Spanish Equity Release Fiasco

The Spanish regulator, the CNMV, has answered a petition on information that was made about 1 month ago. From it, we can conclude that:

1. 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).
2. 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.
3. 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.
4. 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.)

Antonio Flores Uncategorized Danske Bank, Equity Release, Nykredit, Rothschild, Sydbank

The noose is closing on the necks of the infringing lenders. On a recent visit to Madrid we filed a formal application to the CNMV, the Spanish financial regulator, for information in relation to the activities of several banks and one insurance broker turned-IFA without authorization.

The DGS (Dirección General de Seguros, Spanish Insurance regulator) also received our visit and we had a mostly interesting meeting with a senior official,who advised us to file an application for information in respect to:

1. If Danske Bank and Rothschild were registered to sell insurance.
2. If the products they called as life insurance, or “assurance”, can be described as such or if, on the contrary, they are just financial products hidden behind the more benign format of insurance products for the retired.

Both regulators were not aware of the inverse-mortgage schemes, but were horrified when I explained in detail the state in which borrowers have been left.

Documents

• CNMV Information Request Regarding Banks that Offer Equity Release Produts (PDF)

Antonio Flores Uncategorized CNMV, Danske Bank, Dirección General de Seguros, Nykredit, Rothschild, Sydbank