The first 2 reports drawn up by the compay Muntaudit (http://muntaudit.es/) have now been received.
One refers to Nykredit/Sydbank and the second one to Finansbanken/Sparekassen Lolland Equity Release products.
The first point that the independent firm of financial auditors has highlighted is that the product was taken out for the purpose of obtaining a tax advantage and securing an income stream. The report then notes the following:
- The contract of Equity Release was offered to pensioners as a way to improve their quality of living by providing an additional income stream (in addition to the false tax advantages).
- The contract does not clearly warn of the risks involved in the transactionÂ -interest rate risk, exchange rate risk, price risk, market risk, operational risk, lack of liquidity risk, early redemption risk (on the side of the bank)-
- It is considered to be a high-risk complex instrument.
- The contract does not include the TAE clause (in English, APR or Annual Percentage Rate)
- The ability of ever producing a result as advertised by the bank and agents, irrespective of the investor profile, is very low.
- For a low risk investor, the product has an almost 100% probability of producing a negative result from the very moment it is signed.
- The product is classified as “high-risk” and not suitable for a low risk investor.
- The client profile, highly conservative retail investor, had specific and concrete requirements and as such, had they known the type of investment they were getting into, these contractsÂ would have not been taken out.Â