Just a thought crossed my mind relating to how some of the financial institutions are being hit with sub-prime losses...
May seem like a stupid question, but here goes...
If a fund manager became insolvent, how are funds under management treated in the event of administration? Do creditors have any right to funds under management to recover their losses?
I've always just assumed that the units I hold in a unit trust (in theory) belong to me and that the fund manager's business activities fall outside any claim a creditor to the business can make to the assets being managed, however, I'm completely naive to how this works and can't think of a precedent to reference.
Any thoughts?
May seem like a stupid question, but here goes...
If a fund manager became insolvent, how are funds under management treated in the event of administration? Do creditors have any right to funds under management to recover their losses?
I've always just assumed that the units I hold in a unit trust (in theory) belong to me and that the fund manager's business activities fall outside any claim a creditor to the business can make to the assets being managed, however, I'm completely naive to how this works and can't think of a precedent to reference.
Any thoughts?
