8.05% Rolling Account One Year Notice from Friends Mutual

Aegis

antrobus wrote: »

Friends Mutual is owned by City Corporation Ltd which is a real UK company which appears to do a lot of things from Waste Management to Property development. I would guess that Friends Mutual is simply a vehicle for financing the activities of said City Corporation.

My own guess is that City Corporation has no idea that their name is being used in this context. Scammers have no qualms about misusing other companies to further their own goals.

You can guarantee that if a UK company wanted to create a mutual company to fund its activities (which seems to be a contradiction in terms to some extent), it wouldn't create an offshore company regulated by the furthest-away country's rules to achieve that goals.

There's nothing about this set-up that sounds even remotely legitimate, this is just not how real UK companies do business.

antrobus

Aegis wrote: »

... My point here was supposed to be that the bank won't be limited to making, say, £80 of loans for £100 deposit like a private non-banking company would have to do....

No, the point is that if the Central Bank does specify a reserve requirement, then any individual bank will be limited to making say, £80 of loans for £100 deposit, but a private non-banking company would not be subject to any kind of reserve requirement at all and therefore would be free to lend out the whole £100.

This is the reason why the UK, in common with many other jurisdictions, insist that only banks can accept deposits from the public.

What Friends Mutual/City Corporation are doing is exploiting a 'loophole' in the regulatory system, whereby a New Zealand registered institution can 'pretend' to be a bank as far as non NZ residents are concerned.

badger09

I haven't actually signed up yet, but I think I've found the answer to all my prayers:T.

This looks like the perfect place to invest my life savings. 'Friends Mutual specialises in safe and secure savings accounts with high interest deposit rates.' £100k @ 8.05% and no risk. I'm in

Should this now be the first place we mention to all newbies who ask what to do with their £50/£100/£200k?

innovate, gadgetmind, atush, dunstonh et al - you're redundant




:rotfl::rotfl::rotfl::rotfl:

antrobus

Aegis wrote: »

My own guess is that City Corporation has no idea that their name is being used in this context. Scammers have no qualms about misusing other companies to further their own goals.

Then you'd be wrong.
http://city-corporation.com/friendsmutual.html
http://whois.domaintools.com/friends-mutual.com

Aegis wrote: »

...You can guarantee that if a UK company wanted to create a mutual company to fund its activities (which seems to be a contradiction in terms to some extent),

The only thing mutual about Friends Mutual Ltd of New Zealand is the name.

Aegis wrote: »

...it wouldn't create an offshore company regulated by the furthest-away country's rules to achieve that goals.

And yet that is exactly what we have here.

Aegis wrote: »

...There's nothing about this set-up that sounds even remotely legitimate, this is just not how real UK companies do business.

Depends on what kind of business you're in.

innovate

Aegis wrote: »

My own guess is that City Corporation has no idea that their name is being used in this context.

They do - http://city-corporation.com/services.html

Funny portfolio of services - - from pensions to car park systems to waste management.....oh, and off-shore "savings"!

Aegis

innovate wrote: »

They do - http://city-corporation.com/services.html

Funny portfolio of services - - from pensions to car park systems to waste management.....oh, and off-shore "savings"!

Ok, so it seems like it's a dodgy UK company operating a dodgy NZ company. Still nothing I'd touch with a barge pole!

antrobus

Aegis wrote: »

Ok, so it seems like it's a dodgy UK company operating a dodgy NZ company. Still nothing I'd touch with a barge pole!

Absolutely, the words 'bargepole', 'don't', 'touch', and 'with' are what spring to my mind.

This page here - http://global-money.com/item.php?id=353 - explains what's going on here. It appears that you can pop along to New Zealand, set up a company, register it as a 'financial services provider' so that it looks all so proper and authorised, but are exempt from any kind of regulation or supervision so long as you don't do any business with NZ residents.

The cited source will even "offer you a fully operational Financial Institution complete with Banking Software, web site design, secure hosting and ongoing support" in return (no doubt) for a fat fee.

Aegis

To clarify, part of the reason I write this is the text on the site, such as:

Rather than volatile returns from unit trusts or desultory returns from bank deposits, we help your pension make super returns from secured property investments...

Passing off property investments as "super" and implying that the volatility is lower than unit trusts (which is baffling as unit trust volatility runs the entire range from a little above zero to huge, so the point appears to be very badly made) is more than a little concerning, as is the fact that this company is making all sorts of claims but is not itself authorised or regulated by the FSA, instead having to pass details over to another company to provide advice.

The pensions section goes on to clarify that the third party adviser firm will:

Although City Endowments Limited has taken all reasonable care to compile the Content accurately, no reliance should be placed on it for any purpose whatsoever. City Endowments Limited gives no representation or warranty, express or implied, as to the accuracy of the information or opinions contained in or as to the completeness of the Content.

In particular, the Content:

• is intended to provide a general understanding of the process and stages involved;
• is for information purpose only;
• does not purport to contain all information that a prospective investor may require;
• provides illustrative projections, based on a number of assumptions, rather than forecasts;
• is subject to updating, revision and further amendments;
• should not be taken as investment advice;
• does not constitute or form part of any solicitation, offer or invitation to sell, issue, purchase or subscribe for any shares, securities or other financial instruments;
• shall not form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

City Endowments Limited does not undertake or accept any obligation:

• to correct any inaccuracies in or omissions from the Content that may become apparent
• to update the Content;
• to provide a reader of the Content with access to any additional information;
• to continue any discussions or negotiations with a prospective investor; nor
• to proceed with any transaction.

In relation to any further information made available, a reader of the Contents agrees:

• to keep this as permanently confidential;
• not to reproduce, copy or circulate it, in whole or in part, to any third party without the express prior consent of City Endowments Limited.

Finally, in no circumstances will City Endowments Limited be held responsible for any costs, losses or expenses, howsoever arising, incurred directly or indirectly in connection with:

• use of the Contents;
• any appraisal or evaluation conducted by a prospective investor; and/or
• any subsequent investment.

I've highlighted the bits I have trouble with in bold, as I think there's something very worrying about many of these points.

jimjames

antrobus wrote: »

Absolutely, the words 'bargepole', 'don't', 'touch', and 'with' are what spring to my mind.

This page here - http://global-money.com/item.php?id=353 - explains what's going on here. It appears that you can pop along to New Zealand, set up a company, register it as a 'financial services provider' so that it looks all so proper and authorised, but are exempt from any kind of regulation or supervision so long as you don't do any business with NZ residents.

The cited source will even "offer you a fully operational Financial Institution complete with Banking Software, web site design, secure hosting and ongoing support" in return (no doubt) for a fat fee.

That would explain it. The info on their website is utterly bizarre:

Friends Mutual is supervised by the New Zealand DIA and is a member of a dispute resolution scheme approved by the New Zealand government.

Friends Mutual lends selectively within Europe primarily for domestic mortgages and property development.

Why would a legitimate company registered in NZ only lend in Europe.

innovate

Aegis wrote: »

To clarify, part of the reason I write this is the text on the site, such as:....................
.........I've highlighted the bits I have trouble with in bold, as I think there's something very worrying about many of these points.

How can they be FSA authorised with such clauses?