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BBC News - German property company collapses


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"To not know that if anything went belly up that I would not have any recompense, I definitely wouldn't have touched it with a bargepole, because I'm a low risk person"

Err

She skipped the part where it said "The value of investments can fall as well as rise, capital is at risk", so its obviously not her fault. 

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I thought Germany had the ideal property market?

It's British spivs/scammers pretending to be a German company

 

BBC Radio 4's You & Yours has found evidence suggesting loans were paid to director Charles Smethurst and his family. We have seen documents suggesting investor money was used to pay for fashion shows, television stations, beauty products, parties and rent.

The programme has also found evidence suggesting some investors were paid back with other investors' money.
Edited by ubuntu
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This is part of a massive ongoing pensions liberalisation crap show. 

It really is a scandal. 

It goes :

Mrs Miggins with her full pension goes to a dodgy IFA. 

Dodgy IFA says yes cash it all in 250k loads of money. 

Dodgy IFA gives it to dodgy Co. 

Dodgy Co gives a "marketing fee" to the IFA of upto 25%.

Remaining 75% held in dodgy Co bonds... Dodgy Co has no real compliance and spends cash on the directors horses etc. Goes bust. 

 

Mrs Miggins wonders where her pension is. 

 

Really nasty. Wouldn't gloat. Pension liberalisation was written by people I. E tory MPs who understand investments and assume everyone does. It's very wrong. 

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"To not know that if anything went belly up that I would not have any recompense, I definitely wouldn't have touched it with a bargepole, because I'm a low risk person"

Err

You might be forgiven for thinking that the money was directly backed by property and that there was limited risk. However, this appears to have been a ponzi scheme.

While I think that I would have been able to identify the potential risks involved, I have the advantage of working in finance and dealing with this sort of thing. But, financial literacy is so low that i find it hard to blame anyone - it's one of the reasons why there is so much conduct regulation. 

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This is part of a massive ongoing pensions liberalisation crap show. 

It really is a scandal. 

It goes :

Mrs Miggins with her full pension goes to a dodgy IFA. 

Dodgy IFA says yes cash it all in 250k loads of money. 

Dodgy IFA gives it to dodgy Co. 

Dodgy Co gives a "marketing fee" to the IFA of upto 25%.

Remaining 75% held in dodgy Co bonds... Dodgy Co has no real compliance and spends cash on the directors horses etc. Goes bust. 

 

Mrs Miggins wonders where her pension is. 

 

Really nasty. Wouldn't gloat. Pension liberalisation was written by people I. E tory MPs who understand investments and assume everyone does. It's very wrong. 

Is there such a thing as a non-dodgy IFA?

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Is there such a thing as a non-dodgy IFA?

Not that I have met. But at least the big boys just overcharge on a % for a tracker. 

Of course not enough money in Mrs Miggins 50k pension to make it worthwhile to charge 0.6% of assets for St James Place etc . So they get creative above a kebab shop and she gets done over 

 

Edited by captainb
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I thought Germany had the ideal property market?

I think in this case "German" was misused by British crooks to indicate a strong and stable property market.

 

Thats not to say Germany doesn't have it's fair share of dodgy dealer's (think Wirecard which the German authorities had no interest in investigating)

Edited by reddog
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You might be forgiven for thinking that the money was directly backed by property and that there was limited risk. However, this appears to have been a ponzi scheme.

While I think that I would have been able to identify the potential risks involved, I have the advantage of working in finance and dealing with this sort of thing. But, financial literacy is so low that i find it hard to blame anyone - it's one of the reasons why there is so much conduct regulation. 

Except it's not a regulated investment.

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