Gov Drops Investment Advisors

The gov has given notice to terminate the appointment of its investment advisers, MJ Hudson Investment Advisers Limited.

An interim adviser will be appointed to ensure continuity in the short-term.

The move comes after several bad weeks for MJ Hudson, which saw the company’s auditor resigned citing ‘lost trust and confidence’ in management.

The letter of resignation from Ernst Young said: ‘We are ceasing to hold office because we have lost trust and confidence in the company’s management and those charged with governance, and in their ability, along with your finance team, to provide us with accurate and reliable information for audit.’

Its CEO has also quit in recent weeks due to ‘events of the last few months’. MH Hudson was also granted an extension to an existing loan to provide it with working capital.

It is understood that the decision of the Manx gov is not due to any issues it had with investments or the services provided by the firm to the Treasury.

Treasury Minister Dr Alex Allinson said: ‘Treasury have been monitoring the situation regarding the MJ Hudson Group plc in light of recent announcements and it is felt that the most appropriate course of action is to appoint a new investment adviser.

‘The tender process to appoint investment managers is ongoing and it would be inappropriate to comment on the detail at this time. All affected parties have been contacted to keep them informed of this decision.’