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Complaint against FSA over ‘equity release’ scheme quashed

by Daniel Grote on Dec 14, 2012 at 08:41

Complaint against FSA over ‘equity release’ scheme quashed

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.’

7 comments so far. Why not have your say?

Anitaki

Dec 14, 2012 at 09:16

Channel Islands, Spain ? ? ? > > > > But when it all goes wrong, complain to the UK regulator as there's more chance of getting "compensation" here than anywhere else

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One is afraid

Dec 14, 2012 at 09:16

Oh dear, does this mean that Trading Standards won't help me. A fake Rolex I bought in Cairo stopped working - and he told me there was a 5 year guarantee. I nearly bought it on a finance deal so I'll take it to the FSA instead

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Richard Woodwards

Dec 14, 2012 at 09:57

@ One is afraid LOL made me chuckle lots that!

So the "Mystery complainant" invested in something offshore, through a Spanish IFA and (very probably) lost money. So that's our fault how? We've all lost money at various times buying things we shouldn't have. Man up! Admit you got it wrong and live by your mistakes. Don't try and fleece some poor mug for your own shortcomings.

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martyn edwards

Dec 14, 2012 at 10:18

Really guys you should be ashamed of yourselves especially at this time of

year.

Why shouldn't this obviously poor, elderly and confused person not be entitled to a handout from the UK?

He is only asking for what other free loaders from all over the world get away with on a daily basis namely paying nothing into the system and reaping the benefits ot the UK's notoriety of being a soft touch.

Let them all in give them all they ask for and if they don't want to come in, give them an handout anyway.

Merry Christmas to everyone.

PS:- Have a prosperous new year.

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Pat Riot

Dec 14, 2012 at 11:06

What "One is afraid" seems to miss is that the FSA effectively give him the bird. Not that that matters to the more rabid anti regualtion nutters in the IFA world.

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Stephen Ng

Dec 14, 2012 at 13:15

I think the point to note here is that the 'poor investor' actually thought there was some chance he could get redress via the UK. This is the culture that has been created...that the UK is a soft touch. Well done FSA for seeing the blindingly obvious and asking the claimant to politely 'get lost'!

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Mr Man

Dec 16, 2012 at 16:59

This is very good news. I can breathe a sigh of relief that the offshore advice I give is outwith the remit of the UK FSA . The offshore market is growing and very lucrative in the global economy that politicians created and now cannot control . I bet more business will be conducted offshore with Brits than onshore in 2 years, irrespective of their actual status.

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