SIPP investment in Property

2456714

Replies

  • dunstonhdunstonh Forumite
    109.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    The broker says that this is NOT unregulated, as it is a Loan Note. Any comment on this? Thanks.

    It is not regulated in terms of retail products for consumers. Nor is the company regulated to give advice.
    I'm not tempted by this unless it is a safe as buying and selling shares on the London Stock Market.

    On that criteria, you should now be saying goodbye to them. You are looking a highly specialist options that people with very large portfolio (in excess of £1 mill) may use for a very small ratios of their portfolio (maybe around 5%). They would not use a start up company working out of a virtual office who was not regulated to source it.

    Just because the particular option doesnt need to be FCA regulated, does not mean it can run around ignoring FCA regulations. IFAs can recommend non-regulated options. However, advice is regulated. No advice should ever see someone put significant amounts of their portfolio into unregulated specialist options. Now, if you want to put 5% in for a dabble then fair enough. If you lose it then it wont be the end of the world. However, that is the sort of ratio you should be looking at and these options are available through regulated companies (even if the investment itself is not regulated). Currently you are being sold to. You are getting salesman speak. Put that to one side and think more logically.
    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.
  • lozzy1965lozzy1965 Forumite
    514 Posts
    Tenth Anniversary 500 Posts Name Dropper Photogenic
    ✭✭
    Thanks Dunstonh.

    I was not thinking of going for this, but I would be foolish not to investigate (via the help of you experts) a guaranteed 12% return on a 1 year investment, rather than simply dismiss it? Sounds too good to be true but may just be plausible?
    dunstonh wrote: »
    If an insurer was promoting an insurance company investment as being the best thing going would you think they are right? no. So, why do you think this unregulated promoter is?

    I don't think this promoter is. This thread is my due diligence.
    dunstonh wrote: »
    You are getting salesman speak. Put that to one side and think more logically.

    I always spot salesman speak. I am the biggest cynic out there :)

    Thanks once again for your input.
  • atushatush Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    this thread is not due dilligence. Not really, you are again taking advice from unknown sources.

    However, you have been told this is unregulated, and your 'advisor' says it is. your advisor is therefore lying to you.

    you can get 12% increase in an investment, one of my investment trusts is up that much year to date. And it can be traded easily thru a platform or direct with a stock broker.
  • edited 31 August 2013 at 5:18PM
    lozzy1965lozzy1965 Forumite
    514 Posts
    Tenth Anniversary 500 Posts Name Dropper Photogenic
    ✭✭
    edited 31 August 2013 at 5:18PM
    atush wrote: »
    this thread is not due dilligence. Not really, you are again taking advice from unknown sources.

    I did mean it is MY due diligence. The advice I am taking here is from someone who has 10's of thousands of "thank you's", and saves me flying out to Germany to see the investment opportunity for myself. It is also the same advice coming from several different contributors. That is the kind of 'due diligence' I am happy with at this stage. Do you have improved 'due diligence' to suggest?
    atush wrote: »
    However, you have been told this is unregulated, and your 'advisor' says it is. your advisor is therefore lying to you.

    This would seem to be the case, though my adviser hasn't commented on why he says it IS regulated yet.
    atush wrote: »
    you can get 12% increase in an investment, one of my investment trusts is up that much year to date. And it can be traded easily thru a platform or direct with a stock broker.

    Yes. One can get 12%, or more, from a single investment, but not guaranteed.

    Points taken though. Thank you for contributing.
  • lozzy1965lozzy1965 Forumite
    514 Posts
    Tenth Anniversary 500 Posts Name Dropper Photogenic
    ✭✭
    I thought this subject was worth continuing, for the benefit of other users, as I haven't totally dismissed the opportunity yet!

    This is a very interesting link (which I am not allowed to post yet, so a I've had to split it up!):
    www. sippclub .com
    /sipp/dolphin-capital-gmbh-inspection-visit

    Does this count as acceptable due diligence? It sounds authentic, and thorough.

    So, in my opinion, the opportunity does sound plausible. The 'risk' element is around the way I was approached by Natural Resource Capital, and whether I should do business with them. So mostly taking Linton's, but some other's, points:

    - David Hall has told me that he did not say the investment was "regulated", just that it was not an "unregulated collective investment scheme (UCIS)". It IS unregulated, but that is because it is not within the normal Financial Markets. So if you want to 'diversify' away from these markets you won't get FCA protection.
    - The company is young, yes. Everyone has to start somewhere though?
    - St Clements House has many virtual and managed offices in it. Natural Resources Capital say they have a 'real' office in this building. I WILL be checking this out before (if) I invest.
    - Cold calling. Not great, but a young company does need to get clients somehow?
    - I would agree that one should not put more than 5% of one's portfolio in something like this.

    Comments anyone?
  • dunstonhdunstonh Forumite
    109.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    - David Hall has told me that he did not say the investment was "regulated", just that it was not an "unregulated collective investment scheme (UCIS)". It IS unregulated, but that is because it is not within the normal Financial Markets. So if you want to 'diversify' away from these markets you won't get FCA protection.

    It really comes down to two things. Regulated or unregulated. It is one or the other. Just because it is not UCIS does not mean it suddenly looks a lot better. Unregulated is unregulated. Unregulated is generally considered unsuitable to the average consumer.
    - Cold calling. Not great, but a young company does need to get clients somehow?

    FCA do not allow cold calling on investments and pensions. Now that doesnt apply to unregulated companies but if a unregulated company is calling on regulated areas then you have to be on guard. How does a young regulated company get its clients? not by breaking FCA rules.
    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.
  • LintonLinton Forumite
    14.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    ✭✭✭✭✭
    lozzy1965 wrote: »
    .....
    - David Hall has told me that he did not say the investment was "regulated", just that it was not an "unregulated collective investment scheme (UCIS)". It IS unregulated, but that is because it is not within the normal Financial Markets. So if you want to 'diversify' away from these markets you won't get FCA protection.
    There are thousands of regulated investments. Have you exhausted the opportunities these provide?
    - The company is young, yes. Everyone has to start somewhere though?
    Do you want them to gain experience and credibility using your money?
    - St Clements House has many virtual and managed offices in it. Natural Resources Capital say they have a 'real' office in this building. I WILL be checking this out before (if) I invest.
    - Cold calling. Not great, but a young company does need to get clients somehow?
    The FSA (as was) did not regard cold calling as an appropriate method of selling investments. Any company doing this must therefore be regarded with suspicion.
    - I would agree that one should not put more than 5% of one's portfolio in something like this.
    Unless you have a very large portfolio, investing < 5% in anything seems to me to be too much hassle for too little absolute gain. The time you spent investigating this could perhaps be better spent researching for the 95%.

    Comments anyone?


    It's your money - whether you invest in this is up to you. Perhaps you can let us know how it worked out in a few years time.
  • holly_hobbyholly_hobby Forumite
    5.4K Posts
    1,000 Posts Combo Breaker
    ✭✭✭✭
    Oh dear ...

    You can lead a horse to water .....

    H
  • lozzy1965 wrote: »
    This is a very interesting link (which I am not allowed to post yet, so a I've had to split it up!):
    https://www.sippclub.com/sipp/dolphin-capital-gmbh-inspection-visit

    Does this count as acceptable due diligence? It sounds authentic, and thorough.

    No it doesn't count as acceptable due diligence.

    I KNOW that website and i'm wondering if we should question YOUR authenticity?!

    You have to do some real digging to find sippclub.com in a google results search and you know too much to be asking the fundamental questions you are asking.

    Let's leave it there shall we?
  • edited 8 September 2013 at 4:09PM
    atushatush Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts
    ✭✭✭✭✭
    edited 8 September 2013 at 4:09PM
    Oh dear ...

    You can lead a horse to water .....

    H


    But you can't stop it drinking the Koolaid?
Sign In or Register to comment.
Latest MSE News and Guides