Wealth Management companies: web site location of reviews from existing customers?

KevinLondon

This morning I received an unexpected request from a relative who is keen to invest through an unknown (to the both of us at least, though that is not saying much) wealth management company (purely given their very high quoted returns) and wanted me to give my instant opinion on the advisability of doing this, which I duly did (...it involved not touching with a barge pole). I have deliberately not mentioned the company name and am not clear that the forum rules would allow me to do so anyway, but I would have assumed that someone might be able to point me to a web site that holds reviews on such companies, since a simple search of the company name yields little more information than that provided by their own web site, which seemed strange in itself.

[At this stage all I know is that they have a Canary Wharf address, are FCA authorised, have a fairly minimal web site and their apparent parent company appears to be, or at least has been, based in France (given their 'trading as' name). It is just that their 'very posh' sales contact gave the following information, as relayed by my relative:
1) investments are in UK government guilts that have been liquidated by UK banks;
2) the investments are guaranteed up to £5 million;
3) your investment can be cashed in with just 2 weeks' notice (though my relative did not mention if there are any penalties for doing so, I suspect that he had not asked).

To me if sounds too good to be true it generally is, hence my attempts to locate any source of reviews to make absolutely sure that my relative will not be tempted, especially at a time of very low savings rates...]

Thank you in advance.

eskbanker

You are allowed to mention the name of the company concerned on here, and if you use the search facility then you'll probably find that others have beaten you to it!

The most prominent review site is TrustPilot but to be honest it's unlikely to be useful to look for reviews anyway, because these sort of operations will look fine to 'investors', potentially for years, until they collapse in a heap and it's all too late.

You can also search the FCA website, both the register of authorised companies and the list of companies who've been warned.

The best approach will be to name them on here, and posters will usually be very quick to spot the catches, but there will be plenty.  The use of the word 'guarantee' for a start - that's a defined term that can only be used in very specific circumstances by authorised companies, and it's massively likely that this company won't legitimately be able to use it....

coyrls

Also this:

investments are in UK government guilts that have been liquidated by UK banks

makes no sense at all but you cannot under any circumstances make "very high quoted returns" from UK Government Gilts.

KevinLondon

The other reason that I did not mention the Wealth Management company's name was that my relative might well have got a bit (potentially very) carried away with his interpretation of what he was being told (given a complete lack of an investment background) and this should not thus reflect on the actual statements that were provided by the respective wealth managers. It is thus with that statement in mind, that I am attempting to gain feedback on "MAEF Wealth Management trading as Mes Assurances Et Finances is authorised and regulated by The Financial Conduct Authority (FCA Authorisation Number: 580612)."

eskbanker

What about the actual investments being recommended - what are they and which company is actually said to be offering them?

inspectorperez

If you check out this organisation through the FCA register, you will note that it derives its permissions for regulated activities from a company named Euronet Payment Services Limited. You may wish to do some due diligence on this company. Companies House website indicates its accounts are overdue - last one's filed are up to 31 December 2018! This is never a good sign.

I find it interesting that MAEF do not appear to be operating as a limited company which makes me wonder what sort of governance they have?

dunstonh

There is a general rule of thumb that you should avoid companies with Wealth Management in their name or tagline.  They tend to be limited on investment choice and usually more expensive.  It is not a 100% rule as there are exceptions.
FAs are restricted in what they can offer.   DFMs add a tier of charges that do not exist with non DFM portfolios.  So, the choice should really come down to either using an IFA or doing DIY.        

1) investments are in UK government guilts that have been liquidated by UK banks;
2) the investments are guaranteed up to £5 million;
3) your investment can be cashed in with just 2 weeks' notice (though my relative did not mention if there are any penalties for doing so, I suspect that he had not asked).

Modern retail investments in the UK tend to be open-ended nowadays with no penalty or cost to "cash them in".  And the money is usually available within 2-3 days of putting the sale instruction in.  No notice required.
If you start using less mainstream investments then you start to see differences and costs that are often not present on the mainstream.  A new investor with limited knowledge and understanding should stick to the mainstream.
The use of the word "guaranteed" is not common in UK financial services as it really has to mean guaranteed in every sense.  So, I would be looking for a greater explanation there.      I would also question what point 1 means as it is unclear.  Gilts are issued and available to buy and sell like shares.  Nothing to do with being liquidated.  Gilts are generally low return assets.

Of course, we have to be wary that you are telling us after you have been told by the relative who has limited understanding.

Can you give us an example of the investments (name maybe) and the returns quoted? 

KevinLondon

Thanks you, I now have the emails for the  investments that have been offered (so far), by 'MAEF Wealth Management', after my relative undertook a 'best rates' type search on 'Money Supermarket' and was given the investment company's contact details:
=====================
THE BANK OF SCOTLAND (corporate not protected by FSCS)
Issuer The Bank of Scotland

ISIN Number: GB0000394915
(you can find the bond online through searching this)

Coupon: 13.625% Fixed per annum.

Issue Date: June 1991

Maturity Date: june 2024

Coupon Frequency: Bi-annually

Accessibility: 14 days

=====================

The National Grid Gas PLC

ISIN Number: XS0058343251
(you can find the bond online through searching this)

Coupon: 8.75% Fixed per annum.

Issue Date: 27th June 1995

Maturity Date: 27th June 2025

Coupon Frequency: Annually - 27th June

Accessibility: 14 days

Protection: UK Treasury : Up to £5,000,000
=====================
Issuer: UK Treasury

ISIN: GB0002404191
(You can find the GILT online searching this number)

Issue date: 29/01/1998

Maturity Date: 07/12/2028

Payment Frequency: Bi-annually (8th Jun & 8th Dec)

Interest rate: 6% FIXED

Accessibility: 14 days

Protection: £5,000,000 UK Treasury Insurance

KevinLondon

My reference to 'liquidation' that had been relayed to me appears in the 2 emails that I have just received as follows:

"As an institution, we currently have access to a UK Treasury GILT via a corporate client liquidation which offers investors a guaranteed fixed return of 6% per annum. These being on a first-come basis for existing clients or upon receipt of application."

==
"Today we have received a liquidation request from a corporate client offering the highest protected product on the UK market, fully protected by the UK Treasury up to £5,000,000 paying 8.75% They are also liquidation a corporate bond with The Bank of Scotland that is offering a massive 13.625% fixed rate but not covered by the FSCS."

Croeso69

KevinLondon said:

Thanks you, I now have the emails for the  investments that have been offered (so far), by 'MAEF Wealth Management', after my relative undertook a 'best rates' type search on 'Money Supermarket' and was given the investment company's contact details:
=====================
THE BANK OF SCOTLAND (corporate not protected by FSCS)
Issuer The Bank of Scotland

ISIN Number: GB0000394915
(you can find the bond online through searching this)

Coupon: 13.625% Fixed per annum.

Issue Date: June 1991

Maturity Date: june 2024

Coupon Frequency: Bi-annually

Accessibility: 14 days

=====================

The National Grid Gas PLC

ISIN Number: XS0058343251
(you can find the bond online through searching this)

Coupon: 8.75% Fixed per annum.

Issue Date: 27th June 1995

Maturity Date: 27th June 2025

Coupon Frequency: Annually - 27th June

Accessibility: 14 days

Protection: UK Treasury : Up to £5,000,000
=====================
Issuer: UK Treasury

ISIN: GB0002404191
(You can find the GILT online searching this number)

Issue date: 29/01/1998

Maturity Date: 07/12/2028

Payment Frequency: Bi-annually (8th Jun & 8th Dec)

Interest rate: 6% FIXED

Accessibility: 14 days

Protection: £5,000,000 UK Treasury Insurance

Those top 2 securities exist but you wont get the rates quoted as they are all trading above par. You will get a yield to maturity (income less capital loss on maturity) more like 2% pa.

I dont know about the third but if it is just a gilt maturing in 2028 then the redemption yield is less than 1% pa.

KevinLondon said:

My reference to 'liquidation' that had been relayed to me appears in the 2 emails that I have just received as follows:

"As an institution, we currently have access to a UK Treasury GILT via a corporate client liquidation which offers investors a guaranteed fixed return of 6% per annum. These being on a first-come basis for existing clients or upon receipt of application."

==
"Today we have received a liquidation request from a corporate client offering the highest protected product on the UK market, fully protected by the UK Treasury up to £5,000,000 paying 8.75% They are also liquidation a corporate bond with The Bank of Scotland that is offering a massive 13.625% fixed rate but not covered by the FSCS."

That just sounds like garbage, sorry, which makes me think this is a potential scam.

Croeso69

MAEF Wealth Management not listed at companies house and their website server is hosted in Iceland. Bargepole territory.