The structure of the entire Investment Trust sector of the London Stock Exchange (one-third of tje FTSE 250) now shown to be a scam designed mainly to eliminate any and all liability of FCA Authorised Investment Managers.

As we gird our loins for the forthcoming Octopus and Albion High Court hearings in October and December, and the matters set out recent High Court decision [BL-2023-000492] it seems an apposite moment to consider the role of the Directors all of whom are stated to be Non-Executive and that there is not even a single employee let alone any"executive" or "management" running the companies.

Delegation of every single executive or managerial function does not remove accountability - even the FCA states:" ... this does not reduce their accountability for what they delegate"

Seems to me that the decisions in Singapore [Inter-Pacific Petroleum] and Australia [Star Entertainment Group] have blown out of the water the pretence that FCA authorised invetment managers are not "executive" directors of Investment Trusts and have primary legal liability for acts of negligence and fraud.

Non-executive Directors are not entitled to rely on "executies" or "management" of the company when there are no such persons. NEDs are clearly to be held to account as if they are full blown executives.

Just try reading the "blurb" in the Strategic Reports of the entire sector, not just the VCTs, to see the wriggle and squirm used by the likes of Octopus and Albion to evade any accountability or liability. 

Will Octopus Investment Group be held to account by a Liquidator to return prior fees based on demonstrably false/unreasonable investment valuations and false filings at Companies House?

What will Albion have to say?

Is JP Morgan now to be declared as a Director of it's funds and held accountable for false and perjurious filings under the Companies Act?

Is the Institute of Directors negligent in it's advice and training materials for NEDs in the Investment Trust sectorBackground reading: 

https://www.iod.com/resources/company-structure/what-is-the-role-of-the-non-executive-director/




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