Following receipt of several complaints from investors in TEP Plans
purchased through Savignon Financial Services Limited (SFS), the Financial
Services Commission has conducted a preliminary investigation into the
suitability of TEP Plans for certain categories of investors and certain
aspects of compliance with relevant regulatory obligations.
Following the investigation, which was undertaken during 2003, the
Commissioner has held meetings with SFS and its legal advisers and made
clear that he expects suitable compensation to be made available in
appropriate cases for those investors who have sustained loss. SFS has
reserved its legal position, and has been conducting its own enquiry using
an external independent consultant. The Commissioner is currently awaiting a
response from SFS as to its position and hopes that such response will be
made shortly. Once received, the Commissioner will consider that response
before deciding whether further regulatory action is required. In the
meantime, the Commissioner has imposed a number of conditions upon SFS
including a requirement for the injection of new capital.