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Britannia 3 year GCIB

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Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Part of the Furniture 10 Posts
    To OP - The Wayback machine archive is down at the moment for the relevant dates, but worth checking when its back up. I managed to find a 2008 version of the product factsheet, but I'm not allowed to post links yet here.

    A question for those in the know: - My mum (80 now) was sold one of these when she visited her Brittania branch in 2009. She had her savings in an easy ISA at the time and was happy with the interest beng received. Somehow got sold this by an adviser promising it would do much better than her ISA.

    Maturity was today and they couldn't tell her anything about the return yesterday. As far as I can tell, the FTSE is definitely up on 2009 even allowing for 6 months averaging.

    This seems like a product where a factfind should be conducted however. I know for certain my mum would never have bought it if she had understood it (she would not buy anything where the return was connected to shares and would not risk lower/zero interest) and she claims that no questions were asked about what she wanted.

    Does anyone have a view on what the regs would say about how this type of bond should be sold?

    Thanks
    Stuart
  • dunstonh
    dunstonh Posts: 120,283 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Should a factfind be conducted when selling this type of product?

    Deposit based structured products probably not. Investment based SCARPS yes.

    However, the banks churned these products out like crazy and a lot of the staff that sold them didnt understand them or the risks fully. With the RDR, there wont be many banks or building societies left doing them on advice any more. Although some may well decide to continue them on non-advice basis (no factfind, no advice, no report)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    dunstonh wrote: »
    (no factfind, no advice, no report)

    And therefore no fees.

    Oh, wait!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • dunstonh
    dunstonh Posts: 120,283 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    gadgetmind wrote: »
    And therefore no fees.

    Oh, wait!

    Everything has fees. Some you see. Some you dont. Wouldnt be much of a business if they didnt.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Part of the Furniture 10 Posts
    dunstonh wrote: »
    Deposit based structured products probably not. Investment based SCARPS yes.

    Thanks for your reply.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    dunstonh wrote: »
    Everything has fees. Some you see. Some you dont.

    I know which I prefer: fees that you can see, but which are so teeny that you have to peer really hard.

    Hidden fees OTOH tend to be huge because, well, they're hidden!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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