Folio Asset Management Ltd, Best of Index Fixed Income Fund, HSBC Trustee (Isle of Man) Ltd

Published on: 24 September 2003

This notice is issued by the Financial Supervision Commission (“the Commission”) in accordance with the powers conferred upon it under Section 22 of the Financial Supervision Act 1988.

Folio Asset Management Limited

Best of Index Fixed Income Fund

HSBC Trustee (Isle of Man) Limited

The Commission has recently become aware of correspondence purporting to originate from Folio Asset Management Limited. The correspondence claims to offer a fund, entitled “Best of Index Fixed Income Fund”, which, it claims, “guarantees your capital upon maturity” and which, it claims, offers a return of “15% to 23% per share (or higher)” over a period of 12 or 18 months.

“The Best of Fixed Income Fund” by Folio Asset Management Limited was the subject of a Public Warning issued by the Malaysian Securities Commission on 16^th July 2003. That warning may be viewed at:

http://www.sc.com.my/html/resources/press/pr_20030716.html

The correspondence seen by the Commission alleges that the “Trustee Banker & Custodian” of the above “fund” is HSBC Trustee (Isle of Man) Limited.

None of the above entities is a company incorporated within the jurisdiction of the Isle of Man. None is registered as a foreign company having established a place of business on the Isle of Man. None is registered as a business name on the Isle of Man.

None of the above entities is in any way associated or connected with the following genuine companies, which are licensed and regulated by the Commission, nor with any of their worldwide affiliates: Neither Folio Asset Management Limited nor HSBC Trustee (Isle of Man) Limited is licensed by the Financial Supervision Commission to undertake banking, investment or any other regulated business. A full list of Commission Licence holders is available on the Commission Website at:

www.fsc.gov.im/content/search_Licences.asp

The Commission has established no genuine association between either Folio Asset Management Limited or HSBC Trustee (Isle of Man) Limited and any Isle of Man companies.

The Commission has established no genuine links between either Folio Asset Management Limited or HSBC Trustee (Isle of Man) Limited and the Isle of Man.

The correspondence seen by the Commission claims that HSBC Trustee (Isle of Man) Limited is incorporated “in Panama Islands”. The Commission is aware that companies may be incorporated in the jurisdiction of Panama, however, we are unaware of a separate jurisdiction known as Panama Islands in which companies may be incorporated.

Under the circumstances, the Commission would strongly urge persons considering dealing with this entity to exercise the greatest possible caution before proceeding, bearing in mind the contents of this public notice.

Any persons who are already involved in any dealings with the above entities and have concerns should contact the Enforcement Division on +44 1624 689313 or by email to fsc@gov.im.

Any persons who have paid funds to this entity should contact their local Police Fraud Unit without delay.

FSC Reference: JPM/42/2003