Tag archives for Strategic Asset Allocation

Strategic Asset Allocation: Nordea in Spain Trying to Wash Its Face

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Spanish online journal El Confidencial has today published an article on Nordea Strategic Asset Allocation, under the following heading:

PRESERVATION OF CAPITAL AND SUSTAINABLE RETURNS, WITH NORDEA

Sadly, little does the author know about the real predatory nature of this product, the careless and incompetent people that run it and the devious lawyers that protect it. Not to mention that, once you have been ripped-off, you will be told that Spanish regulators have no jurisdiction over Nordea activities in the country.

At ERVA, we think it is time to rename this product and have proposed the following:

  • Sourcing Assets Abroad
  • Stealing Abodes Abroad
  • Strategic Abode Allocation
  • Strategic Apartment Appropriation

Let us have your comments!

Bankia Employee Had No Knowledge of What He Sold

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An employee of a Bankia bank branch has confirmed to the Judge that he had no understanding of the financial product he was selling to a pensioner. What he did tell his client though was that Bankia would soon be topping the lists of the most important banks in Spain: as it happened, it went bust and was bailed out.

Pernille Bering, pictured below, was responsible of signing off the largest ever Equity Release tax-evading product to a Spanish property owner (circa €3 mm) when she worked for Finansbanken. Unlike the Bankia simpleton above, we resist cynicism and continue to believe that she was just not a pretty face sent overseas to charge unencumbered homes owned by pensioners with huge mortgages, but a discernibly intelligent person with a conscience.

Pernille Bering

 

But Pernille let everyone down: desperate to get ahead in her carreer but unwilling to get her hands dirty, she employed a locally based housewife, Maria Tremurici-Falter, to sell to unwarned Costa del Sol pensioners millions of Euros worth of Finansbanken Strategic Asset Allocation Revolving Credit Agreements to purchase investment grade bonds (with a rating not lower than BBB- By Standard & Poor), with a special taste for participations or constributions in non-leveraged hedge funds.

Busy with appointments with her local beauty salon to have her toenails done, Maria could still spare some time to loyally fulfil the Finansbanken Equity Release Sales Programme that consisted on the following:

– Maria would advertise on locals papers on a miraculous way to avoid the horrific consequences of Spanish IHT (thankfully, we now know that the correct word is evade).

– MarĂ­a would explain to panic-stricken pensioners that, with her recipe, they would be alright.

– Pernille would review potential customers’ income documentation (provided she could find any that is) and, the day before signing millions of Euros worth of fraudulent Strategic Asset Allocation at the Notary Office, she would fly down from Denmark for a quick afternoon sum-up meeting with the client at the NH Hotel, or Guadalpin, meetings that generally lasted 45 minutes.

– Next morning, execution-day, the client would be led to the Notary Office to crystalize the fraud.

It is believed that Finansbanken, later called SparLolland and later taken over by Jyske Bank, sold a total of 20 million worth of Equity Release in Spain.

 

Sparekassen Lolland and “Strategic Asset Allocation”

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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 “knowing people”, 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 €1,000,000, not a bad day’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 “…the valuers used are fully regulated by the Spanish authorities to carry out valuations for the lending market”.
  • 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 return…when the product was taken out.
  • And of course, were cleverer than the rest of Spanish banks by offering an “original” 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:

 “…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 illicit”

Is this not what all these banks came up with?

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