purchase Donald Nott refused my instructions. He advised that he was the Financial Advisor and this was he job to control the portfolio. We asked him to change the investments, stating that we could not afford to loose our money. He ignored our please and was most uncaring. I draw to your attention the correspondence, which has been sent to you.

 

We were led to believe we could not draw funds without Mr. Nott’s approval because he would be switching them from one fund to another. Our money 157K was in sterling he informed us to change to Dollars and Euros we were not happy but were informed that we were in Spain and the Euro was needed here. Donald Nott emphasized very strongly that we must not sell and that the funds would come back and show massive profits. We had to take his advice.

 

My wife and I were most anxious a few weeks later we were18K p/sterling down, a few weeks later 20K then just building up losses. My wife and I became suspicious of his lack of professionalism by his avoidance when we telephoned him. When we were able to speak on the telephone he was rude, abrupt and arrogant, this is confirmed in his correspondence, which I have sent to you.

 

I observed full-page advertisements in the local press and especially on radio was most misleading and challenged him on this; again he was rude and abrupt. This resulted in me making contact with the CNMV on the 15th of June 2000. The CNMV replied to me on the 21st of June stating that Henry Woods are not authorized by them or any other body to conduct investment business in Spain.

 

When I informed Henry Woods they were illegal, Donald Nott, said it was not correct and that there had been a misunderstanding.  At this stage he said, Don't shoot myself in the foot, he claimed that the Spanish Authorities could seize my funds. As a result of this conversation and his further promises and asking us to trust him, I did not correspond further with the CNMV.

 

WEBSITE

I refer you to the website of Henry Woods http://www.henrywoods.com/ in this you will observe he is acting for many leading houses. I have in my possession many misleading advertisements by Henry Woods which unfortunately he gets away with due to the fact that the Consumer Office do not monitor English newspapers in Spain.

 

ADVERTISEMENTS

I have full newspaper cuttings dated 30th November 2000 in which HWIS claim;

 

Greater Europe plus         32%            Mine were   16.4% down

Global Balanced plus       49.6%                ‘’            28.7%

Global Thematic plus     100.1%                 ‘‘          17.6%

 

I wrote to HWIS on the 16th January informing him that his advertisements were misleading the public.

 

All documents I have received from Baring, Invesco and Forsyth clearly state Henry Woods Investment Management as ‘Agents’. I have one document from Forsyth stating… Broker Dealer Details Commissions 2.5%. (Copy Available)

 

I have suffered as a direct result of receiving bad advice and products being mis sold from an unregulated broker acting illegally in Spain, on behalf of offshore companies who are not authorized to sell their products directly or indirectly to residents in Spain unless they are registered with the only authority in Spain the CNMV.

 

I have made contact with all the above companies to inform them with fax copies from CNMV they are not allowed to sell products in Spain to Residents unless registered and that Henry Woods / Donald Nott are illegal. They do no appear to be concerned that their agent is not regulated and that they and their agent is acting illegal according to Spanish Law.

 

I have written as follows: -

 

You are aware that Henry Woods are illegal and unregulated and not authorized to act as intermediaries / agents, to conduct or present themselves for investment business in Spain.

You state you only deal with intermediaries recognized in the marketplace. Donald Nott / Henry Woods is not recognized by the authorities in the Spanish marketplace. You have this in writing from the authorities.

I would suggest you now check with your regulators to enquire if you are allowed by your code of conduct to engage in further business with the company Henry Woods whom you now know to be illegal.

 

 

Are you aware that all the above companies come to Spain and arrange with Henry Woods Seminar Luncheons in 5 star hotels? I am of the opinion that the English Companies have breached Spanish regulations when visiting Spain and selling /marketing /promoting their products or services aimed at residents.

 

1.      Illegal Contracts in English

2.      Illegal Independent Financial Advisor

3.      Illegal Offshore Companies

4.      Offshore Trusts set up by Henry Woods and run by them

5.      Products sold to Residents.

 

 

MY CONCLUSION

 

GIBRALTAR

 

I am well aware that the CNMV does not regulate Donald Nott or Henry Woods Investment management. Since he had to surrender his financial licence in Gibraltar in 1993.

 

I think that it would be worth your while to contact The Financial Services Commissioner in Gibraltar and investigate the circumstances by which Donald Nott was not allowed to continue working in Gibraltar.

 

The Offshore fund managers must have known that in dealing with Donald Nott they were dealing with an unregulated broker. Moreover the funds, which Donald Nott mis-sold to me in Spain, were not registered in Spain. These fund managers must have known that the law in Spain was being broken. You are the regulatory authority. You must do something about this.

 

Also I believe that you have a duty to regulate your industry within an International environment, in order to protect investors such as myself and indeed to protect the industry from such scandal. You need to establish that Independent Financial Advisors are not allowed to break the law, particularly in European Union Member States.

 

As I understand it from the Investor Compensation Bill, product producers in an offshore EU Region are required to give a written appointment to any investment business firm through which they sell their products and are required to ensure that the investment business firm complies with the Act. This element of industry self-regulation is central to the supervisory regime for restricted intermediaries under Part IV of the Act. The new subsection reinforces this provision by making it an offence for a product producer to deal with an investment business firm without giving an appointment in writing to the firm and without checking that the investment business firm meets the authorisation requirements of the Act.

 

The Investor Compensation Bill also states that the purpose of regulation is twofold, to protect investors and to promote confidence in the financial system, and goes on to state: - While an argument can be made that investors should carry the associated risks themselves, the Government takes the view that the stronger argument is that individual investors are not generally well equipped to make an informed assessment of the risk that an investment intermediary will fail. In addition, people make mistakes: it can be easy with the benefit of hindsight to criticize people for believing promises of higher than normal returns on their investments, but in many cases the motive for believing the promises is not so much greed as a lack of the knowledge needed to appreciate the risks.

 

I believe Donald Nott has taken advantage of us by way of getting higher commissions. Donald Nott has not shown any care, and professionalism, this surely amounts to criminal negligence. Residents in Spain must look to the CNMV for protection that one expects in any EU Member Country.

 

I look forward to the result of your enquiry,

 

Yours truly

 

 

 

 

 

 

David Klein                                                          Susan Klein

 

 __________________________________________________________________________________________

 

Tony Bainbridge

Aloha azahara 1

BLOQUE –1  6b

MARBELLA 29660

 

Tel: 0034 952 818468

 

                                            12.9.02

 

CNMV

Comision Nacional del Mercardo de Valores

Paseo de la Castellana,19

28046 Madrid

 

 

 

Dear Sir,

 

COMPLAINT

 

 

I am: -

Tony Bainbridge     Resident in Spain NIE X 2448577-C

Age 8/7/1942

 

Investments Agent

Henry Woods Investment Management

Calle Azorin 4, 29600 Marbella.  Spain.

Playa Arenal 403730 Javea. Spain

 

BACKGROUND

 

I am a retired person with no income or pensions living on the Costa Del Sol. I take the Sur in English and Entertainer newspapers for news and information; I also listen to the English Radio Onda Cero 101.6 fm.

 

As a result of the advertisements of the company Henry Woods of Marbella offering excellent returns on investments I decided to make contact with them.

 

INITIAL CONTACT

In early September 2000 I made an appointment with Donald Nott (DN) the owner of Henry Woods Investment Management (HWIM). Prior to the meeting he wanted to know how much I had to invest and where my money was. He took details over the telephone; he needed this to have the various papers ready for signing.

 

 

THE MEETING

 

On the 12 of September 2000 I went to the offices at Calle Azorin 4, 29600 Marbella at approx 4.p.m.  My first impression was that the offices were very businesslike and professional.

I explained I was nearly 60 and knew nothing about investments and was looking for an income since I have no pension or income of any kind.

 

Donald Nott (DN) asked me how much I had to invest and I informed him I had £125,000 pounds sterling. I emphasized I was not looking for any risks and wanted my capital protected and I required a minimum income of £10,000 pounds sterling per year, which Donald Nott assured me I could achieve, with no loss of capital. In fact Donald Nott assured me I would get Capital appreciation on my money.

 

DN then produced various clients’ portfolios with the clients name blanked out showing me that he was making 35% plus profit for his clients. I was of course impressed. I was also assured by Donald Nott for his fees this included constant monitoring of my investments.

 

The meeting lasted about one hour, DN explained what he was going to do with my money and asked me to sign blank forms to enable him to transfer and arrange everything.

 

FEES

 

I was given an option to either pay a % of the portfolio, or a % of the profits achieved, I opted for the later.

 

PAYMENT

Money was paid from Royal Bank of Scotland in the Isle of Man direct to the companies DN had the papers prepared which I signed as follows: -

 

THE PORTFOLIO

Europe

Forsyth Greater Europe Fund                      20,000 pounds sterling

Invesco GT Pan European Fund                 14,484.40

Invesco European Enterprises                      5,151.85

Thames River Capital Eastern Europe         8000

 

Far East

Aberdeen India Opportunity Fund                3902.60

Invesco GT Asia Enterprises Fund              2,000    

 

Global

Forsyth Golbal Emerging Markets               10,000       p/s

Forsyth Thermatic Fund                                 30,000

Invesco GT Healthcare  Fund                       15,000

Aberdeen Gobal Technology Fund              14,109.40

 

TOTAL  £122,000

 

  

CONTRACTS NOT IN SPANISH

All paperwork and articles, which I signed, were in English.

 

EVENTS

 

After the investment I received many news letter from Henry Woods indicating that I should have confidence and not panic since this was normal for the market. The first valuation I received was on the 31st December 2000, showed a loss of 9.06%. I telephoned Mr Nott and expressed my concern to be informed that I should not worry. Even now that I am down around 40%  Donald Nott is assuring me not to worry and to trust him.

 

I continue to note full-page advertisements still appearing in the local press with long editorials making substantial claims, which I know to be misleading and false, especially on radio, due to my portfolio showing losses.

 

 Naturally as my funds were going down I made a lot of contact with Donald Nott expressing my concern and reminding him of the promises he made that I would not loose my capital. Donald Nott was always telling me not to worry and all would be well.

 

I was so concerned during the past 12 months that I telephoned Henry Woods frequently. At this stage I found it difficult to make contact with Donald Nott in spite of the fact I was loosing 25% of my money.

 

 SUMMARY

 

I went to Henry Woods with firm instructions that I did not want any risk or loss of capital. I am now down about 40% and I have had to sell off Henry Woods Portfolio of bad investments to enable me to live, keeping in mind I can never retrieve these losses. I am still drawing off my investments to live.

 

Obviously I am very angry that I have been mis sold investment and obviously Donald Nott had no duty of care at my portfolio. I reminded Donald Nott constantly that I needed income; I feel I have been abused

 

I am now aware of a group of other investor who have been mis led in the same way being sold similar poor products which are totally not suitable for the particular investors that required income from their capital.

 

I have various documents to confirm my complaint and await hearing from you.

 

This complaint is being sent to you by email and the hard copy by post.

  

Yours sincerely

  

Tony Bainbridge

 __________________________________________________________________________________________

 

 

C /Heroes de Baler 4..

Parque Done Sofia.

29640. Fuengirola

Malaga Spain.

 

Tel: 0034 952 467 663

 

                                            12.9.02

CNMV

Comision Nacional del Mercardo de Valores

Paseo de la Castellana,19

28046 Madrid

 

Dear Sir,

 

COMPLAINT

I am: -

John F.Moseley

Age 78.

Living in Spain since  April 2000 Spanish resident . NIE X3159741-R

Address C /Heroes de Baler 4..

Parque Done Sofia.

29640. Fuengirola

Malaga Spain.

 

 (Telephone 952 467 663)

 

 

Investments Agent

Henry Woods Investment Management

Calle Azorin 4, 29600 Marbella.  Spain.

Playa Arenal 403730 Javea. Spain

 

 

On 15th of May 2000 we were visited by David S Vance the representative of Henry Woods

We invested £30,0000  in a Policy Income and Growth Series 2 with a quarterly payment of £753.

At no time were we told that there was an element of risk with this type of policy.

The policy was in the names of my wife and myself with Scottish Life International. Douglas Isle of Man.

I telephoned  the insurers in September to ascertain the surrender value and was told around £8000.

After two we weeks we decided to surrender the policy and on September 22nd the amount of £6297

was paid into our UK bank..This means,allowing for the amounts received, our total loss was  £17679...

No more contact has been made by ourselves with Henry Wood.

 

Yours sincerely

 

 

John Moseley

            __________________________________________________

 

 

Grosvenor Limited,

Townsend,

Galmpton,

Kingsbridge,

Devon TQ7 3EU

United Kingdom.

 

Tel/Fax: 00 44 1548 561813

 

13th November 2002

 

Comision Nacional del Mercado de Valores,

Paseo de la Castellana, 19

28046 Madrid.

 

Dear Sirs,

 

Complaint

 

I am writing on behalf of Grosvenor Limited of whom I am a director. Grosvenor Limited is a UK incorporated company.

 

Investment Agent

Henry Woods Investment Management (HWIM)

Calle Azorin 4, 29600 Marbella, Spain.

 

                                                                  

Background

 

Grosvenor Limited is incorporated to provide care for the elderly.  The company’s primary asset now consists of two investment portfolios.  The portfolios are viewed by the directors as a crucially important part of the beneficiaries financial well being and as such could be described as having the characteristics of pension funds. 

 

Until 1998 the investment portfolios had been administered internally by company officials but in the first quarter of 1998 it was decided to augment our investment expertise by placing the portfolios with an experienced and professional adviser.

 

We were attracted by the publicity and subsequent presentations made by HWIM and consequently made a decision to entrust the portfolios to them in March 1998.

 

Meeting, discussions and objective

 

Meetings with HWIM were conducted by our resident representative in Marbella.  At the outset HWIM stated that while our investment policy had been profitable until then, it was, in their opinion, too conservative and therefore achieving neither an adequate performance for its size nor meeting its longer term objectives.  HWIM recommended strongly that we should follow their advice to move substantial funds into offshore variants of unit trusts.   They claimed to have had expertise and very good experiences which would provide an improved performance through both capital growth and income.

We had no previous experience of this type of investment and therefore agreed to follow their advice and Henry Woods were duly appointed financial advisers on a discretionary basis in early 1998.  The investment mandate was to provide capital growth within a balanced risk profile. The initial investment after certain transactions including some disposals and switches in the interim stands at US$1,293,786; these monies were placed largely with three UK Unit Trust Houses namely Baring, Invesco and Forsyth and spread over 16 individual funds.

At the initial and subsequent meetings we were led to believe that other investors had seen significant gains with very similar portfolios and anonymous examples were given. 

 

Performance

 

Losses were incurred from inception which caused concern.   We were, however, persuaded that the investments were sound and given time would improve.  Significant contact was maintained with HWIM and concern was expressed as to the performance of the portfolio over the next two years. At several junctures we expressed surprise as to the aggressive investments held within the portfolios and their suitability given the stated investment mandate.  Thus, we progressively lost confidence in our adviser and had often considered moving the portfolio elsewhere.  We even considered selling the investments in order to stop the escalating decline in the portfolios’ value.  However, we had a natural reluctance to incurring such large losses and delayed taking action until June 2002 when we eventually terminated our relationship with HWIM.  Throughout this period we were encouraged by HWIM to remain with the existing investments and strategy.  During 2001/2, Henry Woods even went as far as to no longer charge a management fee which I took to be a tacit admission of failure to implement the agreed investment strategy.

 

During this period we sought on several occasions the opinion of other Advisors in London who considered the portfolios were of too high a risk, too narrow in spread and not tailored to meet the investment objectives agreed when the relationship was instigated. 

 

Termination/Complaint

 

Our relationship with Henry Woods was terminated on 24th June 2002 at which time the portfolios were valued at US$660,485 making the loss incurred over the four year period US$633,391 or 48.9%.  We have now had to crystallise the losses by selling funds in order to meet our obligations. Our complaint against Henry Woods does not primarily concern the absolute performance of the investment portfolio, poor as it was, but rather that the portfolios, in our opinion, were not suitable to meet the agreed investment objectives. I should stress again that this issue was raised with HWIM on numerous occasions but I was repeatedly led to believe that the portfolios were appropriate to the company’s objectives.

 

During a recent short visit to Marbella, other investors communicated to me that legal action is being undertaken against HWIM on the grounds of mis-selling as the Company is neither registered with your organisation nor authorised to provide investment services in Spain.  We understand that a large number of clients of HWIM have registered complaints to you.  This came as a shock to me partly as I was unaware that other individuals had experienced the issues I have raised above.  In addition, I believed I was dealing with a reputable, regulated entity. 

 

We have now seen your letter to Mr. Klein dated 23 Jan 2001 which confirms our understanding that HWIM are in fact acting without regulatory authority.  This raises the question as to the legality of the contracts entered into with the various unit trust companies on the advice of HWIM.

 

We should be grateful if you would kindly confirm that our understanding of HWIM’ regulatory position is correct.  We would also be interested in your opinion as to the status of the contracts entered into with the three unit trust companies.

 

Your prompt response would be appreciated.

 

Yours faithfully,

Dr.A.J.W.Cameron.

Director – Grosvenor Ltd

 

 

© COSTA DEL SOL ACTION GROUP
Against Unlicenced Financial Advisers & Product Providers that support them.