Strategic Asset Allocation was the pompous description coined by FINANSBANKEN A/S, taken over by Sparekassen Lolloland, to encapsulate a deceitful equity release product.
The sale of this financial sham was entrusted to a lady called Maria Tremurici-Falter, a Marbella socialite that does anything from complex financial products to charity expensive dinners or â€śknowing peopleâ€ť, and Michael (Mitch) Weisz, a mortgage broker who we cannot trace. They were both given a nice kick back of 1% of the value of the contract (at a minimum contract value of â‚¬1,000,000, not a bad dayâ€™s work!).
The below points give an idea of the monstrous set up Sparekassen Lolland came up with:
- Sold to unsophisticated foreign pensioners mostly that had no need to prove an income to qualify.
- Used the services of Costa financial pirates to market and sell the product.
- Offered the generosity of 1,5 hours of advice at the Guadalpin Hotel, by Danish-based staff who flew in the day before closing; the contracts being all ready to be signed off at the local Notary office.
- Used the services of valuers that were not regulated by the Bank of Spain, in spite of which they declared, on a public deed, that â€śâ€¦the valuers used are fully regulated by the Spanish authorities to carry out valuations for the lending marketâ€ť.
- Flouted the laws applicable to investment products: lack of compliance with regulations pertaining to obligatory registration of prospectuses, informative triptych and contract with the CNMV.
- Indicated that 8% return was not an unreasonable returnâ€¦when the product was taken out.
- And of course, were cleverer than the rest of Spanish banks by offering an â€śoriginalâ€ť tax-dodging financial product that would alleviate the burden of horrible Spanish Inheritance Taxes.
Article 27 of the Unfair Competition Act (Ley 3/1991 de Competencia Desleal) states that:
Â â€śâ€¦practices that convey inexact or false information in respect of the nature or size of the danger that a user or consumer or his/her family would be faced with, should he not take out the service or product, are equally deceitful, and will be deemed illicitâ€ť
Is this not what all these banks came up with?
- 15-08-2012 –Â Sparekassen-Lolland-Reported-to-Bank-of-SpainÂ (PDF 3.5 Mbytes)