Entrepreneur Robert Tchenguiz forced to sell assets to pay Kaupthing creditors

2014-09-11 23

Flamboyant entrepreneur Robert Tchenguiz has had part of his business empire sliced off by receivers seeking to recoup funds for creditors of Kaupthing, the failed Icelandic bank. ...

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Kaupthing creditors fear Investec intends to walk away from £150m debt

2014-04-05 23

Investec, the FTSE 250 banking and asset management group, is preparing to walk away from a debt of about £150m owed by one of its offshore businesses, according to those chasing the money on behalf of creditors to the failed Icelandic bank Kaupthing.

The debt, equivalent to almost 40% of the Anglo-South African group's profits for 2013, is an unintended legacy of Investec's administration of a hugely complex offshore trust on behalf of Robert Tchenguiz, one of London's most active corporate raiders before the 2008 banking crisis.


In January a court in the Channel Islands found that an Investec subsidiary, Investec Trust Guernsey (ITG), must be held liable for some of the borrowings Tchenguiz had taken on, through his trust, to finance investments. Investec is appealing against the judgment.

With remaining assets in the trust – Tchenguiz's home, his office in Mayfair and several other properties – estimated by creditors to be worth about £30m, the shortfall on the £180m owing to Kaupthing is likely to be enormous.

Tchenguiz is not personally liable for the shortfall. He is appealing against the Guernsey court's decision affirming Kaupthing's claim over trust assets.

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Icesave – another round

2014-02-10 (All day)

The Dutch Central Bank and the British Financial Services Compensation Scheme have brought a case against the Icelandic deposit guarantee fund, TIF, at the Reykjavík District Court, Héraðsdómur Reykjavíkur. The Dutch and the British seek a confirmation that TIF was liable for the EU minimum guarantee of €20.000 (which when currency exchange etc is taken in to account amounts to €20.877 for Iceland) and/or TIF should pay out, with interest, in total ISK556bn, €3.55bn. The Dutch are claiming ISK104bn, €660m and the UK ISK452bn, €2.88bn. The case was brought to court already at end of November last year but has only surfaced now in a press release from TIF. ...

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City of London Corporation: tax havens a ‘core asset’ for the City

2012-01-22 (All day)

A communiqué from the government of the Isle of Man on Friday:
"THE Lord Mayor of the City of London, Alderman David Wootton, is visiting the Isle of Man next week to learn more about the Island’s role as an international business and finance centre."

Tax havens always deny being tax havens, and much prefer these rather grand titles such as ‘international finance centre,’ but anyway. ...

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MP's vote of confidence in offshores

Posted 17/11/2011 - 15:15 by anrigaut

2011-11-17 (All day)

From Manx Radio:

A member of the United Kingdom parliament is defending the contribution offshore centres make to the British economy.

Writing on the Financial Director website, London and Westminster's Conservative member Mark Field says jurisdictions such as the Isle of Man, Jersey and Guernsey have been taking unfair criticism in the UK.

He says many small centres are stable, well-regulated and neutral jurisdictions which provide liquidity and investment opportunities to Britain.

Mr Field also dismisses claims the offshores engage in harmful tax practices, saying the The Foot Review showed that's not the case.

And he says the Isle of Man is currently among the highest rated jurisdictions globally for complying with international standards.

anrigaut on 17/Nov/2011 11:02
Mark Field is MP for Westminster. The City of London is, by all accounts, the biggest 'offshore' centre of all. So it's hardly surprising he defends the activities of tax havens. That doesn't mean what he says is the truth. Awareness of the real harm done by the offshore system's facilitation of tax avoidance (and worse) is growing. Rather than trying to sustain the myth put out by the all-powerful finance industry and the government in thrall to it, Manx Radio might consider looking at the other side of the coin. A good place to start would be the recent "Tax Havens" thread on manxforums where some of the less fooled Manxies are beginning to raise serious and intelligent questions. As one of the contributors neatly put it: "Are we kidding ourselves? We know we are a tax haven. It's how we earn a living. We may wish it were not so but there it is." Now that at least was honest.

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Expats take on Rothschild over equity release schemes

Posted 16/11/2011 - 21:07 by anrigaut

2011-11-16 (All day)

A Spanish lawyer has taken legal action against ten banks, including British bank Rothschild, for their funding of equity release schemes that have left hundreds of British pensioners at risk of losing their homes in Spain.

It represents a test case for at least 800 British pensioners across France, Spain and Portugal who bought into equity release schemes in the belief that by remortgaging their properties and allowing the money to be invested offshore, their children's inheritance tax liability would be mitigated while they would receive a lump sum and a regular investment return to cover the new mortgage. ...
While Guernsey-based NM Rothschild & Sons accepts it provided loans to a number of pensioners to fund the remortgaging of their homes and the investment in offshore funds, it has distanced itself from the advisors who brokered the equity release schemes.

A spokesman for Rothschild said: “Rothschild is confident that the Spanish courts will agree that there has been no wrongdoing on its part in relation to allegations being made against a number of banks by a lawyer in Spain.

"Whilst Rothschild has previously provided loans to a number of Spanish property owners its role was as a lender only. The bank had no part in providing investment or tax advice to borrowers. The borrowers were advised by their IFAs in Spain, who received no commission from the bank.”

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Eurozone crisis raises fears over cash held outside the British safety net

Posted 30/10/2011 - 10:20 by anrigaut

2011-10-28 23

The safety of their money is once more weighing heavily on the minds of savers as the world’s banking system struggles to accommodate the write-offs announced in last week’s do-or-die eurozone deal. ....

There are also dangers closer to home. ‘Offshore’ savings providers, typically divisions of mainstream UK firms based in the Channel Islands or the Isle of Man, are not covered by Britain’s Financial Services Compensation Scheme. Instead they must rely on local schemes that tend to be more complex, less generous and, possibly, less reliable.

The Jersey and Guernsey schemes, for example, cover deposits up to £50,000. But a complex overall ‘cap’ of £100 million, which cannot be exceeded in any five-year period, applies on top of a saver’s £50,000 limit. The Isle of Man applies a higher, £200 million cap. Theoretically, these caps could reduce savers’ compensation to nothing.

On the £50,000 limit, a spokesman for the Jersey scheme says: ‘We will move to a higher limit if Guernsey and the Isle of Man move, but we do not believe in differing standards between finance centres.’

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Overseas pensions face compensation jeopardy

Posted 06/08/2011 - 13:09 by anrigaut

2011-08-04 23

Individuals who hold their money in custodial banks through an overseas pension scheme, such as a QROPS or QNUPS, could be putting their money at greater risk than they realise.

The depositor compensation schemes of major overseas pension jurisdictions such as the Isle of Man, Malta and Gibraltar, stipulate that they do not cover deposits held on behalf of a trust or retirement scheme. ....

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CNN News - UK, Iceland in raid on Kaupthing Bank

2011-03-30 21
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The Iceland president once more refuses tosign compromise deal with UK and NL

Posted 21/02/2011 - 18:13 by Brabander

2011-02-21 (All day)

According to the Volkskrant the president of Iceland has once more refused to sign the compromise deal negotiated by his government with the UK and the Netherlands.
This compromise involved the payment of a rduced rate of interest of 3% to be paid by Iceland on its entirely LEGAL Icesave debt.
Just bear in mind that this criminal individual presided over and sponsored the irresponsible expansion of the Icelandic banks.
Contrast this with the responsible attitude taken by the Irish government which is now paying over 5% for its efforts to remain honest.
I hope nobody will defend the despicable actions of this utter swine!

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