Your Industry  

Advisers face ruin over Propertybourse advice

In March last year an interim report circulated to the group from Propertybourse’s appointed administrators, BM Advisory, attributed the funds’ demise almost entirely to poor management.

Robin Christie, founder of Propertybourse and chief investment officer of Mission XP, disputed the appointment of BM Advisory and denied its claims.

Article continues after advert

He said the 2008 financial crisis caused funds to struggle for liquidity after banks withdrew capital from the market. The funds stabilised, but were hit again by the re-emergence of the euro crisis in 2011, he said.

Mr Christie claimed Mission London Residential Investment fund - set up in 2010 and also an unregulated fund managed using a similar approach to the Propertybourse schemes – last month paid an interim distribution of 125 per cent of capital invested, with other distributions planned for 2016.

Responding to the Fos decisions, Mr Christie blamed Activate for “flawed processes”, including placing 75 per cent of a client’s pension into two unregulated property funds. “The ombudsman dismissed [Activate’s] claims as conjecture and concluded that the funds’ offering documents were clear, setting out the risks for both IFAs and investors alike.”

Malcolm Fillmore, joint administrator at administrators BM Advisory, confirmed he is continuing to investigate Propertybourse.

Mr Christie accused Activate and Mr Fillmore of an “orchestrated media campaign” based on misleading information.