A group of 1,500 investors, including UK expats and retirees and their trustees, have launched a £325m ($426m, €379m) legal action in the Isle of Man against Quilter International (now Utmost International) and Friends Provident International, International Adviser has learned.
The legal proceedings began in early June – and defence will be due in court during the summer.
A source told IA that the class action is based upon the alleged mis-selling of fraudulent high-risk funds – which there was reported “questionable industry practices”.
The investors in question are reportedly mainly retirees or nearing pension age, many of whom reportedly transferred their low-paying pensions to offshore funds that allegedly promised far better returns.
In some cases, these funds were allegedly purchased without the investors knowledge and understanding.
IA reached out to Utmost and FPI for a comment – and both firms declined to comment.
This comes several years after a group of UK and international investors launched a multi-million-pound claim against life insurers Quilter International and FPI.
That case was brought by UK-based law firm Signature Litigations, which said that the insurers “sidestepped British investment regulations” by selling over £100m worth of these products via the Isle of Man.