The main distributor of the suspended Axiom Legal Financing fund is urging investors to sack the fund's directors with immediate effect.
Axiom, an unregulated collective investment scheme (UCIS) which invests in the funding of no-win, no-fee legal cases, was suspended in October due to a significant number of redemption requests amid a series of allegations about mis-management at the fund, which fund manager Tangerine Investment Management deny.
Taylor Moor has written to investors saying "it is time for investors to take control of the situation" at the troubled fund, and to replace the current directors with new, impartial individuals.
An emergency general meeting (EGM) to discuss the future of Axiom Legal Financing fund and review a report by KPMG into the investment is due to take place on 11 December, but in its letter Taylor Moor called on investors to boycott the meeting.
Giving its reasons for the revolt, Taylor Moor said KPMG - which was brought in a month ago to review the fund - has not been given enough time to investigate practices there.
Taylor Moor also criticised the directors for failing to explain how the fund - which has previously been reported to stand at £117m but which Taylor Moor puts at £65m - became in a position where it needed to be suspended.
"It needs to be noted that at no point has a satisfactory explanation been provided by the current directors as to how the fund finds itself in its current position, which has resulted in the suspension of the fund and the need to hold this EGM," the letter said.
Appointing new, impartial directors "will be the only way to safeguard the interest of the investors and shareholders in the future", the letter continued, removing all possible conflicts of interests, "which are currently deeply concerning".
"Further the new directors will be able to provide stability to the fund, continue to preserve fund assets and shareholder value, continue evaluation of the loan book and value of such claims linked to such loans," it said.
The real concern from the underlying investors is that very little information is being supplied by the directors and that the decisions proposed to be made at the EGM are both premature and inadequate, the letter concluded.
A spokesperson for Regulatory Legal said: "We are writing on behalf of investors and their advisers to the fund administrator in the Cayman Islands to establish the correct procedures to lodge different resolutions at the EGM."
"In general terms we agree with thrust of Taylor Moor."
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