The JFSC allege that Alternate Insurance Services Ltd is not fit or proper and misled investors.
The action against the company, directors Douglas Clark and Robert Le Fustec and employee John Cronin began last year by way of an Order of Justice and is due to come to trial this autumn.
All allegations are denied.
The JFSC’s investigation follows a number of complaints about Traded Endowment Investment Portfolio Plans (TIPPs) recommended by Alternate.
In all, the Order of Justice names 28 individual investors.
A TIPP typically involves the purchase of a portfolio of traded endowment policies, usually funded partly by capital from the customer and partly by a loan in the customer’s name.
The customer is then responsible for paying the premiums to maturity.
