Tag archives for SLM Holdings Funding Nº1

A Judge nullifies 12 equity release mortgages worth 6 million Euros

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Vista de los juzgados de Bilbao en los que se ha llevado el caso.

Source: Diario Sur

The sale was conducted through commission-driven financial advisors based in Estepona, Marbella and Fuengirola.

Court of First Instance 11 in Bilbao has ruled that twelve mortgage loans valued at 6 million Euros, granted to British families mostly in the Malaga province between 2004 and 2007, should be declared void.

The Court dealt with this case as all loans were granted at a Bilbao Notary Public and the representatives of the lender, SL Mortgage Funding nº1 Limited (SLMF), were also based in the Basque city, according to Lawbird Legal Services S.L.P.

These loans were sold to attain a reduction in potential inheritance tax, inasmuch as the mortgage would reduce the taxable value of the property, but also as a means to supplement the modest pensions received by the owners of the properties.

Chester-based SL Mortgage Funding nº1 Limited (SLMF) had not applied for the necessary regulatory permits to legally raise funds from the public and provide an investment service, activities reserved and regulated by the Bank of Spain and the CNMV (financial regulator).

In spite of not having any of the above authorizations, SLMF would lend but at the same time retain most of the proceeds of the loan, which would then be invested by them.

The ruling declares that “infringing the protocols set by the relevant administrative authority to supervise the disputed product is a regulatory violation that exceeds that of a mere breach of banking laws, such as misselling, so profusely dealt with recently in relation to the massive sale of complex financial products.”

The Judge held that in this case, the breach of public policy “is far more serious for it makes a mockery of a whole system of financial and banking supervision designed to prevent abuses to consumers and protect the stability of the sector”, and likens this behaviour “civil fraud”, which is any proposal that contravenes mandatory regulations or has a false or forbidden reason.

The sale of this product was conducted via commission-earning financial advisory firms (Hamiltons Financial Services, Henry Woods Investment Management and others), based in Estepona, Marbella and Fuengirola.

SLMF also recommended a network of lawyers that created an appearance of seriousness, downplaying the extent of the lack of licensing requirements of the bank and the product.

According to Lawbird Legal Services S.L.P., for the claimants, the ruling confirms that operating in breach of mandatory banking and financial regulations makes the suspect a “boiler room”, -even if the company was legally operating in their own country- and allows the victims to rid themselves of a nightmare lasting for over 10 years.

The Judge concludes that the nullity and voidness should be made applicable to all contracts and agreements executed between the clients and the bank, applying the laws of contractual termination in odd fashion –albeit most favourable- as clients “will be able to claim what consideration they gave under the contract without having to return was given to them.”

Other articles:

La Vanguardia

El Economista

Finanzas.com

Day In Court Against SLM and Premier Isle of Man

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On Thursday 14th July, Bilbao Courts heard the case of a number of the SITIRS (Spanish Inheritance Tax and Income Release Scheme) product against Surrenda Link and Premier Isle of Man companies.

From the victims’ part, lawyers insisted –and proved beyond doubt- on the crucial lack of regulatory clearance on not only the product, but the financial entities and the IFAs. Lawyers also proved that the inheritance tax reduction proposition was fraudulent. Our lawyers alleged that the product, called SITIRS (Spanish Inheritance Tax and Income Scheme), was a sham in every aspect. They also evidenced that lawyers appointed to act for victims were for the most part on the list of SLM appointed lawyers.

A witness who had worked for Hamilton’s attended as the hearing and confirmed that clients were approached by telephone cold-calling. The witness also advised that IHT was the main reason why this product ever existed, in the first place. When asked by the Judge if her company was registered, the witness stated that it had applied for a license but never received a reply from the CNMV.

For the part of SLM and Premier, the former argued that all risks were properly presented to the customer by signing the relevant forms. Insofar as Premier is concerned, their main allegation was that they were a different company from the one that sold the product during the 2005-2007 period.

The presiding Judge took an interest in the case beyond what is normal and tried, whether successfully or not, to understand the mechanics of this product. At one point, she argued that if this whole financial proposition was so difficult for legal people to understand, what chances did pensioners have (?).

The trial took six hours and the parties presented their oral conclusions.

The ruling will be issued any time now although, as August is a Court holiday month, it may be that we do not hear any more until September.

The Premier Balanced Fund and Surrenda Link Mortgage

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The Premier Balanced Fund was described as an “experienced investor fund”, restricting it to people capable of understanding the risks, but they needed a lender who could come up with 40 million Euros to invest in their fund.

SLM Funding Nº1 Limited won the tender process: it was selected by the Premier Group (Isle of Man) Ltd. to find those 40 million Euros, an order they carried out efficiently: Aareal Bank was convinced to pool resources, some say Rothschild too…

But there was an added element in the form of bricks and mortar: approximately 100 Spanish properties would be used as collateral to ensure that, if the investments went down, 200-odd British pensioners could be made responsible of footing the bill.

The “experienced investor fund” is now probably worth less than half and the ex- mariners, ex-policemen, house wives and other Spain-based retirees who were instilled with the Fear of God with the Spanish Inheritance Tax -and fell for the scam- have their properties, and lives, bogged down.

Perverse Nicky Flux, loyal till death to SLM, keeps sending her monthly letter out to pensioners…letters coming from a company that would disgrace any Nigerian 419 business.

Terms & Conditions

The Premier Balanced Fund plc (“the Company”) is an experienced investor fund and complies with the requirements of the Financial Supervision (Experienced Investor Fund) (Exemption) Order 1999 (the “Order”) of the Isle of Man. Shares in the Company are only available to persons sufficiently experienced to understand the risks associated with an investment in the Company and who are willing to invest more than the minimum specified in the Order.The Value of shares in the Company, and the income produced by them can fall as well as rise. Investors may not get back the value of their original investment.The Company, is not subject to any form of regulation or approval in the Isle of Man and investors are not protected by any Isle of Man statutory compensation arrangements in the event of the failure of any of them. The Isle of Man Financial Supervision Commission does not vouch for the financial soundness of the Company or for the correctness of any statements made or opinions expressed with regard to any of the same. It is the responsibility of any person/s wishing to apply for Shares in the Company to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction.

I have read and understood the above information

   

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