CNMV responds to an initial info request
June 6th, 2011
The Spanish regulator, the CNMV, has answered a petition on information that was made about 1 month ago. From it, we can conclude that:
- Danske Bank´s Capital “Assurance” product did not get clearance to be offered to investors based in Spain. We are waiting for an answer from the Insurance regulator (DGS).
- Nykredit Realkredit is regulated in Spain and obtained clearance to offer a product labelled “Euro-denominated perpetual hybrid core capital notes”. Sydbank, with whom investors signed their contracts, is not.
- The IFA: no sign of the gentleman although he seems to have clearance to act on behalf of “Caser” Insurance, on an exclusive basis, to offer a number of insurance products. No trace of having authority to sell Danske Bank products. He certainly is not authorized to sell any financial service or product.
- Rothschild: Registered with the CNMV but need to be more specific although, since they were selling the Aspect Policy, this will be for the DGS to advise on.
- Scanned pdf of the response from spanish regulator to initial enquiry here (400 Kb.)
I am a77 man with a 75 year old wife , we were sold Equity Release by a friend who worked for OMM four years ago.Since then wit h so much worry ihave had Cancer of the colon and prostate and have since fallen and broken ny hip. I have joined a group of people in the same boat and don’t appear to be making much progress.the bank involved is Landbanki Do you think I will live long enough to get out of this mess, fortunately I still have my sense of humour, but can’t say the same for my darling wife. Sorry to trouble you , thanks in anticipation of a reply.
Dear Mr. McKendry, I sympathize with your predicament and am appalled that Landsbanki have not once and for all resolved this big mess, as you quite rightly call it. I am aware that a group of people did file an action against this bank (found out through the press) but have not since heard of any new developments. I do also know that the bank was nationalized by the Government in Iceland which, in my opinion, should mean that an effort at an official level should be also pursued.
Let us not forget that all these schemes were, after all, tax-evading vehicles that capitalized on one obsession British property owners in Spain are famed for: Spanish Inheritance Tax. It was through this fear that most of you got to purchase these deceiptful products, but then again, it was all a big lie because tax-avoidance was just not possible, unless your inheritors happened to be living in a tax-haven where IHT is not applicable. Where the financial product was sold on an insurance wrapper, then Spanish tax would have been directly applicable, pursuant to the Spanish Inheritance and Gift Tax Act, and not even by your inheritors being based on a Tax-Haven listed country would they have avoided the tax, but rather evaded.
A further bait here was the monthly “salary” for life or during of the product, which probably made up for 50% of the decision to take it up.
With the trend of recent case-law I can only see the Courts ruling in favour of claimants, and to that extent several lawyers are fighting the various banks (mostly Skandinavian, experts in wreaking “equity-release” havoc on mostly retired unencumbered property owners.
Sorry for the long delay in replying to you,but I have had another spell in Hospital, have been allowed home for the week-end and returning to hospital on Monday .I would be a liar (which I am not),if I said the Death Duty tax we were promised, was not an incentive to join, but we were much more interested in the promised extra income which would have been very helpful and instead of having spent years worrying, we could have had a more pleasant time enjoying our remaining years together.We celebrated our 50th Wedding anniversary on 10.6.11 thankfully we ca still smile and enjoy being together.