Guaranteed Growth pla

sratkin1

We invested a lump some of money into a Santander Guaranteed Growth plan (issue 9) for 5.5 years. The date of investment was 26-5-2007 so in theory this would make the maturity date 26-11-2012. After a telephone call to the bank today we were told that the maturity date would be Feb 2013 due to bank not placing the money onto the stock market until August 2007. It does not state in any documentation that the bank would hold onto the money for an extra 2 1/2 months. Can anyone please advise on this matter.

dunstonh

Can anyone please advise on this matter.

Most structured capital at risk produces have an open period prior to investment and are a fixed term from that strike date (the start date). They are not 5.5 years from the date you deposit the cheque. It would be 5.5 years from the strike date.

The strike date and term of the investment should be clearly documented in the marketing material. I suspect you are mixing up the day you deposited and the strike date.

sratkin1

Thank you for your prompt reply. We have all documentation from Santander and it does not mention about strike date on any documentation. We do not have any statements due to moving house shortly after setting up the plan. We changed our details with the bank and were sent letters to our new address related to an isa set up at the same time. However, we were told today that statements for this plan were sent to our old address and have subsequently not made their way to us. Would the statements include the strike date? We were not informed of the strike date when signing up to the plan. The strike date is not mentioned at all in the key terms document. Many thanks.

opinions4u

The strike date is not mentioned at all in the key terms document

I bet the maturity date is though.

To be fair, the details for similar products on their web site don't mention the strike date either.

sratkin1

Is the bank not obliged to inform of the strike date when signing up to such plans?

opinions4u

sratkin1 wrote: »

Is the bank not obliged to inform of the strike date when signing up to such plans?

I would expect them to be up front about this as a key piece of information and the documents issued with the account and in the T&Cs.

The FOS would too.

You could complain and, if the documentation really doesn't make it clear the FOS would probably uphold such a complaint.

You might want to ask them if they think the product is covered by the FSCS or not. For a similar type of plan mentioned on MSE last week they didn't seem to know. You could also exploit this to justify a complaint to get your funds returned early. Expect a battle though.

sratkin1

Thanks for your help

Mikeyorks

A similar product (6 years) on offer from Santander currently shows (left column) :

Start of offer period 5th March 2012
End of offer period 10th April 2012
Commencement date 14th May 2012 (ie the 'strike' date)

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223420553009&cachecontrol=immediate&ssbinary=true&maxage=3600

............ you will find similar somewhere in your documentation. It's standard on all these products.

CannySaver_2

opinions4u wrote: »

I would expect them to be up front about this as a key piece of information and the documents issued with the account and in the T&Cs.

The FOS would too.

You could complain and, if the documentation really doesn't make it clear the FOS would probably uphold such a complaint.

You might want to ask them if they think the product is covered by the FSCS or not. For a similar type of plan mentioned on MSE last week they didn't seem to know. You could also exploit this to justify a complaint to get your funds returned early. Expect a battle though.

Agree that the information should be in the documetation, but:

FOS would only come into play if Santander decline a complaint, which they may or may not do, I would indeed think it would be a battle because:

1. An decision would surely set a precedent for other investors in the plan, and;

2. Is there any financial loss here? The plan matures 6 months later than the OP thought it would, has this produced a loss? If not why make a complaint?

As an aside I can't believe the maturity date will not be shown somewhere, either in the key features, T&C's or the suitability letter.

Finally, I think I'm right in saying that the FSCS only comes into play when the issuer of a plan / account becomes insolvent, that isn't the case here.

The Canny Saver

opinions4u

CannySaver wrote: »

Agree that the information should be in the documetation, but:

FOS would only come into play if Santander decline a complaint, which they may or may not do

Spot on. Exhaust Santander's complaints process first. It will probably exhaust the OP!

1. An decision would surely set a precedent for other investors in the plan

Nothing wrong with that, given the same set of circumstances.

2. Is there any financial loss here? The plan matures 6 months later than the OP thought it would, has this produced a loss? If not why make a complaint?

That depends on what the OP is/was planning to do with the funds at what he believed was the maturity date. If a big project has been deferred or fallen flat on its face an FOS ruling could easily be to return the funds (with any accrued gain or interest) before the maturity date. That said, I fully expect the paperwork to clearly state both the start date, the introductory period, the trigger date for measuring the FTSE or whichever index is being used and the maturity date. I doubt a complaint will be upheld on therse grounds.

Finally, I think I'm right in saying that the FSCS only comes into play when the issuer of a plan / account becomes insolvent, that isn't the case here.

If the OP has been led to believe that this is a savings account covered by the FSCS and the paperwork hasn't clearly stated otherwise I would say that is grounds for the funds to be returned with any interest that would have been earned from a 5 year term deposit opened at the same time.

Santander have admitted themselves that they're "not sure" if such structured products are covered by the FSCS (which is a stunning admission). I would say that any saver escalating a complaint to the FOS on these ground could be in a strong position to get their funds back before the maturity date.

But on both issues it all depends upon the documentation issued at the time the account was opened.

dunstonh

I suspect that with the brochure, the suitability report, key features document and the letter sent in the post confirming the terms and acceptance, I doubt there will be no mention of the strike date and the maturity date.

By the time a complaint is made and Santander reject it (which they almost certainly will from a logical point of view) and then you go to the FOS and wait 6-12 months for their decision the plan would have matured.