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The Audit of HBOS

One of the mysteries not adequately researched in the recently report into the demise of HBOS was the failure to examine the audits of the company that took place. The Financial Reporting Council (FRC) decided two years ago not to look into the audits of the bank by KPMG prior to its collapse and acquisition by Lloyds in 2008. But the Parliamentary Treasury Select Committee has now been looking into this further. Andrew Tyrie, the Committee Chairman, has already suggested the FRC ...

Lloyds Bank ECNs and the FCA

Investors in Lloyds Bank Enhanced Capital Notes (ECNs) lost the second round of their battle to stop Lloyds redeeming them at par in the Appeal Court. They previously won the case in a lower court, and are now planning to appeal to the Supreme Court. These ECNs are held by many retail investors, having been converted from PIBS issued by Halifax and the Cheltenham & Gloucester Building Society. Lloyds is apparently arguing that the wording of the conversion terms, on which basis ...

Globo Administrators Report – There’s No Money Left

The Administrators of Globo Plc have published their initial report into the affairs of the company. It makes for depressing reading. In essence one might sum it up in the phrase "There's no money left" which was the infamous wording of a note left by one UK Treasury Minister to his successor. In this case, even the secured creditors (Barclays Bank in the lead), are unlikely to get paid in full and all unsecured creditors and shareholders will get nil. The assets ...

What to do with your NS&I 65+ Bond

  Many readers might have taken out the Government's offering of NS&I 65+ Guaranteed Growth Bonds a year ago when they were made available. They offered a very attractive rate of interest of 2.80% gross on the one year version, but these are now about to mature so investors have to decide what to do with them. What are the options? You can cash them in. Or you can re-invest the proceeds in another one year term bond at 1.45%, and that's not ...

New VCT Rules and Knowledge Intensive Businesses

I attended the Annual General Meeting of Northern Venture Trust (NVT) yesterday - one of the more successful VCTs. Management representative Tim Levett gave us a briefing on the impact of the new "draconian rules" (as he called them) for VCTs arising from EU regulations. His criticism also arose from the fact that the legislation is effectively retrospective as it impacts both "old money" from past fund raisings and new money. One particular oddity is that the amount of money than can ...