ONE of the Taylor companies which went into liquidation two months ago had about 1,400 clients with investments totalling about £30 million, a report presented to the High Court yesterday stated.

The report related to Taylor Asset Managers Ltd (TAM), to which accountant Mr Patrick McSwiney was appointed official liquidator in late August.

Mr McSwiney, in a report presented to Mr Justice Shanley yesterday, said that since his appointment, he had been endeavouring to establish the assets and liabilities.

Stating that TAM had about 1,400 clients with investments of about £30 million, Mr McSwiney added that these investments were in a wide range of both domestic and foreign institutions. Fidelity Investments and Gartmore Investments were by far the largest institutions holding funds on behalf of investors.

From his investigations, he had established that these investments were held in the individual names of clients of TAM and, therefore, did not constitute assets of the company.

Insofar as those clients placed their investments through TAM, there was an obligation on him, as liquidator, to see that those funds were returned to him. He had been working with the staff of TAM and the institutions with a view to having those funds returned to the individual investors.

Mr McSwiney said it had been brought to his attention that a number of investors were missing funds. To date, 18 claimants had arisen under various headings. The extent of their losses or the amount of the missing funds had not been established clearly.

It would appear that about £2.5 million was unaccounted for. However, this could not be established finally until further extensive investigations were carried but and certain missing records were found or re-created.

The liquidator said he was endeavouring to realise a value for the trade of the company which would enable him to transfer the management function to a new authorised intermediary with the consent of the individual investors. To date, no agreement had been signed.

There were sums due to TAM by other "Taylor companies" but until investigations were complete, it was impossible to establish the amounts of those balances due or whether any monies would be forthcoming from this source.

In a report on another company, Taylor Investment Group Ltd (TIG), in liquidation. Mr McSwiney said he had extreme difficulty in establishing the financial position. He had been frustrated by lack of books and records and primary documentation regarding any transaction in TIG.

He had, however, established that the company held bank accounts with Royal Bank of Canada in Jersey and Anglo Irish Bank Corporation in the Isle of Man, and had a small account with Bank of Ireland, Dublin.

From a review of bank, statements already furnished particularly by Anglo Irish Bank, it was clear monies were lodged in this account from a number of sources, including investors. However, a substantial number of transactions on this account related to transfers to Royal Bank of Canada in Jersey and it would not be possible to clarify matters until more information became available.

A large number of transactions seemed to suggest the major assets and liabilities of TIG comprised inter company balances with other Taylor controlled companies. TIG seemed to have been used as a vehicle for transferring monies in the form of commissions from financial institutions to Taylor Asset Managers Ltd and to provide funding to other Taylor companies.

Hopefully, when the various transactions were investigated, they could establish the true asset and liability position of TIG.

Mr McSwiney, in a report on Taylor Integrated Planning Services Ltd (TIPS), in liquidation, said primary records were well maintained by a bookkeeper. He had received a copy of the statement of affairs which showed a deficit of £40,183. The apparent reason for the deficit was the inability to recover certain inter company loans due from other "Taylor" companies.

In relation to Rolyat Ltd, in liquidation Mr McSwiney said he had extreme difficulty establishing its financial position. In particular, he had been frustrated by lack of books and records of any documentation which might explain transactions in Rolyat.

A total of £80,000 in cash withdrawals was made from one bank account since it was opened in September 1993 for which no documentation was available.

On the application of Mr John O'Donnell, counsel for Mr McSwiney, the court yesterday approved the sale of certain client lists of TAM and TIPs to BCP Stockbrokers Ltd for an undisclosed price. The offer is based on an immediate up front payment and subsequent percentage commission, with payment calculated on first year income earned from clients who transferred business.

Mr O'Donnell said no details of clients would be disclosed to the purchaser without consent and, if there was no consent, nothing would be furnished.

TAM provided a portfolio management service using international investment funds. It had a client base of 450. TIPS carried on business as an insurance agent/broker, mainly in life, pensions and single premium markets. In respect of single premium products, it had a client base of 600.