THE investors behind the complaints against fund manager Mr Tony Taylor first became aware that there might be problems at the end of May. The two investors sent letters asking Mr Taylor detailed questions about where their money was invested, and are believed to have sought to make withdrawals.
When the funds were not forthcoming, they complained to the Irish Brokers' Association (IBA) and also to the fund management group Fidelity, for which Mr Taylor was the Irish representative. They also started court proceedings for the discovery of documents relating to their investments.
The IBA is the main industry representative body and regulates its members. On receipt of the complaints, the IBA wrote to Mr Taylor and Taylor Asset Managers seeking detailed responses to the queries raised. The organisation has not received a response from Mr Taylor, who had been due to appear before its council yesterday to answer the queries.
Taking legal and public relations advice, the IBA has decided only to confirm that the complaints were made and not to make any further comment until the Department of Enterprise and Employment completes its investigation into the whole affair.
The Department appears to have been alerted to the whole affair following correspondence from Fidelity, which has now severed all links with the Taylor companies. It is also believed to have spoken to an adviser to the two investors, although the investors did not complain formally to the Department.
With a central role in regulating the sector given to it under the new investment intermediaries legislation, the Department decided for the first time to exercise its right to appoint an "authorised officer" to examine the situation.
The Department has so far made no comment on what it has found and is expected to make a full statement today. However, sources say the problems do not lie in the main operations of Taylor Asset Managers (TAM), but in clients managed personally by Mr Tony Taylor.
The Department inquiries now centre on the records of the parent company, the Taylor Group, and on Mr Taylor himself. The two directors of the group company are Mr Taylor and his wife Shirley.
It now appears that Mr Taylor managed some client funds personally, outside the TAM structure. It is not known how many clients are involved.
Three investors have court actions pending against the company and sources say that, since the issue became public earlier this week, a handful of other investors have contacted TAM and appear to have also dealt directly with Mr Taylor.
It appears that the Department's initial investigations show that investments of around £1.5 million are in question. However, the final total could be between £3 million and £5 million.
The two investors with court cases listed to go ahead next week may decide to seek an adjournment, unless they believe that Mr Taylor will return in the interim.
Mr Taylor, meanwhile, is thought to be out of the country and has not been in contact with his office since late last week. The authorised officer from the Department, accountant Mr Martin Cosgrove, has not spoken to him.
The next moves are likely to centre around the initial findings of the Departmental inquiry and its decision of what action to take in relation to TAM and the Taylor Group.
The interests of investors will clearly be paramount in its considerations. The Department has wide powers under the new legislation, which include the option of winding up any company if it feels this is in the best interests of investors.
The chief state solicitors' office was being consulted last night and a decision on what course of action to take is likely to have already been taken by senior Department officials and the Minister for Enterprise and Employment, Mr Bruton, in consultation with the Central Bank.
