Former Scottish Mortgage director accuses trust of being ‘seriously misleading’

Amar Bhide has addressed his concerns to the FCA


Former Scottish Mortgage Investment Trust director Amar Bhide has accused the company of being “seriously misleading” in its handling of his recent dispute with the board.

In a letter addressed to the Financial Conduct Authority, Bhide criticised the trust for mischaracterising his main criticism of the company in its account of the dispute, and for failing to mention his concerns over the way it had picked new board members, The Times reported today (30 May).

He argued that Scottish Mortgage’s version of events was “highly incomplete and, by virtue of its incompleteness, seriously misleading”.

Bhide departed in March following an internal row in which he highlighted “procedural violations” within the trust, clashing with chair Fiona McBain over the process of appointing new board members.

He also questioned McBain’s independence as chair, and shortly afterwards she announced her intention to step down from the role after 14 years on the trust’s board, and six years as chair.

Bhide has also criticised the trust’s underperformance, and in its recent annual results it recorded a 17% drop in net asset value, compared to a -0.9% return for its benchmark, the FTSE All-World Index.

Scottish Mortgage said the board was “entirety happy that they are in compliance with all their governance and disclosure obligations”.

See also: Scottish Mortgage bust-up and Home Reit troubles strike a sharp contrast with open-ended funds



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