Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

German Property Company Collapses

AsleepInYorkshire
Lemon Half
Posts: 7383
Joined: February 7th, 2017, 9:36 pm
Has thanked: 10514 times
Been thanked: 4659 times

German Property Company Collapses

#360292

Postby AsleepInYorkshire » November 26th, 2020, 2:12 pm

A Reminder that Portfolio Diversification is Essential & Needs Applying Correctly
Millions of pounds of investors' pension savings have not been returned by a German property company that was promising to keep them safe, a BBC investigation has revealed.

Another case of "if it looks too good to be true?"

AiY

Alaric
Lemon Half
Posts: 6033
Joined: November 5th, 2016, 9:05 am
Has thanked: 20 times
Been thanked: 1399 times

Re: German Property Company Collapses

#360293

Postby Alaric » November 26th, 2020, 2:18 pm

AsleepInYorkshire wrote:Another case of "if it looks too good to be true?"


It's also a weakness in prudential supervision. There don't appear to be sufficient controls on where pension money can be invested. This is in a regulatory environment that more or less prohibits UK private investors from investing in US based ETFs.

ReformedCharacter
Lemon Quarter
Posts: 3120
Joined: November 4th, 2016, 11:12 am
Has thanked: 3590 times
Been thanked: 1509 times

Re: German Property Company Collapses

#360296

Postby ReformedCharacter » November 26th, 2020, 2:26 pm

I've been helping a friend who got taken for a ride by an IFA. Unfortunately he ended up with 'investments' in Store First storage pods, a Panamanian timber scam and Dolphin. There's currently a creditor's association trying to get some recompense for those unfortunate folk who put money into Dolphin:

https://www.german-property-group-creditors.co.uk/

The IFA went into bankruptcy shortly after I got involved trying to help my friend. The IFA still has his nice house and smart car. Another reason why I wouldn't touch an IFA with a bargepole.

RC

bungeejumper
Lemon Half
Posts: 8064
Joined: November 8th, 2016, 2:30 pm
Has thanked: 2846 times
Been thanked: 3938 times

Re: German Property Company Collapses

#381919

Postby bungeejumper » January 29th, 2021, 1:59 pm

Oh indeed. Right now, I've got an IFA telling me that I should put my "ultra-safety ring fenced" money (my description) into a so-called balanced fund that has a 60% weighting in bonds and a 25% weighting in whizzy US tech and banking stocks. I don't know which of those two is set to crash and burn faster, frankly? I've told her I'd rather stay in cash until things settle down a bit, and she makes a face like Priti Patel. I am now looking for a new IFA.

But our very good friends were properly fleeced by an adviser who put them deeply into a Japanese recovery fund. In the 1990s..... :o They lost a helluva lot. He then told them to buy a precipice bond that would forfeit half their money if five major Eurozone banks should see a 20% fall in their share prices at any time within the next five years. And they asked me whether they should go for it, and I told them to go out and buy the biggest bargepole they could find. The year was 2008. ;)

The advisor closed down his business when the RDR professional regulations came in in 2012, and he was last heard of sunning himself in Florida.

BJ

AsleepInYorkshire
Lemon Half
Posts: 7383
Joined: February 7th, 2017, 9:36 pm
Has thanked: 10514 times
Been thanked: 4659 times

Re: German Property Company Collapses

#381922

Postby AsleepInYorkshire » January 29th, 2021, 2:01 pm

bungeejumper wrote:Oh indeed. Right now, I've got an IFA telling me that I should put my "ultra-safety ring fenced" money (my description) into a so-called balanced fund that has a 60% weighting in bonds and a 25% weighting in whizzy US tech and banking stocks. I don't know which of those two is set to crash and burn faster, frankly? I've told her I'd rather stay in cash until things settle down a bit, and she makes a face like Priti Patel. I am now looking for a new IFA.

But our very good friends were properly fleeced by an adviser who put them deeply into a Japanese recovery fund. In the 1990s..... :o They lost a helluva lot. He then told them to buy a precipice bond that would forfeit half their money if five major Eurozone banks should see a 20% fall in their share prices at any time within the next five years. And they asked me whether they should go for it, and I told them to go out and buy the biggest bargepole they could find. The year was 2008. ;)

The advisor closed down his business when the RDR professional regulations came in in 2012, and he was last heard of sunning himself in Florida.

BJ

I think we all have differing risk reward ratio's but some people do seem to completely ignore risk. I suspect they simply say to themselves it won't happen to me and that's the extent of their risk mitigation strategy

AiY

bungeejumper
Lemon Half
Posts: 8064
Joined: November 8th, 2016, 2:30 pm
Has thanked: 2846 times
Been thanked: 3938 times

Re: German Property Company Collapses

#381926

Postby bungeejumper » January 29th, 2021, 2:08 pm

AsleepInYorkshire wrote:I think we all have differing risk reward ratio's but some people do seem to completely ignore risk. I suspect they simply say to themselves it won't happen to me and that's the extent of their risk mitigation strategy.

Advisors can say "it won't happen to me" when it's their own money they're investing and not mine. But when they're professionals who are being very well paid to look after my interests, then different rules apply. :D

BJ

scrumpyjack
Lemon Quarter
Posts: 4812
Joined: November 4th, 2016, 10:15 am
Has thanked: 606 times
Been thanked: 2675 times

Re: German Property Company Collapses

#381938

Postby scrumpyjack » January 29th, 2021, 2:45 pm

I'm sure there are some good IFAs but there are many, many bad ones and I'm not sure the word 'professional' applies to many of them.

There is far too much emphasis on smooth talking selling and (large) percentage fee charging and too little on sensible objective advice.

The FCA really must be asleep on the job to allow so many scams to persist.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: German Property Company Collapses

#381943

Postby Dod101 » January 29th, 2021, 3:00 pm

We need to have confidence in our own ability. We can all lose money for ourselves and do not need to pay an IFA to help us.

Dod


Return to “Catastrophe Corner”

Who is online

Users browsing this forum: No registered users and 6 guests