IFA enters liquidation after film scheme FOS rulings

In a letter dated 21 October to the firm's clients, 20Twenty Independent managing director Vince de Stefano states that "over the past year the firm has seen its income fall significantly following the loss of its advisory team and its running costs spiral", particularly professional indemnity (PI) premiums.

De Stefano - who is currently listed on the Financial Conduct Authority (FCA) register as inactive - continues: "I found myself with no alternative other than to call in liquidators."

The move follows a series of successful claims, lead by claims management firm Rebus, in March against the firm in which five investors who suffered heavy losses after being advised by 20Twenty to invest in Crossover Film Partnerships won £2.6m at the Financial Ombudsman Scheme (FOS).

The FOS ruled that the advice given by 20Twenty Independent was unsuitable and that the claimants were not aware of the level of losses they could be exposed to.

Those five investors have been paid out, however Rebus has now been advised that, before entering voluntary liquidation, 20Twenty changed PI providers several times, with each change leading to an alteration of the PI insurer's terms and conditions.

According to Rebus, a new exclusion in 20Twenty's current cover states that from 1 November 2011 to date, all film partnerships and unregulated collective investment schemes are excluded from claims - making any claims lodged during that period null and void.

When IFAonline tried to call the office number provided on De Stefano's letter for 20Twenty, it rang through to the Totus group, which Rebus asserts is a re-branded version of 20Twenty.

Totus is a previous trading name of 20Twenty, according to the FCA register.
Requests for comment about 20Twenty were passed by Totus to CMB Partners, 20Twenty's liquidators.

CMB Partners did not respond to a request for comment at the time of writing.

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• Topics
• Investment
• Regulation
• FOS
• UCIS
• film funding