Nexo.io @ 6.5% - is it safe?

paolo20000

dunstonh wrote: »

1 - it is not a savings "product"
2 - its not even a retail financial services product
3 - its not risk free (despite it saying it is)

FCA permissions are passported in and only cover:
(1) Transferable securities
C(2) Money-market instruments
C(3) Units in collective investment undertakings
C(4) Derivatives in Securities, etc


There is no FSCS protection and its not risk free.

They do now say they're a licensed and regulated financial institution
Does that still not mean anything?
Also it's now 8% interest and they're about to accept ££...

barnstar2077

paolo20000 wrote: »

They do now say they're a licensed and regulated financial institution
Does that still not mean anything?
Also it's now 8% interest and they're about to accept ££...

lol, are you the OP with a new account?

Could this get much dodgier! :rotfl:

MaxiRobriguez

paolo20000 wrote: »

They do now say they're a licensed and regulated financial institution
Does that still not mean anything?
Also it's now 8% interest and they're about to accept ££...

I am a licensed and regulated financial institution who is paying 10% interest to those who deposit £10,000 into my bank account directly. No transaction fees too!

LateStarter

MaxiRobriguez wrote: »

I am a licensed and regulated financial institution who is paying 10% interest to those who deposit £10,000 into my bank account directly. No transaction fees too!

..and so's my wife.

silverwhistle

Malthusian wrote: »

Ohhh, you're trolling. Never mind.

I think they were taking the P....


Nothing wrong with high interest rates.. sure I was paying nearly 17% on my mortgage in the 80's.:D

kinger101

MaxiRobriguez wrote: »

I am a licensed and regulated financial institution who is paying 10% interest to those who deposit £10,000 into my bank account directly. No transaction fees too!

Will you throw in a free Parker pen?

paolo20000

barnstar2077 wrote: »

lol, are you the OP with a new account?

Could this get much dodgier! :rotfl:

Nope, honest question of someone who'd like do believe it.
So the answer is no, licensed and regulated financial institutions can just take your money and disappear? What's this license about then?

AnotherJoe

Paolo, without getting into the details, what generally happens is that a company gets a license to cover "X" and then on its web page offers X,Y,Z and mentions it has a license which [STRIKE]mugs[/STRIKE] investors assumes means covers X,Y,Z but it doesn't, only X, so they buy Y or Z and when it all goes Pete Tong, they then find out they weren't covered.


IMNSHO this is a huge loophole in the way the regulations operate, I believe if you offer Y&Z to the public then there should be no mention of your license for X on that website or any documentation covering Y&Z. There should be a complete split, so there's no danger of "accidental" misunderstandings.


I'll try with another analogy, lets say I am a doctor but have no surgery license. I then advertise my services for surgery on your brain. I also say i have all these medical qualifications/licenses blah blah. You assume, naturally that means I am licensed for brain surgery, and the rest is history as is your brain.


Now in the real world, I wouldnt get away with that as a doctor because their rules wont allow that. As a financial company though, it happens all the time.

paolo20000

AnotherJoe wrote: »

a company gets a license to cover "X" and then on its web page offers X,Y,Z

Makes sense, thank you.
So what I want in this case is trying to find out what their license actually covers, right?
It's true that their website nexo.io/institution-license stays very vague about this, despite presenting things in a big fancy table. I can't find this information anywhere else unfortunately.
Also in their Terms and Conditions of "Earn Interest Product" I don't like it so much that they never say what legal entity I'd actually enter an agreement with. They just present themselves as the "Nexo Group", is this dodgy or actually quite common?

AnotherJoe

paolo20000 wrote: »

Makes sense, thank you.
So what I want in this case is trying to find out what their license actually covers, right?

No. Because I can guarantee you that if they are offering 6.5% their license won't cover it so just forget about It and look at more mainstream investments. This is the classic type of bond that has the high possibility to lose you all your money even if it's not an out and out fraud.
A good example would be, you invest with Acme Brokers who have a license to sell you shares. The license will cover you against fraud by them. It won't cover the company whose shares you bought going bust so if you Bought Thomas Cook shares you've now lost all your money,
So, even if this company have a license to sell these bonds, the only guarantee is, you won't get anything back if they go bust.
Just walk away and stop chasing unicorns.