Knight Williams to sell out to merchant bank
Wednesday 19 April 1995
Singer will pay Knight Williams £5m up front and a further £12m, much of which will go to settling the complaints.
Precise figures for client compensation will emerge only after detailed negotiations, but sources close to the talks expect millions of pounds to be paid out by Knight Williams to the pensioners affected.
Tony Fraher, chief executive of Singer & Friedlander Investment Funds, stressed that the bank was buying only the right to manage £400m of funds. It is not buying any company assets or liabilities, or the independent financial adviser arm of Knight Williams, which will now devote itself to processing the complaints in association with the Securities and Investments Board and the supervising accountants, Ernst & Young.
The proposed acquisition follows 15 months of campaigning by the 350- strong Knight Williams Investors Action Group. Its complaints against the independent financial adviser concern high charges, poor returns and inappropriate products. Knight Williams has been one of Britain's biggest independent financial advisers, with 24,000 clients and £500m under management.
Kenneth Jordan, who founded the group with his wife, Dilys, welcomed the news: "We're very pleased. We're not there yet but we're nearly there. We are most grateful to all the MPs and the press who have supported us."
As part of the deal, Singer will cut annual management charges by 40 per cent, which could represent an average saving of £200 a year on a £20,000 holding.
This will include reducing the 2.5 per cent charge on cash funds to 0.5 per cent, to 1 per cent for bond funds and to 1.5 per cent for other funds.
Once the deal goes through the funds managed by Knight Williams will be dissolved and the assets will transfer to Singer's range of investment funds. Investors will receive shares in Singers' funds in allocations chosen to match, as closely as reasonably possible, the existing asset allocation and risk profile of each Knight Williams fund, according to the merchant bank.
Last year the action group secured an agreement that the SIB would deal directly with the complaints, after dissatisfaction with the previous IFA regulator, Fimbra. All complaints will be supervised by Ernst & Young and referred to the SIB if need be.
"It is important that there was an independent monitor to oversee the complaints procedure," said Mr Jordan, explaining E&Y's involvement.
- 1 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Driving while dehydrated can be just as dangerous as drink driving, study suggests
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
- 5 One Direction: Louis Tomlinson launching his own record label, has already 'signed two acts'
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Driving while dehydrated can be just as dangerous as drink driving, study suggests
Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...