Members of the ERVA are to file a group action against Rothschild for misleading publicity, in respect of the Equity Release, at the provincial Mercantile Courts of location of the property affected.
Legal grounds for bringing such an action are 2, mainly:
- Deceiptful message in respect to the promised benefits of “creating a debt” on a property with the purpose of minimizing or eliminating Spanish Inheritance Tax.
- Deceiptful message in respect to the promised guarantee that the investment, which is said to be held outside of Spain (obviously to cheat the tax authorities) is guaranteed 100%.
The claim, which is to follow the same format as the Nordea Claim, is to be filed on the 20th of December 2012.
Other than that, we would not wish to miss this opportunity to briefly comment on the attached information, one of many examples of abundant tax-evading publicity that Rothschild produced.
A calm and unflustered Steve Dewsnip, a prominent Rothschild figure when the scheme was going strong on the Coasts who is currently doing other things, spoke and wrote like a Spanish Inheritance Tax expert. Far from it, the man was just clueless.
But the worse we think was the use of an unsettling word, “bespoke”, to ill-define the nature of this absolutely commoditized deceiptfully predatory product sold to pensioners, without distinction and without, of course, any semblance to the meaning of it.
How can Rothschild keep claiming that they were not involved in the sale of this equity release product but merely the lender of the funds (mortgage loan) Stephen Dewsnip the then Director NM Rothschild & Sons (CI) clearly states in paragraph 7 on page 3. “OUR” CREDIT SELECT SERIES 4 PRODUCT. He later states.”Although this idea has been around for six or seven years now, our ROTHSCHILD PRODUCT is available for properties valued in excess of 275,000 also provides income to be drawn from the profits made on the investments as well as capital release sum up front. It also mentions the fact that the capital is 100% guaranteed. Not being an educated man that seems pretty clear to me, as clear as the nose on my face. Now one would think as this product had been around for six or seven years they would have researched the tax laws a little more carefully. As we have all come to realise this has not worked, it could not have worked at conception and it cannot work in the future First of all the cost of setting this up by way of commissions legal cost and stamp duty. Now they offer a 25% capital release lets say on 300,000 euro. One is left with a pot of money of 225,000 less start up costs. Left is some 200,000 euro to be invested less 1% commission to service a loan of 300,000 euro we nhaven’t yet mentioned the taxes you will have to pay including income tax. Even in good times it simply is not possible never mind if the market crashes. Rothschild should as bankers have been aware of market forces and in any event their compliance department should have picked up on the performance of the investments and acted accordingly.