Provisional Liquidators appointed to derivatives traders

The appointment of the Provisional Liquidators, Finbarr OConnell and Michael Jervis of Grant Thornton, follows an application by the FSA to the High Court for MFL to be compulsorily wound up under section 72 of the Financial Services Act, on the grounds that the firm is insolvent, or that it is just and equitable for the winding up to take place. The hearing of the FSAs winding up petition will take place on 24 November 1999.

The FSAs winding up application follows an Intervention Order made by the SFA on 23 September 1999 in relation to MFL. The SFA intervened on the grounds that MFL had, in breach of SFA rules, failed to maintain adequate resources and that there had been an unapproved change of controller.

The appointment of the Provisional Liquidators will serve to secure the firms and its clients assets. The Provisional Liquidators will also complete the process of disposing of clients positions by their closure or transfer to other firms. This process was commenced by the firm following the SFAs intervention.

The FSA has evidence that funds from an unauthorised firm, Moneywise Investments Limited ("Moneywise"), were paid to MFL. Moneywise used offices at MFLs premises at International House, 1 St Katherines Way, London E1 9UN.

The FSA has obtained an injunction against Moneywise restraining Moneywise from carrying on unauthorised investment business in contravention of section 3 of the Financial Services Act 1986.

Notes for editors

All public enquiries concerning the business affairs of the company should be made to the Provisional Liquidators at the following address: Grant Thornton House, Melton Street, Euston Square, London NW1 2EP.

Moneywise Investments Limiteds registered office in the British Virgin Islands is at Akara Building, 24 De Castro Street, Wickhams Cay I, Road Town, Tortola, BVI. It is not connected with Moneywise Investments plc, a PIA regulated firm operating from Forest Gate, London.

Section 3 of the Financial Services Act provides that no person shall carry on or purport to carry on investment business in the UK unless he is an authorised or exempted person under the Act.

Section 72 of the Financial Services Act states that on the FSAs application the Court may wind-up an authorised person or appointed representative if the person is unable to pay his debts within the meaning of section 123 or, as the case may be, section 221 of the Insolvency Act 1986 or the Court is of the opinion that it is just and equitable that the person should be wound up.