Fundsmith’s Terry Smith sues Barclays for £220k

Terry-Smith-Fundsmith-500x320.jpgTerry Smith is suing Barclays for £220,000 for failing to transfer money, meaning he lost out on investment returns in his Fundsmith Equity fund.

Smith, who was formerly the boss of Tullett Prebon, says it took Barclays almost three years to transfer money from a company owned by him, reports The Times.

Smith says he asked Barclays in September 2012 to transfer £330,000 from his company Aethelflaed Investments that he intended to use to invest in the Fundsmith fund.

Smith says he tried to email and telephone call the bank to transfer the money but was told he had to go into the Hounslow branch to make the transfer.

A spokeswoman for Mr Smith said: “To say that the service the claimant and Terry received from Barclays Bank was atrocious is an understatement. Aethelflaed is compelled to pursue this action and looks forward to hearing the court’s decision.”

Smith calculated the difference in the unit price of the fund between September 2012 and July 2015 when he bought the fund, in which time it had risen by 166 per cent.

Barclays is fighting the case and denied it caused Smith any loss through negligence, saying Smith was “contributorily negligent in failing to make the payment order in a branch with identifications as it [Aethelflaed] was required to do”.

A spokesman for Barclays said: “We cannot comment on a matter which is currently in litigation, save to confirm that we will be vigorously defending this case.”