The tax exile millionaires who fund the Tory Party

Pounds

FOUR filthy-rich tax exiles and hedge fund managers are part of a shadowy cabal of multi-millionaire donors to the Conservative Party.

Their millions are the life blood behind the Tories and directs their fiscal policy to protect the super-rich at the expense of the rest of us.

And their millions are behind Mrs May’s snap General Election campaign.

In the 10 years to November 2016, the Tory Party received a staggering £247,426,722 in personal donations from some of the richest people in the world.

Top of these was a single donation of £2,990,582 in November 2001 from tax exile Lord Irvine Laidlaw.

Hedge fund manager Sir Michael Hintze was a short way behind with a donation of £1,503,500 in March 2014 and fellow hedge fund manager Sir Stanley Fink gave £1,080,500 in February 2009.

But they were all outdone by another tax exile David Rowland whose four single donations in 2009-10 totalled a staggering £3,774,000.

Small wonder that the Tories do not want regulation of the financial sector.

These figures only include those submitted to the Electoral Commission. We have no way of knowing whether these millionaires may or may not have also donated through other associated companies or agencies.

And until the Electoral Commission’s year-end figures are published, we have no way of knowing just how much they have donated this year.

Lord Irvine Laidlaw is a former Conservative member of the House of Lords and has long been one of the largest financial backers of the Tory Party.

Laidlaw was made a life peer as Baron Laidlaw of Rothiemay in 2004.

In 2008 he was described by The Guardian as a “Monaco-based tax exile”.

He was widely criticised in the press for failing to become UK tax resident despite being appointed to the House of Lords.

The BBC said that, in a letter seen by them, Laidlaw “cites a variety of personal reasons” for non-compliance.

Criticism by Baron Dennis Stevenson, chair of the House of Lords Appointments Commission, on assurances given to the Commission by Laidlaw to become a UK tax resident by April 2004, were followed by Laidlaw taking leave of absence from the House of Lords.

In 2010 following the enactment of the Constitutional Reform and Governance Act 2010 he stepped down from his seat in the House of Lords to maintain his non-domiciled status and so be able to avoid paying UK residents’ taxes.

Sir Michael Hintze is a British-Australian businessman, steeped in the financial services industry having worked for Credit Suisse and Goldman Sachs.

In 1999 he launched his own hedge fund company, CQS and has been cited as one of the highest paid people in the City of London.

In 2013, Hintze’s CQS received awards for the “Best Hedge Fund Manager Overall,” “Best Hedge Fund Manager in Credit,” and “Best Multi-Hedge Fund Manager” at the Financial News Awards for Excellence in Institutional Hedge Fund Management.

In 2006, at the time of the Cash for Peerages allegations Hintze voluntarily revealed he was one of the previously anonymous patrons who had made loans to the Conservative Party.

His known loans and donations to the party total around £4million.

In the five months to September 2011 he donated £31,000, enough to grant him membership of the Conservative Treasurers’ Group, the second highest rung on the party’s donor’s ladder, which allows its members access to senior Conservative figures through a series of lunches, receptions and campaign launches.

In October 2011, it was revealed that Adam Werritty, a close friend and business associate of then Secretary of State for Defence Dr Liam Fox MP, was provided with a free desk by Hintze at CQS’s London base as part of his £29,000 donation to Fox’s charity Atlantic Bridge.

Hintze also supplied a private jet for Fox and Werritty to fly from the United States to London in May 2011.

These disclosures led to the resignation of Liam Fox and the dismissal of Hintze’s then-charity adviser, Oliver Hylton

Sir Stanley Fink is another hedge fund manager and the former CEO and deputy chairman of the Man Group.

He has been described as the “godfather” of the UK hedge fund industry and has been credited with building the Man Group up to its current status as a FTSE 100 company and the largest listed hedge fund company in the world.

In September 2008, he came out of retirement to act as the chief executive of International Standard Asset Management (ISAM) in a partnership with Lord Levy.

In January 2009 he was appointed co-treasurer of the Conservative Party.

On 18 January 2011, he was made a life peer, taking the title of Baron Fink of Northwood.

After the resignation of Peter Cruddas over a cash-for-access controversy, Lord Fink returned to the position of treasurer of the Conservative Party. Fink previously donated £2.62milllion to the Tories.

In February 2015 Fink was accused by Labour leader Ed Miliband as having undertaken “tax avoidance activities”.

He responded by stating that he had indeed avoided tax but stated “everyone does tax avoidance at some level”.

David Rowland is a UK property developer who has made a fortune in banking.

In 2009, Kaupthing Bank, affected by the global liquidity squeeze was divided into two entities, a ‘good, healthy’ bank and a ‘bad’ bank.

David Rowland and his son Jonathan, via their investment company Blackfish Capital, acquired and recapitalized the former and now manage the assets, on behalf of the interbank creditors, of the latter.

In the year before the 2010 General Election, Rowland donated £2.8million to the Conservative Party, making him the party’s major donor.

In 2010 he was announced as being the next Treasurer of the Conservative Party.

But following public criticism of his former status as a tax exile, Rowland resigned before taking the position.

Rowland had lived in Guernsey, but returned to full United Kingdom residency in order to make more donations to the Conservatives.

But these four millionaire donors are just the tip of a much darker side of the financing of the Conservative Party.

The Conservative Party’s close links with the hedge fund industry, coincides with research which shows that around half of the wealthiest fund managers in Britain have given money to the Tory party.

The based on public disclosures, finds that of the 59 wealthiest asset managers, 27 had made a combined £19million in donations to the Conservatives, with £10million flowing into Tory coffers since the 2010 general election alone.

Labour has previously drawn attention to the government’s abolition in 2013 of a stamp duty reserve tax on investment funds, which it described as an effective £145million “hedge fund tax cut”.

Labour claimed the hedge fund loophole had cost the country £100million a year over a five year period, and others have put the figure higher.

A similar analysis in the Financial Times found that the number of City backers for the Tories doubled during the last parliament compared with the period 2005 to 2010.

The FT found that 35% of all party funding comes from eight of the top 20 donors.

The eight are all from a City background and donated £12.2million to the Conservatives.

The Conservative Party’s top 10 funders:

1 Michael Farmer

Hedge fund: RK Capital Management

Worth: £150million

Total donation: £6,556,092

2 Sir Michael Hintze

Hedge fund: CQS

Worth: £1,055million

Total donation: 3,221,027

3 Lord Fink

Hedge fund: ISAM

Worth: £130million

Total donation: £3,172,007

4 Chris Rokos

Hedge fund: Brevan Howard

Worth: £230million

Total donation: £1,344,850

5 Andrew Law

Hedge fund: Caxton Associates

Worth: £350million

Total donation: £1,226,411

6 Sir Paul Ruddock

Hedge fund: Lansdowne Partners

Worth: £300million

Total donation: £818,783

7 David Harding

Hedge fund: Winton Capital

Worth: £750million

Total donation: £593,765

8 Hugh Sloane

Hedge fund: Sloane Robinson

Worth: £185million

Total donation: £533,500

9 Sir John and Peter Beckwith

Hedge fund: RiverCrest Capital

Worth: £350million

Total donation: £520,996

10 Alexander Knaster

Hedge fund: Pamplona Capital Management

Worth: £1,266million

Total donation: £400,000

 

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Ark Academy Trust – a cabal of millionaire hedge fund managers

THE Ark Academy Trust is a money-making venture run by multi-millionaire off-shore hedge fund managers.

Nationally it had an income of £21.9 million and assets of £31.3 million in the year ending August 2015 – the last year for which full accounts are available.

Its income and assets are increasing by about £2.5 million a year.

The group started 10 years ago with just one school at Burlington Danes in London – now it is a corporate monster, swallowing schools across the country.

Ark currently runs a network of 35 schools in the UK, in Birmingham, Hastings, London and Portsmouth. And it is now branching out to take over schools in India.

Why?

These are the eight people behind Ark Academy Trust… its Board of Trustees.

Philanthropists or money-makers?

 

Ian Gerald Patrick Wace – Chairman

Ian Wace is a financier and co-founder of Marshall Wace Asset Management, a London-based hedge fund.

Marshall Wace is one of Europe’s leading hedge fund institutions with circa £8billion under management. Marshall Wace Asset Management manages the award winning Eureka Fund, and Europe’s largest TMT hedge fund Eureka Interactive.

In addition, Eureka Strategic Partners provides seed capital and expertise for the launching of new hedge fund managers.

Wace was formerly global head of Equity and Derivative Trading at Deutsche Morgan Grenfell. Prior to joining Deutsche Morgan Grenfell in 1995, he worked for 11 years at SG Warburg, where he became, at the age of 25, the youngest ever director.

In 1988, he was appointed head of European Equity Sales and, in 1993, head of Proprietary Trading and in 1994 head of International Trading.

He has an estimated personal fortune of £200million.

Michael Sandall – Secretary

Micky Sandall is a well-heeled finance director based in Tunbridge Wells, Kent. He joined Ark in March 2009. Prior to this he was Finance Director of the Royal Society of Medicine. He has nearly 20 years of experience in the telecommunications industry and was Finance Director for the Caribbean and Middle East regions of Cable and Wireless.

Sandall is involved as a finance director or secretary for nine other companies, including Ark Masters Advisers Ltd and Ark (South Africa) Limited

Paul Fraser Dunning

Paul Dunning is the Chief Executive Officer at Financial Risk Management and self-proclaimed Investment Manager. He joined the firm in 2005 from HSBC Republic Investments where he was also the Chief Executive Officer.

Dunning has also served as the CEO of Goldman Sachs Asset Management International.

He was a part of the team that launched the Goldman Sachs Global Currency Fund and has held senior positions for Midland Bank, Finsbury Capital Advisers, and Chemical Bank.

He is Trustee at HFSB and an affiliation with the Hedge Fund Standards Board.

Lord Stanley Fink

Baron Fink is a former hedge fund manager, the former CEO and deputy chairman of the Man Group. He currently describes himself as an Asset Manager.

He served as the Chief Executive Officer of the Man Group, a hedge fund, from 2000 to 2007.

He has been described as the “godfather” of the UK hedge fund industry and has been credited with building the Man Group up to its current status as a FTSE 100 company and the largest listed hedge fund company in the world.

In September 2008, he came out of retirement to act as the chief executive of International Standard Asset Management (ISAM) in a partnership with Lord Levy.

In January 2009 he was appointed co-treasurer of the Conservative Party.

On 18 January 2011, he was made a life peer, taking the title of Baron Fink of Northwood.

After the resignation of Peter Cruddas over a cash-for-access controversy, Lord Fink returned to the position of treasurer of the Conservative Party.

Fink previously donated £2.62million to the Conservative Party.

In February 2015 Fink was accused by Labour leader Ed Miliband as having undertaken “tax avoidance activities”.

Kevin Roy Gundle

Kevin Gundle is a founding member of Aurum Fund Management.and CEO of Aurum Funds Limited and Aurum Research, the research arm of the Aurum Group.

He is also a director of several of Aurum’s Bermuda and Irish listed offshore funds.

Gundle oversees Aurum Research Limited’s research, risk and investment processes.

In 2014 he was recognised by Hedge Funds Review with a “Lifetime Achievement” award at the European Fund of Hedge Funds Awards.

Paul Roderick Marshall

Paul Marshall is chairman and chief investment officer of Marshall Wace, one of Europe’s leading hedge fund groups. He proudly describes himself as a Hedge Fund Manager.

He is also chairman and trustee of the Education Policy Institute, an independent research institute focusing on educational outcomes.

He received a knighthood for services to education in 2016. He was previously lead non-executive board member at the Department for Education.

Funds managed by Marshall Wace have won multiple investment awards and the company has become one of the world’s leading managers of equity long/short strategies.

Marshall had a longstanding involvement with Britain’s Liberal Democrats Party. He stood for Parliament for the SDP/Liberal Alliance in Fulham in 1987.

But he left the Liberal Democrats in 2015 over their policies on the EU and their support of continuing British membership. He was a public supporter of Brexit during the referendum campaign.

Anthony Geraint Williams

Anthony Williams is a partner in Bluefield and the chairman of Bluefield Partners.

He is a financial risk management specialist and describes himself as an Asset Manager.

He was formerly a partner and managing director at Goldman Sachs where he worked for over 10 years.

During his time at Goldman Sachs, he was responsible for building the firm’s Fixed Income Arbitrage and Swaps businesses. In addition to his positions as global head of Fixed Income Arbitrage and Global co-head of Swaps, during his tenure Anthony took responsibility for managing risk across the firm’s global Fixed Income, Currency and Commodities trading activities as chairman of the Risk Committee for the Fixed Income, Currency and Commodities Division.

In addition to his positions as global co-head Swaps, global head of FICC Risk and Global Head of Fixed Income Arbitrage he took responsibility for managing risk across the firm’s global Fixed Income, currency and commodities trading activities.

Jennifer Moses

Jennifer Moses is an education investor, former managing director of Goldman Sachs and former adviser to Prime Minister Gordon Brown after being CEO of the think tank, Centreforum.

She now lives in San Francisco where she is a partner in Ed-Mentor, a VC firm that invests in education technology.

In 2009 she and her partner Ron Beller, the former chief of now-collapsed hedge fund Peloton Partners, sold their London home for £10.75million in order to relocate to the USA.

Beller and Moses are bigwigs on the finance and charity circuits.

Last June the Department for Education announced that Amanda Spielman, the chairwoman of Ofqual, would be replacing Sir Michael Wilshaw as Chief Inspector of Schools. 

Spielman has never been a teacher; her background is in corporate finance and management consultancy.

She is closely associated with the Ark Academy Trust.

And her appointment as Chief Inspector of Schools, highlights everything that is wrong with political plans to privatise our state education system.

The chairman of the Ark Schools board, Paul Marshall is the co-founder, with Ian Wace – chair of Ark’s global board – of Marshall Wace Asset Management, a big hedge fund.

Of the eight trustees of Ark Academy Trust, five are hedge fund managers – the other three have made huge amounts of money from hedge funds and city investments.  None have any background in education.

Ark is by far the most successful and influential MAT, a ‘system leader trust’ that is constantly name-checked by ministers.

If the story of the market-driven reform of public education in the USA and England.

Ark uses education methods developed by American charter schools – more specifically, by the ‘charter management organisation’ known as KIPP (Knowledge Is Power Program).

Ark’s brand of ‘high quality inner city education’ is copied wholesale from KIPP.

Charter schools, publicly-funded but privately controlled, have been instrumental in the growing marketisation and privatisation of American public education since the 1990s.

KIPP was established in 1994 and supported by philanthropists like Don and Doris Fisher, the founders of Gap clothes.  It now runs 183 schools in 20 states.  The schools are typically in inner city areas, serving ‘urban minority’ children.

KIPP developed a distinctive educational model, which has become known as ‘no excuses’ schooling.

Its main features are:  an extended school day, week, and year; an intensive focus on literacy and numeracy, at the expense of other areas of the curriculum; a standardised teaching method based on direct instruction and drilling, rather than interaction between students; a highly standardised curriculum, with ‘scripted’ lessons that are tightly focused on specific test and exam content; and micromanagement of students’ behaviour, using rigidly-applied systems of positive and negative reinforcement.

This model is geared towards a single aim:  maximizing test scores while controlling costs.

The most dynamic sector of the global schools business is education technology.  The accountability systems that are reshaping public education in England and the USA are also creating new markets for tech and software companies.

The most important of these markets is, of course in testing and assessments.  Last year, the US testing industry was worth around $2.5 billion, having grown by 53% in just three years. And the business of testing is increasingly automated.

Here in England, the government’s latest test – the ‘multiplication tables check’ for 11-year-olds – is entirely on-screen. The DfE claims that the new test is ‘an exciting opportunity to explore further ways of reducing burdens on teachers through innovative use of technology in testing and assessment’.

Ark is currently developing its own data management service. Last January, the trust launched Assembly, ‘a secure cloud-based platform that connects existing school data systems’.

Ark has also been experimenting with computer-based instruction.  In 2018, the trust plans to open the Pioneer Academy, ‘a new all-through blended learning school with an emphasis on technology’.

According to the proposal submitted to the DfE, blended learning is ‘the combination of traditional class-room based teaching with online learning’.

Ark has always had tight political connections.

Paul Marshall, who last year stepped down from the DfE’s non-executive board, is a big Lib Dem donor;  he was co-editor, with David Laws, of the Orange Book, and an adviser to Nick Clegg during the Coalition (Laws, once a schools minister, recently took a job with Ark).

Lord Fink, the previous chairman of Ark Schools, is a former treasurer of the Conservative Party.

Baroness Sally Morgan, the one-time Blair aide who was chairwoman of Ofsted from 2011 to 2014, has been an adviser to the Ark board since 2005.

Sir Michael Wilshaw was Ark’s Director of Education when he was appointed Chief Inspector of Schools.

Ron Beller and Jennifer Moses have also been closely involved in Ark from the beginning.  Former Goldman Sachs executives, they co-founded the King Solomon Academy in 2007.

Beller remains chairman of governors at KSA, and a trustee of Ark Schools, while Moses sits on Ark’s global board.  Something of a political power couple in New Labour’s final years – Moses was briefly head of Gordon Brown’s Policy Unit on Financial Markets – the pair moved to California after the spectacular collapse of Beller’s hedge fund, Peloton Partners, in 2008.

In San Francisco they set up a new hedge fund, Branch Hill Capital, and ‘a new charter school organisation that will leverage technology in the classroom’.

The essential outlines of the model are clear: a lot of computer-based instruction, fewer qualified teachers and more unqualified assistants. In the same year that they set up Caliber Schools, Beller and Moses founded Ed-Mentor LLC, a venture capital firm specialising in educational technology companies.

Suggested further reading:

http://www.bbc.co.uk/news/uk-politics-37432666

http://www.standard.co.uk/business/stanley-fink-tory-treasurer-hedge-fund-manager-and-charity-giver-6468533.html

 

The brotherhood of hedge fund millionaires who fund the Conservative Party

FOUR filthy-rich tax exiles and hedge fund managers are part of a shadowy cabal of multi-millionaire donors to the Conservative Party.

Their millions are the life blood which keeps Theresa May’s government in power and directs their fiscal policy to protect the super rich.

In the past 10 years (since 1 October 2006) the Tory Party has received a staggering £247,426,722 in personal donations from some of the richest people in the world.

Top of these was a single donation of £2,990,582 in November 2001 from tax exile Lord Irvine Laidlaw.

Hedge fund manager Sir Michael Hintze was a short way behind with a donation of £1,503,500 in March 2014 and fellow hedge fund manager Sir Stanley Fink gave £1,080,500 in February 2009.

But they were all outdone by another tax exile David Rowland whose four single donations in 2009-10 totalled a staggering £3,774,000.

Small wonder that the Tories do not want regulation of the financial sector.

These figures only include those submitted to the Electoral Commission. We have no way of knowing whether these millionaires may or may not have also donated through other associated companies or agencies.

Lord Irvine Laidlaw is a former Conservative member of the House of Lords and has long been one of the largest financial backers of the Tory Party.

Laidlaw was made a life peer as Baron Laidlaw of Rothiemay in 2004.

In 2008 he was described by The Guardian as a “Monaco-based tax exile”.

He was widely criticised in the press for failing to become UK tax resident despite being appointed to the House of Lords.

The BBC said that, in a letter seen by them, Laidlaw “cites a variety of personal reasons” for non-compliance.

Criticism by Baron Dennis Stevenson, chair of the House of Lords Appointments Commission, on assurances given to the Commission by Laidlaw to become a UK tax resident by April 2004, were followed by Laidlaw taking leave of absence from the House of Lords.

In 2010 following the enactment of the Constitutional Reform and Governance Act 2010 he stepped down from his seat in the House of Lords to maintain his non-domiciled status and so be able to avoid paying UK residents’ taxes.

Sir Michael Hintze is a British-Australian businessman, steeped in the financial services industry having worked for Credit Suisse and Goldman Sachs.

In 1999 he launched his own hedge fund company, CQS and has been cited as one of the highest paid people in the City of London.

In 2013, Hintze’s CQS received awards for the “Best Hedge Fund Manager Overall,” “Best Hedge Fund Manager in Credit,” and “Best Multi-Hedge Fund Manager” at the Financial News Awards for Excellence in Institutional Hedge Fund Management.

In 2006, at the time of the Cash for Peerages allegations Hintze voluntarily revealed he was one of the previously anonymous patrons who had made loans to the Conservative Party.

His known loans and donations to the party total around £4 million.

In the five months to September 2011 he donated £31,000, enough to grant him membership of the Conservative Treasurers’ Group, the second highest rung on the party’s donor’s ladder, which allows its members access to senior Conservative figures through a series of lunches, receptions and campaign launches.

In October 2011, it was revealed that Adam Werritty, a close friend and business associate of then Secretary of State for Defence Dr Liam Fox MP, was provided with a free desk by Hintze at CQS’s London base as part of his £29,000 donation to Fox’s charity Atlantic Bridge.

Hintze also supplied a private jet for Fox and Werritty to fly from the United States to London in May 2011.

These disclosures led to the resignation of Liam Fox and the dismissal of Hintze’s then-charity adviser, Oliver Hylton

Sir Stanley Fink is another hedge fund manager and the former CEO and deputy chairman of the Man Group.

He has been described as the “godfather” of the UK hedge fund industry and has been credited with building the Man Group up to its current status as a FTSE 100 company and the largest listed hedge fund company in the world.

In September 2008, he came out of retirement to act as the chief executive of International Standard Asset Management (ISAM) in a partnership with Lord Levy.

In January 2009 he was appointed co-treasurer of the Conservative Party.

On 18 January 2011, he was made a life peer, taking the title of Baron Fink of Northwood.

After the resignation of Peter Cruddas over a cash-for-access controversy, Lord Fink returned to the position of treasurer of the Conservative Party. Fink previously donated £2.62milllion to the Tories.

In February 2015 Fink was accused by Labour leader Ed Miliband as having undertaken “tax avoidance activities”.

He responded by stating that he had indeed avoided tax but stated “everyone does tax avoidance at some level”.

David Rowland is a UK property developer who has made a fortune in banking.

In 2009, Kaupthing Bank, affected by the global liquidity squeeze was divided into two entities, a ‘good, healthy’ bank and a ‘bad’ bank.

David Rowland and his son Jonathan, via their investment company Blackfish Capital, acquired and recapitalized the former and now manage the assets, on behalf of the interbank creditors, of the latter.

In the year before the 2010 General Election, Rowland donated £2.8million to the Conservative Party, making him the party’s major donor.

In 2010 he was announced as being the next Treasurer of the Conservative Party.

But following public criticism of his former status as a tax exile, Rowland resigned before taking the position.

Rowland had lived in Guernsey, but returned to full United Kingdom residency in order to make more donations to the Conservatives.

But these four millionaire donors are just the tip of a much darker side of the financing of the Conservative Party.

The Conservative Party’s close links with the hedge fund industry, coincides with research which shows that around half of the wealthiest fund managers in Britain have given money to the Tory party.

The based on public disclosures, finds that of the 59 wealthiest asset managers, 27 had made a combined £19million in donations to the Conservatives, with £10million flowing into Tory coffers since the 2010 general election alone.

Labour has previously drawn attention to the government’s abolition in 2013 of a stamp duty reserve tax on investment funds, which it described as an effective £145million “hedge fund tax cut”.

Labour claimed the hedge fund loophole had cost the country £100million a year over a five year period, and others have put the figure higher.

A similar analysis in the Financial Times found that the number of City backers for the Tories doubled during the last parliament compared with the period 2005 to 2010.

The FT found that 35% of all party funding comes from eight of the top 20 donors.

The eight are all from a City background and donated £12.2million to the Conservatives.

The Conservative Party’s top 10 funders:

1 Michael Farmer

Hedge fund: RK Capital Management

Worth: £150million

Total donation: £6,556,092

2 Sir Michael Hintze

Hedge fund: CQS

Worth: £1,055million

Total donation: 3,221,027

3 Lord Fink

Hedge fund: ISAM

Worth: £130million

Total donation: £3,172,007

4 Chris Rokos

Hedge fund: Brevan Howard

Worth: £230million

Total donation: £1,344,850

5 Andrew Law

Hedge fund: Caxton Associates

Worth: £350million

Total donation: £1,226,411

6 Sir Paul Ruddock

Hedge fund: Lansdowne Partners

Worth: £300million

Total donation: £818,783

7 David Harding

Hedge fund: Winton Capital

Worth: £750million

Total donation: £593,765

8 Hugh Sloane

Hedge fund: Sloane Robinson

Worth: £185million

Total donation: £533,500

9 Sir John and Peter Beckwith

Hedge fund: RiverCrest Capital

Worth: £350million

Total donation: £520,996

10 Alexander Knaster

Hedge fund: Pamplona Capital Management

Worth: £1,266million

Total donation: £400,000