THE liquidator of the Taylor Group of companies, Mr Paddy McSwiney, will begin contacting former clients of the companies today to ask if they want their funds to be managed by BCP Stockbrokers. This follows High Court approval of the sale of the client lists of two Taylor companies yesterday.
BCP has bought the client lists from Taylor Asset Managers (TAM) and Taylor Integrated Planning Services (TIPS). TAM has a client base of 450 and provided a portfolio management service using international investment funds. TIPS acted as an insurance agent/broker in life pensions and single premium products. It had 600 clients but it is the single premium products list which has been sold.
More than a dozen parties expressed interest in buying the Taylor group's client lists. However, the field narrowed to just two with the lists eventually being sold to BCP Stockbrokers for an undisclosed figure.
As reported in Saturday's Irish Times, the individual client files will not be handed over to BCP without the client's consent.
BCP is hoping to take on the management of the funds for the vast majority of Taylor Group clients who did not lose their funds. A clearer picture of how much money is missing from Taylor Asset Managers (TAM) and from clients managed personally by Mr Tony Taylor - is expected to emerge when Mr McSwiney gets details of a bank account in Jersey.
Mr McSwiney told the High Court yesterday that he had received bank statements from Anglo Irish Bank Corp in the Isle of Man, but not from the Royal Bank of Canada in Jersey.
He said it was clear that monies were lodged to the Anglo account from a number of sources, including investors. However, a "substantial number of transactions" on this account relate to transfers to the Royal Bank of Canada in Jersey.
Yesterday's sale of the client lists will help clawback some cash to pay for the liquidation process and for wages and other monies due, but there is likely to be little, if anything, left to help compensate investors' losses.
Usually fund management companies are sold on the basis of a percentage - usually about 5 per cent - of the funds they have under management. In this case, an upfront payment is being made by BCP to be followed by payments based on the commissions it earns on the Taylor funds which are transferred to it.
In total, 14 parties expressed an interest in the Taylor companies' client lists. Eventually, just two parties remained. Another, separate, offer was made but withdrawn.
The BCP offer was accepted by Mr McSwiney, who felt its terms provide for a more substantial, immediate upfront payment while still providing for a potential subsequent percentage commission.
Last night, the chairman of BCP Stockbrokers, Mr James Buckley, said the company hoped that the majority, if not all, of the Taylor companies' clients would transfer their business to BCP. He said the company should know within two weeks how many clients have transferred. The managing director of BCP is Mr David Cullen.
Mr Buckley said the Taylor clients would fit in well with BCP's existing business. BCP hopes to take on an additional 500 clients from the Taylor group.
BCP, which was set up in 1969, claims to manage assets in excess of £200 million and have 7,000 clients.
