The Central Bank now has control over the financial affairs of James Bowen Investment Consultants, following a High Court order yesterday. Under the ruling, all payments to the company must be made into a specific bank account and all payments out of the account above a set minimum must be approved by the bank.
Yesterday's court move was the latest development in a case which started last January, when James Bowen Investment Consultants Ltd was taken off the register of investment consultancies by the Central Bank, meaning that the firm could no longer act in this capacity.
The court was told the bank did this because of concerns that the company did not have a bond in place to protect investors and that it had provided misleading information. One area of difficulty was the level of capital which the company held. The full extent of the bank's concerns is still not clear.
In June the bank appointed officers to carry out investigations. The officers discovered evidence which appeared to indicate unauthorised investment activities by the investment company or its associate, James Bowen and Associates. Such activities would not have been allowed following the removal of the investment firm from the register in January. James Bowen and Associates was never registered as a financial intermediary.
The court confirmed directions given by the Central Bank that the companies must not act as financial advisers. The injunctions last until October, while the bank can hold control over the company's finances until December. The Central Bank will not comment on what will happen next and Mr Bowen was not available for comment yesterday evening. However clearly the Central Bank's lawyers will be examining the appropriate course of action to take in the period to mid-October.
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