The Insurance Companies marketed and sold investment products described as “Portfolio Bonds” or “Insurance Bonds” (with specific product names such as the “Executive Investment Bond” and the “Reserve Investment Bond”). These investment products are referred to below as “Bonds” and were sold to customers all over the world – in particular, expatriate retirees.

The capital invested in the Bonds was placed in various funds which have now failed or suffered substantial losses. The Failed Funds that are currently within the scope of the claim are the following:

Axiom Legal Financing Fund

LM Managed Performance Fund

All other LM Group funds including the Trilogy Wholesale FMIF

Premier New Earth (all investment schemes managed by Premier New Earth)

Premier Eco Resources Fund

Kijani Fund

The Class Actions are being brought in the High Court of the Isle of Man where the Insurance Company Defendants are domiciled. In very simple terms, the claims are that:

OMI and FPI made false statements about the nature of the Bonds to investors. In particular, statements which led investors to falsely believe that they would not be exposed to the risk of a total loss of capital when they invested in the Bonds.

Investors relied on these false statements and suffered substantial losses as a result. Had they known the true position, they would have invested their money into safer investments.

OMI and FPI had a legal duty to carry out proper due diligence on the Failed Funds but failed to do so.

As a consequence of the Insurance Companies’ failures and breaches of duty, investors’ money was invested into the Failed Funds resulting in a substantial (in many cases total, or almost total) loss of capital.

The aim is for claimants to receive as large a recovery as possible. However, the return will depend on various factors which cannot be predicted at the moment, including whether or not the defendants make an early settlement offer, and so it is impossible to be definitive at this early stage or offer any guarantee of what might be recovered. Funding, insurance and legal costs will also need to be deducted from any recoveries prior to distribution to investors.

The sale of the products was structured in a way which means that, in most cases, investors are unable to benefit from any UK regulatory compensation schemes (and the equivalent Isle of Man regulator has no comparable scheme). We are however aware of some instances where the Financial Services Compensation Scheme (FSCS) has compensated investors (for example, because an FCA-regulated entity was involved in the sale process). If you have received compensation from the FSCS or any other party, please provide full details when you sign up.

It is highly unlikely that recoveries (or at least any meaningful recoveries) will be possible through the liquidation of the Failed Funds since there is little or no value left in them, and neither OMI nor FPI are likely to compensate investors voluntarily.

In short, therefore, a legal claim against OMI and FPI is likely to be the only viable route open to investors to recover compensation for their losses.

The Class Actions are being managed by a Litigation Management Committee which includes fellow investors in the Bonds. The Committee is advised by an experienced team of lawyers and other professionals practicing in London and the Isle of Man (please see below for details of the Legal Team) (the “LMC”). When signing up to the claims, and before being admitted as Members of the Class Actions (at the point at which they formally become Claimants), investors will need to give a delegated authority to enable the LMC to give instructions to the Legal Team in order for the litigation to be conducted. This is because it would be unworkable for the Legal Team to have to give their advice to, and seek instructions from, hundreds of individual investors, particularly in the context of fast-moving litigation.

If either of the Class Actions are defended all the way to a final judgment, we estimate that they may take one to three years to resolve in the Isle of Man Court.

Either Class Action may be resolved sooner if the defendants agree to a mediation or settlement. The LMC is empowered to make a decision, acting on legal advice, as to whether or not to accept a settlement offer. However, the case has been set up (and the funding and insurance arrangements have been structured) on the assumption that both cases will need to be pursued all the way to final judgment.

No. A litigation funder has agreed to finance the legal costs of the proceedings. Insurance from a reputable insurer has also been purchased for the benefit of the existing claimants in order to cover a potential adverse costs exposure up to a defined financial amount.

These arrangements have been put in place so that you will not be required to make any financial contribution to the legal costs of pursuing the Class Actions. Further, we believe that there are sufficient arrangements in place to meet any liability for the defendants’ costs if either of the Class Actions should fail or if there should be an adverse costs award against some or all of the investors.

If there is a successful outcome (whether through a settlement or following judgment), contingent amounts will be paid to the litigation funder, the ATE insurer, the LMC, CCI and the Legal Team out of part of the proceeds.

Yes, provided you agree with the information that they provide in response to the questionnaire.

You can only participate in the Class Actions if you were sold a Bond by OMI or FPI. Unfortunately, we cannot accept registrations from direct investors in the Failed Funds who were not sold a Bond.

Please provide us with copies of your supporting documents and we will confirm whether you are able to join.

There is a strict time limit to bring legal claims for losses of this nature. However, we believe that the vast majority of investors will still be in time to bring their claim. We will, however, ask you to complete some questions in a questionnaire in order to assess whether you qualify.

Coburn Corporate Intelligence Pty Ltd ACN 160 777 962 (CCI) specialises in investigating and bringing large claims against financial institutions. We put together a team of lawyers and help to arrange funding and insurance to bring actions in order to obtain compensation for investors. The majority of our fees are contingent on winning the case and there is therefore a full alignment of interests here.

The LMC is advised and represented by an experienced and leading legal team comprising:

Signature Litigation LLP

Signature is a law firm based in the City of London and is recognised by the major legal directories for its expertise in commercial and banking disputes. Signature’s specialism is major and complex litigation: for example, they acted for the largest investor group by value in the rights issue litigation against RBS. Daniel Spendlove, a Partner, will lead this particular matter.

Graham Chapman QC

Graham is a leading commercial barrister and a member of 4 New Square Chambers. He is acting for a claimant group in the Ingenious film finance group litigation and has extensive experience of litigating in the Isle of Man. He is recognised in particular for his expertise in commercial litigation with an offshore element and in complex investment disputes.

Jonathan Wild (Callin Wild)

Jonathan is Head of Litigation at Callin Wild, a law firm which has one of the most renowned litigation teams on the Isle of Man. Jonathan is recommended by the major legal directories and has been recognised as a Leading Individual for his work in recent years.

You will not be added to the Class Actions at this time. CCI will add you to a database for the Class Actions and we may require further information from you. If you are eligible to join and complete the necessary steps, you will only be added as a Member of the Class Actions at the point at which you are formally added to the proceedings by agreement or court order. CCI or the Legal Team will inform you when you have been added to the Class Actions.