Property entrepreneur Anthony Lyons is chasing HSBC Private Bank for millions of pounds in damages.
He is one of a number of high-net-worth investors who claim that millions of pounds of their investments in US insurer AIG’s Premier Access Bond Enhanced fund, which was sold through UK private banking operations, have been lost.
It is believed that Lyons had a £20m position in the fund.
Lyons, who last month sold his remaining stake in the Earls Court and Olympia venues in west London to Capital & Counties, is claiming that HSBC Private Bank inappropriately invested his money in the £5.5bn fund only days before it was closed for redemptions.
The fund, a low-risk, instant-access investment, was frozen on 15 September 2008 after redemption requests escalated amid concern about the financial stability of AIG.
HSBC rejects the claim, arguing that Lyons has suffered no loss as he was repaid half of his investment immediately, while the remaining 50% was converted into the AIG Protected Recovery Fund, which locks away money invested in it until 2012.
However, earlier this month, AIG warned investors in the recovery fund that they were likely to see their maximum returns “greatly reduced” if interest rates remained low.
At an application by HSBC last week, a judge ordered further disclosure by Lyons of his spread-betting accounts at IG Index and ETX Capital, which HSBC may refer to at trial to demonstrate his understanding of financial risk.
However, the judge did warn that the forthcoming trial, due to begin on 15 March, should not focus on Lyons’ spreadbetting activities.
No party would comment.
