The Advisers Committee for Investors (ACI) was formed by advisory firms Magellan and Financial Partners in the immediate aftermath of LMIM’s announcement that it was going in into voluntary administration in May this year.
The Middle East coordinator for the ACI, Sean Kelleher, who is also chief executive of Mondial, said: “The real driver behind this togetherness is the fact that we care about our clients; and the best way we can help them, given the nature of the crisis is by working together, sharing resources, and being focussed on specific outcomes.”
In addition to Mondial, competitors Globaleye and Holborn Assets are also among the members.
The aim of the ACI is to work to try to recoup as much as possible for the investors in the funds, through fighting various legal battles. In order to build up a “war chest” with which to do this, IFAs which have signed up must contribute $3,000 towards legal costs and sign over any position as creditor – i.e. give up any unpaid commission.
One of the largest of LMIM’s funds is the Managed Performance Fund which had AUS$400m invested in it, of which it is estimated around $81m was invested through 28 firms based in the UAE. So, while it is a clear positive for the advisory industry in the UAE that seven firms have so far joined, there are still those who are not yet taking action for their clients. Furthermore, it is rumoured that some IFAs are still seeking commission payments.
“We believe that doing nothing is a seriously poor idea as the cash pots still available within the funds can be easily eroded by legal fees,” added Kelleher.
IFAs wishing to join the ACI, or who want more information, are urged to contact ACI’s central administration on [email protected].
