Tag archives for Nordea Bank SA.

Rothschild: we never provided financial advice

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One of the many excuses Rothschild put forward to excuse themselves of any wrongoing (and they have a case ready of excuses, just in case!) was that, when shamefully selling the nefarious CreditSelect loan (the mortgage loan which should not be seen as one thanks to “Rothschild conservative approach”), they never provided financial advice. 

The reality is different: Rothschild not only provided tons of financial advice (abundancy of literature proves this), they actually selected the funds where the monies were to be invested in and there was no compromising in this.

For the pensioners, there was no reason to distrust their set up, as they put it:

Thanks to Rothschild’s conservative approach, clients will not be exposed to unnecesary risks

Mike Atherton has a very interesting column in the Money Section of The Times and very much line with the above, wrote an article yesterday (2/2/2013) titled When advice is not advice.

 

One of my Times Money colleagues recently sat in on a consultation her mother had with a mortgage expert. Strictly speaking, the expert was not offering advice but “information” about mortgages. However, as the conversation ranged over different mortgage products and her mother’s available options, my colleague could not help feeling that, whatever the official label, this felt more like advice than simple information.

 

This blurring of the distinction between information and advice is not confined to the mortgage market. The entire financial services industry is full of grey areas where consumers may think they are receiving one thing, when in fact what they are officially being given is something rather different.

 

The problem is especially acute in the investment world. Over the past 20 years a range of execution-only intermediaries, including discount brokers and investment platforms, has sprung up to offer investors a vast amount of information and research, but not advice.

 

They are competing for business with financial advisers, who, as the name implies, do give advice, as well as offering access to research and financial data.

 

So you have advisers on the one hand and intermediaries on the other, both helping investors with their investment choices and both offering them the benefits of their research and analysis. Investors could be forgiven for failing to spot the difference.

 

But the distinction is important because investors should be crystal clear about whether they are receiving financial advice or not. If they mistakenly think they are, they could be lulled into a false sense of security about the appropriateness of the product they are buying.

 

Some financial advisers suspect that their execution-only only rivals have not exactly been unhappy about the blurring of distinctions. The more cynical point to the many cases where intermediaries have drawn up lists of their preferred funds, or produced glossy booklets highlighting a small number of carefully selected funds, while making no mention of the rest.

 

What, the cynics ask, does this represent, if not a recommendation to buy certain funds and ignore others? The intermediaries would respond that they always issue a clear disclaimer that none of the information they provide should be construed as amounting to a recommendation or advice. But the cynics say that if it looks like advice, sounds like advice and feels like advice, investors are going to consider that it is advice.

Does anyone still believe today that Rothschild did not provided financial advice?

How much longer can they persist in pursuing this grand larceny?

 

Nordea Bank Luxembourg Equity Release Solution for Those Affected by Spanish Tax…

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Nordea Bank Luxembourg has persistently excused itself from any wrongdoing by stating that, although they do not confirm nor deny that abundant Equity Release advertising misrepresents the truth, “…ultimately, it was the choice of the consumer to rely on the representations made, or not, having been previously warned that they should seek independent advice.”

This is like British Airways or P&O Ferries saying that, although they promise that they will carry a British family safely from Spain to England, the ultimate choice of travelling with them lies with the consumer and therefore, if the plane falls out of the sky over San Sebastian or the ferry sinks in the Gulf of Biscay, there is no such thing as compensable lack of air or seaworthiness because you should have brought in your mechanic to look out for faulty turbines or pistons, rusty rivets, low oil levels etc.

Or that if go to McDonalds and the meat tucked into your burger you thought was beef just happens to belong to a rodent, there is clearly no responsibility on their part because “ultimately it was your decision to attend the fast-food chain, or not”.

So it is the ever-widening gap between who they really are and who they wished they were that is forcing Nordea Luxembourg to resort to self-deceptive excuses to carry on.

And baffling as it may be, whilst they avidly foreclose on victims’ properties throughout the Spanish geography with Nordic efficiency after cheating them, Nordea Office Luxembourg is still offering a second to none tax-evasion booklet to British expats.

You are now warned: don’t leave it till the last minute and order your Nordea Luxembourg Inheritance Tax Manual for Spain today!

 

Expat equity release victims take on banks

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The directors of action group Equity Release Victims Association stand to lose their homes Photo: Larry Lilac / Alamy

Tempted by the offer of a salary for life and an inheritance tax reduction, organisers of Equity Release Victims Association, Ian Sherdley, 69, and Euan Armstrong, 73, used their Spanish holiday homes as collateral to buy into the equity release schemes.

The schemes were sold by independent financial advisors working the expat communities along the Costa del Sol on behalf of Denmark’s biggest bank Danske Bank and Nordea Bank SA.

They were told that if they took out full mortgages against the value of their Andalucian homes, which were fully paid for, and then gave the money to the bank to invest, their inheritance tax liability would be reduced and they’d receive a small lump sum, as well as a monthly return on the bank’s investment which would cover the cost of the remortgage and provide a small salary.

Mr Sherdley, from Lancashire, and Mr Armstrong, from Scotland, followed the advice only to be later told by their Nordic Banks that the investments had gone badly, the remortgaged money had been lost and their homes suddenly belonged to the banks.

It is thought that there could be hundred of expats in similar positions across Spain and France.

A Spanish court has so far suspended Danske Banks’ foreclosure and repossession order, while a decision as to how the cases will proceed is expected in the near future.

According to Mr Armstrong’s lawyer, Antonio Flores from Lawbird Legal Services, the schemes were mis-sold, bearing in mind it is illegal to knowingly indebt yourself in order to reduce your inheritance tax liability.

He said: “We want to find out exactly how many of the schemes were sold, to who, and on what basis.

“As far as I can gather, retired expats were targeted because they had paid off their mortgages, so could use them as collateral and would be tempted by talk of reduced inheritance tax liability.”

Mr Armstrong added: “We encourage everyone who, like us has been sold one of these schemes to get in touch.

“Do not lie down and take this. These banks are making billions every year with your money.”

A spokesman for Nordea bank said: “We can’t comment, but we can say is that Nordea runs its business in compliance with local laws.”

A spokesman for Danske Bank said: “According to the law we cannot comment on individual customer cases nor questions related to individual customer cases. We have no comment.”

If you have a story to tell about equity release, please contact sean.o’hare@telegraph.co.uk.

Originally published on http://www.telegraph.co.uk/property/expatproperty/8759583/Expat-equity-release-victims-take-on-banks.html.

Expats in Spain battle the banks

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UNITED: Euan Armstrong and Ian Sherdley have joined forces against the banks

Euan Armstrong, who the Olive Press reported is taking Danske Bank to court after it convinced him to use his two million euro Malaga home as collateral, has now teamed up with fellow expat Ian Sherdley, 69, to form the Equity Release Victims Association.
“We are forming an association to prevent these banks from robbing expats of their property by offering a pile of cash as part of an investment plan,” explained Armstrong, 73, who lives in Marbella.
“Equity release is not safe and a loan against the property with the idea of hiding the money in an offshore account or removing the money from the value of the property is certainly illegal in Spain.”
Sherdley, 69, from Lancashire, who is involved in similar scheme with Nordea Bank SA, added: “These banks are just trying to fill their coffers. So now we are working on getting a legal voice to pursue them through the criminal courts.”
The pair are being backed in their venture by lawyer Antonio Flores from the Marbella based firm Lawbird.
“The purpose of the association is to support people through their predicament,” Flores explained.
“Equity release is actually killing people, through such degrees of stress. Their livelihoods are being reduced and in some cases their lifespan.

“We have decided to do something.”

Now Armstrong and Sherdley are calling on other victims – believed to run into the hundreds – to stand up and fight these huge financial institutions.
“We ask everybody to join us who has or is suffering a similar rape and pillage from a Scandinavian Bank,” said Armstrong.
“Do not lie down but stand up and fight them.
“These banks are making billions of euros every year and stealing your money.”
When questioned both banks said they were unable to comment on individual cases.

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