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Dave1 - I have answered fully the points raised and KCC were no more negligent than the Audit Commission.
Perhaps I was negligent myself because I did not antiicipate sovereign bonds achieving 45% growth in 2008 and failed to move all my clients money into them at the beginning of 2008.... There is a bit of admission for you. Of course it is with 100% hindsight and I would have needed to shift it all out again in January 2009 into corporate bonds and a year later into small cap equities....more 100% hindsight. Also it would have needed to be done without any regard to to risk profile and objectives of individual clients so I would have been negligent and incompetent if I did that anyway.
It is all complete rubbish of course. I am always amazed by how wise people are on financial matters after the event.
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