I have a very small holding in Thames Ventures VCT 1 (TV1). This is the remnant of holdings in other VCTs originally invested from 1997 onwards and which have generated a total return of minus 58% to date according to Sharescope although I doubt that is accurate due to multiple consolidations and name changes. I would have sold the holding long ago if it was not for the roll-back of capital gains roll-over relief that would have been incurred.
Now we learn that TV1 held some of its listed shareholdings with IBP Markets Ltd which has been put into Special Administration by the FCA “due to concerns whether there were appropriate systems and controls in place to ensure adequate protection for client monies and client assets at IBP”. About 20% of VCT1’s assets are held by IBP.
Needless to say this is all bad news. Are the assets still there, and what will the administration of IBP cost and will it be charged against the assets? Those are key questions. Also how long will it take to complete the administration and have the assets released – too long is no doubt the answer.
The whole future of TV1 is also brought into doubt by these announcements. The investment management was transferred recently to Foresight Group who have experience of taking on dead ducks but with net assets of £91.9 million according to the last annual report and the reputational damage from these events some vigorous decisions are clearly required.
Roger Lawson (Twitter https://twitter.com/RogerWLawson )
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