Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a397927
Integrity scandal: how Maximiser was marketed to advisers
News sponsored by:
How can I find Citywire's other websites?
You've probably noticed that New Model Adviser®, Citywire's leading website for financial planners has got a brand new look and feel. Our aim is to give you a more focused, simplified experience.
If New Model Adviser® isn't the website you’re looking for, just click on one of these options
Markets
on May 06, 2010 at 15:37
New Model Adviser® brings you an exclusive look at the IFA presentation used by Integrity Financial Solutions to promote its controversial Maximiser product range which offered advises the chance to generate tens of thousands of pounds in commission.
This presentation of over 100 slides was used in 2004 by the now liquidated IFA firm Integrity Financial Solutions to promote the 12 products in its Maximiser range. The presentation extols the 'power of leverage' and encourages IFAs to use 'lazy property equity' in clients' homes to gear up a portfolio of traded endowment policies (TEP), which it says will be the 'cream of the crop' from strong life offices.
In the event many of the policies failed to reach their target returns and service the debts taken on by investors, some of whom have now lost their homes as a result.
7 comments so far. Why not have your say?
David Dodds
May 06, 2010 at 16:10
Where is the Newcastle Building Society and RBS in all this surely they have some liabilty . Also what about the people who put the plan together like Beale Dobie .
report thisRobin Stoakley
May 06, 2010 at 16:17
Can you make clear that is is nothing whatsoever to to with the Schroder Income Maximiser fund.
report thisrichard lander
May 06, 2010 at 17:09
Robin
Thank you and yes, we are pleased to endorse your point that this article is nothing to do with the Schroder Income Maximiser fund.
Richard
report thisWatching with interest
May 06, 2010 at 19:33
RBS are not involved but Bank of Scotland Corporate Banking are. Go to slide 9 and you can see the logos clearly displayed, encouraging the IFAs to describe the product as having the " backing of BoS" .
Go to slide 25 and the loan is " the engine of the product "
B o S maintain they only lent the money,
Without the loan the product could not be sold, so yes they have liability, it's just a matter of getting them to recognise it.
report thisSimon Kershaw
May 07, 2010 at 12:22
Why would any IFA with half a brain invest client monies in such stupid fluff?
In 2004?
How can the compliance officer(s) of such firms EVER have signed off on leveraged investment?
Which idiot at NBS signed off on the mortgage deal?
Which idiot at BoS signed off on the "bond leverage" deal? Actually I think I know the answer to this as it was a widely touted "opportunity" in 2003.
Stupid bloody industry will destroy itself.
report thisJohn Stirling
May 10, 2010 at 15:24
Slide 23. It's the credit crunch all over again.
Why was this so difficult to foresee for the 'great and the good'?
I've lost the will to live at slide 80 or so - how did this survive for more than one presentation - surely stuff like this was outlawed as a presentational style in the 90's.
We ought to have a 'name and shame' site for people who peddle this crap, to stop it from tarnishing us any more.
Citywire did an excellent job with a certain offshore 'low risk' private equity offering - perhaps they could start a more general campaign so that this sort of rubbish could be caught BEFORE it costs the rest of us a tonne of levy.
report thisPaul Nedas
Jun 30, 2011 at 06:17
I am still waiting for an advisor to accept my challenge - attempt to justify why you recommended Integrity Maximiser Plans to your clients.
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.