Investment Club World Wise Partners Limited said it is to close and refund clients with account balances of less than US$2,000 ($142,000) as a result of the high cost of managing accounts.

In a letter to investors last Friday, Noel Strachan, chairman of World Wise Partners Limited, said while he was aware that the closure of some accounts might affect partners' financial plans, the company had to do whatever it took to ensure its stability.

Strachan said all clients with account balances in this range would be contacted prior to the closure of their accounts, and would be given the opportunity to meet the new threshold requirement of US$5,000 ($355,000).

Meanwhile, Strachan said many partners were concerned about World Wise's bank accounts, which were to be closed by RBTT on Thursday.

Injunction extended

However, the Supreme Court last Thursday granted the company an injunction barring RBTT from closing its accounts. The injunction will remain in force for 14 days and World Wise is expected to apply to have it extended.

World Wise, which had expected that the accounts would have been closed, asked partners to submit their banking details so that funds could be wired to them upon their request.

"This is our first month processing, so many wires and so the process is slow, as our staff is getting accustomed to the new method of remitting funds. Again, I ask for your patience as we work to fund your accounts in the least possible amount of time," Strachan said in a letter, which was sent via electronic mail.

Meanwhile, the investment club told its clients that World Wise Investments had applied to the Financial Services Commission (FSC) for a security dealers licence.

"The application is being proces-sed and we hope to be regulated as soon as possible," he said.

But George Roper, executive director of the FSC, made it clear that his office had not received any application from World Wise Partners. He noted that the FSC received an application from World Wise Investments, which is a separate company operated by the same persons.

New arrangement

World Wise also indicated that it had changed the original partnership agreement and it was necessary for all partners to review the new agreement.

"If you do not agree with the new terms, then you should terminate the agreement in writing and request a refund of all your funds," said Strachan.

Roper reiterated that individuals "should think and check before they invest". He noted that they should also conduct research on the companies to determine if they were registered by the FSC.