Four representatives of the 60-strong LM Thailand Investor Group (LMTIG) presented their case to the British Ambassador to Thailand Mark Kent on Tuesday.
Previously Kent said the UK was unable to intervene because LM was based in Australia.
However, given that nearly 2,800 of the 4,500 expats invested in the funds were British, the action group pressed their case to the ambassador who agreed to put them in touch with the Financial Conduct Authority and HM Revenue & Customs.
Be wary
Kent also agreed to help the investors set up a meet with the British High Commission in Canberra later this year to discuss their findings on LM Investment Management (LMIM).
In July, the action group persuaded the Australian ambassador to Thailand to represent their case to the Australian Government.
Kent asked that LMTIG provides suitable words to be included in a travel guide for UK expats in Thailand to suggest they err on the side of caution when being approached by unlicensed IFAs in Thailand giving investment advice.
During the meeting, the representatives focused on what it describes as the British “fallout” of the 2013 collapse of Queensland-based LMIM.
The action group estimate that the fallout caused a loss of around £140m (€193m, $214m) to British investors alone, with £22.5m of that estimated to be QROPS related.
High commission payments
The LMTIG’s assertion was that offshore British IFA’s were operating illegally in Thailand in collusion with Guernsey or Isle of Man-based pension trustees and bond providers.
They claimed the advisers allowed their money to be invested in high-risk unregulated collective investment schemes (UCIS) with little or no due diligence, in return for high commission payments.
Members of the LM Thailand Investor Group (LMTIG) lost money after being sold the funds by advisers in Thailand.
The embassy’s director of trade and investment, Marcus Winsley, and the head of consular assistance operations Nathan Sunley-Smith also attended the meeting on Tuesday.
Last week, the Securities and Exchange Commission in Thailand announced it was planning to toughen up its supervision of financial intermediaries.
