You have all seen that I have given notice to Paicolex Trust Management AG that there are to cease to be the corporate trustee.
I have both the legal right to do so as well as it being my fiduciary duty as a beneficiary.
There are, of course, other matters to deal with but I want to concentrate on just one:
CONFLICT OF INTEREST
There is a most serious and grievous conflict of interest between Berwin Leighton Paisner or BLP, Paicolex and my father, or to be general, their clients as:
BLP handle taxation and legal matters for various clients, companies and wealthy individuals alike
As part of the “package”, BLP come up with a strategy that will save their clients a great deal of money. They then pass these clients onto their subsidiary, Paicolex. That alone is a CONFLICT OF INTEREST in that the are feathering their nests at the start of the transaction and when they are passed to Paicolex, as Paicolex charge fees that are eventually fed up to BLP.
The conflict of interest is that there are not necessarily giving their clients GOOD VALUE FOR MONEY and I am putting aside the illegality of the original transactions for a moment.
The next step; on going factors. Their clients are generally UK individuals or companies. Let us use my father as an example.
My father has a strong relationship with BLP that has gone back decades. What he asks for, he will get and then either he or BLP will instruct the trust officers of Paicolex what is to be done. I say instruct and not ask.
It puts the trust officers in a very difficult situation as they are forced to go along with what their masters say. That is yet another CONFLICT OF INTEREST
By BLP having Paicolex as a subsidiary, the clients of BLP are not getting the best deal, as it is a closed shop, a “whole package” if you will. If certain beneficiaries of the trusts that are created, do not like it, then that is tough.
These conflicts of interest lead to events as I am doing now, seeking to break the conflicts of interest and making it fair for all beneficiaries; in my case, my brother and I.
The Law Society and the Solicitors Regulation Authority cannot abide such conflicts of interest as both could be sued as well as the lawyers. They thus forbid such conflicts of interest but BLP and Paicolex think that they can carry on regardless.