Wait for Knight Williams investors

Elderly investors with the retirement firm Knight Williams will have to wait until the firm appoints its own liquidator before their cases can be referred to the Investors Compensation Scheme.

Even then, they may find themselves in a queue behind other creditors, such as the Inland Revenue and the 250 staff being made redundant from KW following the weekend announcement that the company was going into voluntarily liquidation. Director Robin Knight Bruce yesterday refused to comment on when a liquidator would be appointed but as KW voluntarily declared itself in liquidation, the Investors Compensation Scheme is powerless to act until a liquidator proves that losses cannot be met.

The move follows the sale of KW's investment funds to Singer & Friedlander in April for pounds 17m, but under the terms of the deal KW remains responsible for any liabilities to investors.

The Securities and Investment Board has already received more than 400 complaints alleging that KB, as an independent financial adviser, had given bad or misleading advice.

Allegations of "churning", where investors were persuaded to move funds into KW managed funds, re-generating commission fees, have also been made.

The SIB stepped in when arbitration between KW and investors generated yet more complaints but not one investor who complained to the SIB has yet received a penny in compensation.

A spokesman for the SIB said a decision was made to investigate all complaints before compensation was awarded to the complainants in order to ensure a "fair and equitable" distribution of any money.

Investors who have already had their complaints against the company settled by arbitration will not be able to seek more compensation through the ICS as arbitration awards are legally binding.

Start your day with The Independent, sign up for daily news emails
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral