LM Document States that the Managed Performance Fund Was “Not for Distribution to Hong Kong Public”

A source has given me a copy of a document that is sure to outrage the many LM victims based in Hong Kong. I have drawn a red arrow pointing to the key sentence:

LM MPF Bond, Platform,Trust, SIPP Providers (with Arrow)

The LM Managed Performance Fund was not for distribution to the Hong Kong public because it was not authorized by the Securities and Futures Commission. The fund should have been available only to professional investors, not the middle-class families whose lives have been wrecked.

Local brokerages such as Financial Partners, and insurance companies such as the one formerly known as Royal Skandia, have no moral defense—and probably no legal defense—for distributing the LM MPF fund to families in Hong Kong.

For readers who are not familiar with the LM scandal, take a look at the South China Morning Post article, “When an investment fund goes bad“, as well as “The LM Emails“.

3 thoughts on “LM Document States that the Managed Performance Fund Was “Not for Distribution to Hong Kong Public”

  1. Manita Khuller

    So by implication that means that investing in LM was only through licensed intermediaries like Skandia who were supposed to be the “filter” doing the due diligence that should have prevented ordinary retail like me and others, losing their life savings in an unsuitable investment. That again points the gun to the bond providers like Skandia. When are we going to take them on as a group class action?

    Reply
    1. Lindell Lucy Post author

      It’s my understanding that class actions are not allowed in Hong Kong or any of the other countries in the region. Also, in Hong Kong, insurance companies such as Skandia are self-regulated, meaning they are not regulated at all. There is no independent regulator to turn to. However, that will soon change. By the middle of 2015, Hong Kong will have an Independent Insurance Authority, which, if it is truly independent, should force Skandia, Friends Provident, Financial Parnters, etc., to compensate LM MPF victims.

      Besides wait for the IIA, I am not sure what is the next best option for LM victims based in HK (or elsewhere). Would love to hear any suggestions or updates…

      Reply
  2. Manita Khuller

    Please support the recently started petition vs the Peter Drake and LM Investments, Australia who robbed thousands of pensioners of their life savings, aided and abetted by the likes of Royal Skandia and Friends Peovident.

    You can find it here..it’s easy to sign and support and please share the link. with others too.

    https://www.change.org/p/prime-minister-tony-abbott-give-back-our-life-savings?recruiter=200046026&utm_source=share_petition&utm_medium=email&utm_campaign=share_email_responsive

    Reply

Leave a Reply

Your email address will not be published.