Jump to content
House Price Crash Forum
Sign in to follow this  

Norwich & Peterborough Building Society Fined £1.4 Million For Mis-Selling Complex Investment Products

Recommended Posts

Grauniad report

Keydata products sold were riskier than customers were lead to believe. Still...at least the staff got a nice healthy commission.

I opened up a current account with N & P and last week I was investigating their savings products. The AER on them were lousy. However, I suppose the N & P have to recoup the fine and projected £51m compensation to it's customers from somewhere.

Share this post

Link to post
Share on other sites

I don't know what particular keydata products were involved (nor indeed what keydata products existed, apart from two VCTs, which noone would ever have sold as "low-risk").

The VCTs were utterly terrible investments. But their position was not without value: they ended up being transferred to Foresight group to salvage what value could be made of the wreck. Recently they were borged into the (original) Foresight VCT, so their investors now have shares - albeit valued at a small fraction of what they originally paid - in something better. The combination appears to work well: Keydata had a portfolio that needs servicing but were unable to raise money to service it; Foresight has the money and so can nurture the latent value of keydata.

(as a Foresight shareholder I've watched this unfold. No dividend since 2009, but a nice big capital gain makes that sacrifice look worthwhile. And now there's another possible salvage scenario unfolding as Foresight take on management of Acuity, another historic disaster area - though it's not quite the same 'cos they're not about to borg it into an existing fund).

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.