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Complaint against FSA over ‘equity release’ scheme quashed
by Daniel Grote on Dec 14, 2012 at 08:41
The Complaints Commissioner has rejected an investor’s complaint over the Financial Services Authority’s (FSA) investigation into an equity release-type scheme they invested in through a Spanish IFA.
The complainant, who has not been named, alleged the product, run by the Channel Islands subsidiary of a UK-based bank, had a similar structure to an equity release scheme banned by FSA predecessor the Securities and Investment Board (SIB).
They claimed that the UK-based bank’s involvement in the product meant the FSA had a duty to uphold the SIB’s ban and force the bank to offer redress to investors.
But commissioner Anthony Holland (pictured) said that as the scheme was designed and marketed by the Channel Islands subsidiary, responsibility for supervision fell outside the FSA’s remit.
He added that the FSA had been unable to locate evidence of a previous ban by the SIB on such products.
‘Whilst it is clear that you believe the arrangement may have been unsuitable for your personal situation as I have set out above, this is a concern you should raise with either [the Spanish IFA] and/or the specific adviser who recommended the scheme to you.’
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