Foreign investment advice please

edited 30 November -1 at 1:00AM in Savings & Investments
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Treading_WaterTreading_Water Forumite
304 Posts
edited 30 November -1 at 1:00AM in Savings & Investments
Hi All
I wonder if you can advise me re my in laws please.
They live near Alicante and have been investing about £30000 with an investor over there. They always told him that they were after the best investment available with the least risk - they are both in their early 80s.
Last year - to Dec 2006 - the value of their investment actually went down, so they reiterated that they can't actually afford to lose money and wanted a safe investment.
This year - to Dec 07 - they have been told that their investment has neither lost nor made money!!!:eek:
Whats going on? Is this man actually taking their needs into account??:confused:
Can they bring their money back to England and if so what sort of investments can they take out here? As things stand they would be better of in an E savings account - I believe they already have a UK Nationwide account. Would they just need to get a gross payment certificate?
Whilst I am pretty savvy on my own account I have no idea how it affects them as spanish residents.
Thanks in advance.
TW
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Replies

  • dunstonhdunstonh Forumite
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    Whats going on?

    Dont know. Tell us about the investments and where and whom they are using.
    Is this man actually taking their needs into account??:confused:

    Is this man a neigbour, a friend, a man down the pub?

    Can they bring their money back to England and if so what sort of investments can they take out here?

    Yes. Although due to MiFID rules introduced on 1st Nov 07, they will find their options more limited that before unless they physically return to the UK.
    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.
  • Hi Dunstonh
    The man in question is a financial advisor based in spain. I believe he specialises!! in providing investment advice for expats. I don't know therefore if he comes under the FSA umbrella.(Don't normally need one of those in spain!!)
    I haven't asked any more than that as until now they were happy to handle things themselves. It's only now in leui of recent events that they have started asking us what we think. Will it help to have specific details of the investments? Or should we just tell them to not put another penny into his pot and find other investments.
  • Whats MiFID by the way. Is it linked to Money laundering?
  • dunstonhdunstonh Forumite
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    The man in question is a financial advisor based in spain. I believe he specialises!! in providing investment advice for expats. I don't know therefore if he comes under the FSA umbrella.

    There is no FSA authorisation outside of the UK. Spain has it's own rules and from all accounts it appears very weak. Years back, Spain used to be a known as a place that struck off or banned advisers would go to give advice as there was little or no regulation. I am sure there are some very good advisers out there but it does have a bad reputation. There is quite a lot of discussion on this on the internet.
    Whats MiFID by the way. Is it linked to Money laundering?

    The part that is relevant is if companies in the UK can transact financial services business cross border. From 1st Nov 07, you needed certain requirements and many financial services companies decided not to obtain those requirements because of the higher cost and regulation involved.
    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.
  • Don't mean to be rude Treading Water but if,
    they can't actually afford to lose money
    they really should not be investing in the stock market unless it is through a product such as a guaranteed equity bond. No matter how good their financial bod is he cannot guarantee not to lose money with standard investments. Realistically the only money one should risk in the stock markets is money you can afford to lose, (obviously you try not to of course) At 80 years of age they should be kicking back and relaxing, not having to worry about the ups and downs of financial markets.

    P.S. Am surprised their investment lost money in 2006, would have thought a safe balanced portfolio would have done ok there.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • Your'e not being rude don't worry.
    TBH I think they just wanted to put there money into a safe ish investment - perhaps with a little bit of speculation. The reality would appear to have been different.
    Do you all think that they should just put what they have back into a UK savings account and leave it at that?
  • Having lived in Spain and I can tell you there are rogue IFA's, accountants, lawyers, teachers and younameits aplenty. People want to live in the sun and because they used to work as a PA for an IFA or something they think they can move out there and do the job. I would never ever trust anyone who traded abroad no matter how good their qualifications etc may seem because you are no longer under the protection of British law.
    ___________________
    There is no such thing as a stupid question, knowledge is power.
  • Your'e not being rude don't worry.
    TBH I think they just wanted to put there money into a safe ish investment - perhaps with a little bit of speculation. The reality would appear to have been different.
    Do you all think that they should just put what they have back into a UK savings account and leave it at that?

    To gain a little "speculative flavour" if this is what they want I would look at some of the guaranteed equity bonds, in case you are unfamiliar with the product, generally it involves locking a lump sum away for a period of time, a % of the capital will earn about 10% ish currently and the remaining %age is invested in something eg ftse, or property fund etc and you get a % of the gain on that. The guarantee part is that with the right bond your original investment is guaranteed so you cannot lose any money, though if the investment portion does not do well you may not make much if any. Alternately play hunt the best savings rate.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • dunstonhdunstonh Forumite
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    tradetime wrote: »
    To gain a little "speculative flavour" if this is what they want I would look at some of the guaranteed equity bonds, in case you are unfamiliar with the product, generally it involves locking a lump sum away for a period of time, a % of the capital will earn about 10% ish currently and the remaining %age is invested in something eg ftse, or property fund etc and you get a % of the gain on that. The guarantee part is that with the right bond your original investment is guaranteed so you cannot lose any money, though if the investment portion does not do well you may not make much if any. Alternately play hunt the best savings rate.

    Normally you would be shot down by all the regulars on that stating that GEBs are a naff product where only the issuer makes gains.

    However, I finally found a good one (last good one in my opinion was back in 1995). So, I would say that most of these are rubbish.
    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.
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