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The Sharks Exposed - New Costa del Sol Action Group

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COSTA DEL SOL ACTION GROUP<br />

FREE COPY<br />

Court <strong>Action</strong> taken against<br />

Rothschild and Hamiltons<br />

Free UK Health Care for Expats<br />

WHICH Report on<br />

Equity Release<br />

Black Clouds & Silver Linings<br />

magazine<br />

issue no. 3<br />

<strong>The</strong> <strong>Sharks</strong> <strong>Exposed</strong><br />

Illegal Capital Gains Tax Payments<br />

We list all licensed and<br />

unlicensed Financial Advisors<br />

Wish to join our committee? Tel: 952 884 261<br />

WWW.COSTA-ACTION.CO.UK<br />

COVERING - MAINLAND SPAIN · BALEARICS<br />

CANARY ISLANDS · GIBRALTAR


<strong>The</strong> Blacktower Financial Management <strong>Group</strong> is now providing a<br />

unique vehicle that encompasses :-<br />

· Wealth Protection<br />

· Passive Investing<br />

· Guaranteed minimum 6.5% yield, increasing up to 7.3%<br />

· 80% capital guarantee by a AA rated bank<br />

· Minimum investment of only £25,000<br />

· No exit penalty<br />

Blacktower have an experienced and regulated team of qualified consultants who<br />

specialise in both the English and Scandinavian speaking communities.<br />

We provide objective advice on the suitability of all<br />

Wealth and Investment Management opportunities.<br />

Call 952 816 443 Today for More Information<br />

Blacktower<br />

Financial<br />

Management<br />

<strong>Group</strong><br />

Represented in Spain Tel: 00 34 952 816 443<br />

Represented in Portugal Tel: 00 351 289 355 685<br />

United Kingdom Tel 00 44 1372 844 344<br />

Gibraltar Tel: 00 350 200 42353<br />

Blacktower Financial Management (International) Ltd<br />

Suite 21 - 23 Victoria House, 26 Main Street, PO Box 671 · Gibraltar<br />

www.blacktowerfm.com<br />

Blacktower Financial Management (International) Ltd. is Licensed in Gibraltar by the Financial Services Commission (FSC) Licence No. 00805B.<br />

Blacktower Financial Management Ltd. is authorised and regulated in the UK by the Financial Services Authority.


introduction<br />

This is our third magazine with even more issues of<br />

fraud and financial disaster to contend with than<br />

before. What with the credit crunch and well known<br />

and established names seeking help and financial<br />

assistance it is surely a stressful time economically.<br />

Many banks and financial institutions are claiming<br />

assistance from their respective governments with<br />

even the IMF having to step in and save Iceland (the<br />

country not the supermarket) from financial ruin<br />

and with Greece seemingly not far behind. In these<br />

critical times it is even more imperative that good,<br />

sensible and regulated advice is obtained for you<br />

and your investments. Only regulated and qualified<br />

sources should be contacted for such advice as it is in<br />

these dire times that quality advice is a must. Anyone<br />

can make money in boom times, even monkeys with<br />

pins!<br />

Equity Release (ER) problems are still the main reason<br />

for people to contact us. It is essential that extreme<br />

caution is taken before committing your main asset<br />

(in many cases) to such a scheme. We make no<br />

apologies for having many articles concerning ER in<br />

this issue and references to the extreme importance<br />

of a full and comprehensive understanding of the<br />

implications of any ER contract before entering into<br />

it. It is crucial that all relevant details, including the<br />

total costs, commissions and interest payable, are<br />

fully listed and understood before you give your<br />

approval. Any scheme where there is a possibility<br />

that you could lose your home should be thrown into<br />

the bin. Our lawyers are extremely busy taking legal<br />

action against banks and agents who have acted<br />

fraudulently in some of these ER contracts. It is not<br />

helpful that in Spain there is no Financial Ombudsman<br />

Service as there is in the UK, although I do believe one<br />

will eventually be established here, and will find itself<br />

extremely busy!<br />

www.costa-action.co.uk<br />

<strong>The</strong> committee have been very busy on behalf of<br />

our members and we believe we are making a<br />

difference. It is useful for you to know that like our<br />

members, all on the committee are victims of fraud<br />

and mis-selling. We give our time and effort freely<br />

and without any personal financial gain. All our<br />

endeavours are concentrated on making this area of<br />

Spain free of non-regulated financial cowboys and<br />

to help those that have fallen into their clutches,<br />

financially compensated. It is worth noting that<br />

the regulated entities along our coasts love us and<br />

the unregulated ones hate us. <strong>The</strong> aims of the latter<br />

only being to make the maximum financial gain out<br />

of as many people as possible. We try to limit these<br />

numbers to the minimum and through our help and<br />

assistance; you should also support this objective.<br />

You will of course hear some good and some bad<br />

things regarding our group. All sorts of rumours have<br />

surfaced about our credibility. All I would say is that<br />

character assassination is regularly used by those who<br />

have been taken to task by us for usually not being<br />

legal and regulated to operate here in Spain. We are<br />

happy to hold ourselves and our group up to scrutiny<br />

by anyone. If you have any questions with regard to<br />

any aspect of our work then please let us have them<br />

and we will feature them in our next magazine. We<br />

welcome your enquiries and believe in complete<br />

financial accountability and transparency.<br />

You will note that we have a letters page which to be<br />

frank we could fill with complimentary letters. We<br />

also get a number of telephone calls from the public<br />

extolling our group’s aims and achievements. Many<br />

have thanked us for being the main reason for them<br />

withdrawing from suspect contracts. Unhappily this<br />

3


introduction<br />

has not always been the case as our numbers are still<br />

growing and the tragic stories of unnecessary financial<br />

disasters are increasing in intensity. If you feel that you<br />

have been mis-sold to, or that you have been given<br />

bad advice from any financial adviser, please contact<br />

us for a free appraisal of your situation. Remember<br />

that you are not the cause of your predicament only<br />

the innocent victim. You should never feel that your<br />

dilemma is due to your bad judgement or ignorance<br />

and that you are too proud to come forward. I can<br />

almost categorically guarantee that you have been<br />

a victim of a clever scheme structured by extremely<br />

competent salesmen that were beyond your financial<br />

knowledge and understanding. Remember that they<br />

are the professionals and you are the amateur.<br />

<strong>The</strong> CDSAG wishes to thank John Blainey for<br />

all the help and support that he has given to our<br />

cause over the last few years.<br />

We wish him well for the future.<br />

Contact;<br />

John Parsons 952 884 261<br />

JohnP@costa-action.co.uk<br />

Sharon Macnish 952868873<br />

sharon@costa-action.co.uk<br />

Ian Selley 952882324<br />

COSTA DEL SOL<br />

ACTION GROUP<br />

Tel: 0034 952 884 261<br />

Email: info@costa-action.co.uk<br />

Website: www.costa-action.co.uk<br />

Deposito Legal: CA-7008<br />

4 www.costa-action.co.uk<br />

5. ‘Nosedive’ in Consumer<br />

Confidence<br />

6. What is a Fogain?<br />

7. How to find a Registered<br />

Lawyer<br />

8. <strong>New</strong>s Alerts<br />

12. <strong>The</strong> Dangers of Equity Release<br />

13. Black clouds & Silver linings<br />

15. WHICH report on Equity<br />

Release<br />

16. Equitable Life Update<br />

17. Prima Capital Guaranteed<br />

18. Spain Enters Recession<br />

19. Unauthorised Lists<br />

24. SITIRS<br />

25. Lawyers Press Release<br />

27. Good/Bad <strong>New</strong>s<br />

28. Unfair CG tax payments<br />

29. Avoiding the Con<br />

31. UK Healthcare Myth.<br />

32. Letters<br />

33. Dealing with IFA’s<br />

Whilst every effort is made to maintain the accuracy and<br />

reliability of the information in the magazine, <strong>The</strong> <strong>Costa</strong> <strong>del</strong> <strong>Sol</strong><br />

<strong>Action</strong> <strong>Group</strong> does not accept any responsibility for errors and<br />

omissions regarding the information published.<br />

Any Company or Individual who is of the opinion that our<br />

information is incorrect is invited to make contact with us.<br />

We cannot accept any responsibility for readers responding<br />

to items published and suggest that further professional<br />

advice and information is sought from bona fide and reliable<br />

sources.<br />

No part of the publication, including pictures may be copied,<br />

used or reproduced without our prior written consent.


Consumer confidence takes a nosedive<br />

By: thinkSPAIN , Tuesday, March 3, 2009<br />

Consumer confidence in Spain dropped<br />

sharply in February as a direct result of<br />

citizens’ perception of the deteriorating<br />

economic situation.<br />

<strong>The</strong> monthly<br />

Confidence<br />

I n d i c a t o r ,<br />

published by<br />

the Official<br />

C r e d i t<br />

I n s t i t u t e<br />

(ICO), is based on a questionnaire filled out by<br />

1000 Spaniards representing a cross-section<br />

of society and shows a figure between 0 and<br />

200, over 100 reflecting a favourable and<br />

optimistic perception and under 100 reflecting<br />

a negative and unfavourable perception.<br />

February’s figures show a 1.5 point drop<br />

compared with the previous month, reaching<br />

a new low of 48.6. <strong>The</strong> Official Credit Institute<br />

Farewell to David<br />

Unfortunately David Klein one of the founder members of the<br />

<strong>Action</strong> <strong>Group</strong> has retired due to continued ill health.<br />

David has worked relentlessly along with other members of the<br />

committee for the past 7 years helping many people who have<br />

been cheated of their hard earned money.<br />

We all wish to thank David for his untiring tenacity and hard<br />

work and wish him well for the future.<br />

www.costa-action.co.uk<br />

(ICO) does not expect consumer spending<br />

to increase in the short term and therefore<br />

sees no immediate upturn in the economic<br />

situation.<br />

Consumers were specifically asked to<br />

evaluate the economic situation of their family,<br />

the employment market and the country’s<br />

economy. <strong>The</strong> resulting figures represent a<br />

new low for the country.<br />

<strong>The</strong> ICO president, Aurelio Martínez, reported<br />

that consumers did however expect lower<br />

inflation and lower interest rates over the next<br />

12 months.<br />

He also noted that ‘there could be a slight<br />

increase in confidence by summer if inflation<br />

rates are lowered as expected and because<br />

of the resulting repercussions on mortgages.’<br />

‘Every point they drop,’ he added, ‘means 6<br />

million euros going directly into the pockets of<br />

Spanish families.’<br />

5


<strong>The</strong> FOGAIN (whose entire legal name<br />

is FONDO GENERAL DE GARANTÍA<br />

DE INVERSIONES) is the Investors<br />

Compensation Scheme for clients of<br />

Spanish investment firms and clients of<br />

Spanish UCITS Managers (in this latter<br />

case, only where a discretionary portfolio<br />

management relationship has been<br />

established by the investor with the firm).<br />

<strong>The</strong> FOGAIN has been established to<br />

compensate, with the quantitative limits<br />

legally established, to those clients of any<br />

of the above entities in respect of which<br />

the following occurs:<br />

<strong>The</strong> relevant firm becomes insolvent.<br />

As a consecuence of that, the investor<br />

is not able to recover the moneys or<br />

securities that she/he <strong>del</strong>ivered to - or put<br />

at the dispossal of- the investment firm for<br />

the provission of an investment service.<br />

<strong>The</strong> FOGAIN has been legally established<br />

as a Fund that is managed by a managing<br />

entity called the Gestora <strong>del</strong> Fondo<br />

General de Garantía de Inversiones, S.A.<br />

(“Gestora”).<br />

All Spanish investment firms, including<br />

portofolio managers (Sociedades<br />

Gestoras de Carteras), brokers<br />

(Agencias de Valores) and brokerdealers<br />

(Sociedades de Valores) are<br />

6 www.costa-action.co.uk<br />

mandatory members (“Entidades<br />

Adheridas”) of the FOGAIN. Becoming a<br />

member of the FOGAIN is mandatory for<br />

branches in Spain of foreign investment<br />

firms incorporated in a non-EU country.<br />

Branches in Spain of foreign investment<br />

firms incorporated in another EU country<br />

may also join the FOGAIN if they decide<br />

to do so.<br />

In addition to the above, those Spanish<br />

UCITS Managers (“Sociedades Gestoras<br />

de Instituciones de Inversión Coleciva”)<br />

authorised to provide discretionary portfolio<br />

management service to individuals,<br />

must also join the FOGAIN. In this latter<br />

case, only those clients receiving that<br />

service will be covered by the FOGAIN.<br />

Consequently UCITS portfolios are not<br />

covered by the FOGAIN.<br />

<strong>The</strong> FOGAIN is founded basically with the<br />

contributions made on an annual basis<br />

by its members. In addition to that, the<br />

FOGAIN may arrange credit transactions<br />

with commercial banks and with the<br />

CNMV in the event it were necessary to<br />

attend payment needs.<br />

<strong>The</strong> FOGAIN is subjec to supervision by<br />

the Spanish securities markets regulator<br />

(the Comisión Nacional <strong>del</strong> Mercado de<br />

Valores or CNMV).<br />

For all current companies taht are covered<br />

by FOGAIN go to http://www.fogain.com/<br />

apartado/17


How can I tell if a lawyer is<br />

registered ?<br />

I will never forget the email I received which<br />

read ‘everything’s bound to be okay - we used<br />

the same asesor as the vendor’. Many British<br />

people engage the services of an asesor<br />

in the mistaken belief that they are dealing<br />

with a professionally qualified and regulated<br />

person. In actual fact the term ‘asesor’<br />

means no more than someone who assesses<br />

paperwork. Anyone can use the term asesor,<br />

print business cards and start trading. <strong>The</strong><br />

risks involved in using an unqualified person<br />

who is also acting for buyer and seller are<br />

obvious. <strong>The</strong> terms ‘solicitor’ and ‘abogado’<br />

are restricted however and must not be used<br />

by an unqualified person. It will come as no<br />

surprise to learn that I have had dealings with<br />

a number of costa blanca advisers claiming<br />

to be solicitors who are not qualified at all.<br />

Impersonating a solicitor in the UK is a<br />

criminal offence and carries heavy penalties.<br />

It will be some time before the same sanctions<br />

are imposed here in Spain although one can<br />

at least check to see whether a person is<br />

qualified before instructing them.<br />

If the person you are dealing with calls him<br />

or herself a ‘solicitor’ this means that they<br />

need to be registered with the Law Society<br />

of England & Wales and hold a current<br />

practising certificate. It is very easy to check<br />

someone out as the Law Society will confirm<br />

a person’s status over the telephone (call 00<br />

44 207 242-1222 and ask for records) or go<br />

to the Law Society’s website www.lawsociety.<br />

org.uk and click on ‘Find a <strong>Sol</strong>icitor’. If your<br />

advisor is an ‘abogado’ this means that he<br />

www.costa-action.co.uk<br />

or she will need to be registered with their<br />

local law society known as the ‘colegio de<br />

abogados’.<br />

Each abogado will have their details printed<br />

in a book called ‘Guía de Abogados’ which<br />

lists all registered abogados.<br />

I trust the above is clear although please feel<br />

free to give myself or Carlos Baos a call at<br />

any time on +34 966-426-185 if you wish to<br />

discuss the above or any other issues.<br />

Marc White LL.B. (English <strong>Sol</strong>icitor)<br />

C/Diana 19, 2º-D, 03700 Dénia<br />

(located at the Glorieta Square end<br />

of Marques de Campo)<br />

© White & Baos 2008 – All rights<br />

reserved<br />

7


ews... news... news...<br />

CAUTION<br />

This company is aggressively marketing the<br />

cash busting of UK Pensions in Spain.<br />

This is a highly dangerous practice and could<br />

lead to severe financial penalties for UK<br />

pension fund holders. <strong>The</strong>y are also making the<br />

same sort of claim that Henry Woods and others<br />

have made over the years in respect<br />

of promised rates of return.<br />

It is a nonsense to suggest that they can<br />

provide 9% GUARANTEED....this will mislead<br />

investors as they will not get anywhere near this<br />

return and by the time that they find this out, it<br />

will be too late to change the pension back<br />

to its original format.<br />

<strong>The</strong> actions that are being promoted i.e. busting<br />

100% to cash, could lead to a great big tax<br />

charge for unwitting investors.<br />

Wealth Intelligence Network SL<br />

Centro Commercial Lidl<br />

Ctra. de Cadiz N340 Km 196<br />

Sitio de Calahonda,29649, Mijas <strong>Costa</strong><br />

Malaga, Spain.<br />

Tel: +34 952 933 983<br />

Email: sales@enjoyyourpension.com<br />

http://www.enjoyyourpension.com<br />

This company is NOT regulated in Spain<br />

You will not have any regulatory protection for<br />

your hard earned money.<br />

We suggest that you look elsewhere!<br />

OR Talk to us.<br />

8 www.costa-action.co.uk<br />

<strong>The</strong>se are some of the key<br />

problems with their advice<br />

1 <strong>The</strong> transfer into cash will give rise to a<br />

tax bill in Spain on the full amount received.<br />

<strong>The</strong>re is no tax free lump sum exception in<br />

Spain, unlike the UK<br />

2 By transferring the pension into cash, it<br />

brings the funds into the ambit of Spanish<br />

succession tax (SST), whereas by leaving it<br />

in the pension trust it remains outside of SST<br />

3 <strong>The</strong> pension busting will lead at the best<br />

to the advisers pension busting route being<br />

closed down by the UK HMRC, and at worst<br />

a tax liability of up to 82% from the UK HMRC<br />

because the pension was not truly exported<br />

into an qualifying registered overseas<br />

pension scheme (QROPS) but instead it<br />

was known from the outset that the pension<br />

would be busted and the QROPS was simply<br />

a stepping stone. Nothing can enrage HMRC<br />

more. <strong>The</strong> UK tax authorities have full powers<br />

to collect any sums due throughout Europe,<br />

so don’t think that this tax liability can’t be<br />

collected just because you live in Spain.<br />

Indeed, HMRC could look to take criminal<br />

proceedings on the basis that the documents<br />

completed to transfer the funds to a QROPS<br />

were fraudulent given the preplannned real<br />

intention of busting the pension, and the new<br />

EU extradition laws now implemented in the<br />

UK allow you to be arrested wherever you are<br />

in the EU and extradited you to the


news... news... news..<br />

UK to face trial. You could face an 82% tax<br />

charge which cannot be offset against a<br />

Spanish of 43%, so there is a total charge<br />

potentially of 125% ! <strong>The</strong> UK/Spain Double<br />

Tax Treaty has no clear provisions allowing<br />

the penalty taxes levied in the UK against<br />

the transfer to be offset against the Spanish<br />

tax liability. It may also take a while before<br />

the UK tax problem surfaces, when you will<br />

have paid the Spanish tax in an earlier tax<br />

year. <strong>The</strong> Spanish tax authorities are unlikely<br />

to re-open the earlier tax year and make any<br />

refunds. (If you have ever tried to get a refund<br />

from the Spanish tax authorities for overseas<br />

tax paid in a later tax year, you will appreciate<br />

the problem)<br />

Increasing numbers of Equity Release<br />

(ER) victims are asking the <strong>Costa</strong> Del<br />

<strong>Sol</strong> <strong>Action</strong> <strong>Group</strong> for help as big name<br />

banks hammer on their doors for cash.<br />

Some victims in their seventies and eighties<br />

are very simply desperate and do not know<br />

how they are going to cope or survive.<br />

Persuaded to “release some of the cash<br />

tied up in their property” they now find that<br />

the loans raised against their properties are<br />

set to destroy them financially.<br />

Said one: “I did not have a mortgage or<br />

any other kind of debt until nine months<br />

ago. Now I am facing bankruptcy”.<br />

To all concerned.<br />

Equity Release Nightmares<br />

www.costa-action.co.uk<br />

A couple of years ago I signed up for an Equity<br />

Release package from OMM. Although we had<br />

signed a form to go ahead we both had second<br />

thoughts and the following evening we searched the<br />

Internet for more information.<br />

Thankfully we came across your website and within<br />

minutes we had decided to cancel any further<br />

involvement with this Company.We subsequently<br />

received a few heavy e-mails and an extortionate<br />

legal bill,which we ignored,but eventually all went<br />

quiet.<br />

Reading the recent news regarding the banks<br />

involved and the problems facing hundreds of<br />

people made us extremely thankful for the hard work<br />

you put into highlighting these potential economic<br />

pitfalls.<br />

Many,many thanks.<br />

Jack and Anne<br />

Fortunately the <strong>Costa</strong> Del <strong>Sol</strong> <strong>Action</strong> <strong>Group</strong><br />

believes there is a way that ER victims can<br />

rescue themselves from this nightmare.<br />

<strong>The</strong> <strong>Group</strong> has a class action already in a<br />

Spanish court and our lawyers are confident<br />

we will win.<br />

If you have found yourself to be an ER<br />

victim, or the victim of any kind of bad<br />

financial advice on the <strong>Costa</strong>s, contact us.<br />

<strong>Costa</strong> Del <strong>Sol</strong> <strong>Action</strong> <strong>Group</strong><br />

Telephone: 952 884261 or 952112115<br />

email: info@costa-action.co.uk<br />

www.costa-action.co.uk<br />

9


ews... news... news...<br />

In the Criminal High Courts in Madrid<br />

(Audiencia Nacional)<br />

<strong>The</strong> Judge has instructed the Financial Services (CNMV) to take immediate action without limitation and<br />

investigate the following companies who are accused of trading unlawfully in Spain without Licences, and<br />

mis-selling. In the summing up the Judge stated that this could well have an effect on the economy of Spain).<br />

<strong>The</strong> case is still ongoing as at March 2009<br />

Colin McCready · Offshore Money Mangers · Christopher Labrow · Labrow International · Brewin & Dolphin<br />

John Findlater OBE · Linnco Europe Ltd<br />

Rock Financial Services Ltd (Closed down by the Gibraltar Financial Services)<br />

Donald Nott, Henry Woods Investment Management (Now Closed) · Neil Taylor · Allied International.<br />

Anglo International · Hansards Isle of Man · Charles Emmitt · Knights Insurance Brokers · Kevin White<br />

Although the present judgement is against those named in the action, subsequently other unregistered Independent<br />

Financial Advisors will also be named in the action with many large financial Product Providers held to be liable for<br />

supporting unlawful Financial Advisors.<br />

PRESS RELEASE<br />

ISLE OF MAN PUBLICITY STUNT<br />

Guernsey refuses compensation whilst the Isle of Man increases compensation to £50,000<br />

In time honoured tradition the Guernsey government refuse to pay compensation when financial<br />

products “go wrong” … this rejection will now include the 2,000 people who are unable to access<br />

their money in the island based subsidiary of Icelandic bank Landsbanki.<br />

Meanwhile on the Isle of Man around 10,000 people have accounts with the island based subsidiary<br />

of the Icelandic bank Kaupthing … and always eager to exploit any publicity opportunity the island’s<br />

government has pledged to use tax payer’s money to increase its compensation scheme from<br />

£15,000 to £50,000.<br />

<strong>The</strong> Isle of Man government conveniently forgets the hundreds of less news worthy pensioners who<br />

lost a considerable amount of their savings in the fraud involving the island based Premier Low Risk<br />

Fund Plc - an investment fund that published false claims to obtain, and retain, elderly people’s bank<br />

transfers. Both criminal offences.<br />

Compensating people who lose money in a legitimate bank is a publicity stunt considered more<br />

appealing to the Isle of Man government than the honourable task of compensating the elderly<br />

victims of the Premier Fund.<br />

Lesson: Never invest a single penny in the Isle of Man, Guernsey or Jersey.<br />

10 www.costa-action.co.uk


news... news... news..<br />

BEWARE DAVID VANCE IS BACK<br />

After working for Henry Woods a firm that was illegally operating here in Marbella and has<br />

a criminal court case pending in Madrid, he broke away to further the misery of mis-selling<br />

investments. This man has caused untold suffering and loss of wealth to the many investors<br />

who through him invested in Viatical contracts at that time being sold by the Mutual Benefits<br />

Corporation of America. <strong>The</strong>se contracts in themselves were suspect as they were dealing<br />

with the insurable lives of the critical and terminally ill policy holders. <strong>The</strong> investor was<br />

gambling on the amount of time that these poor people had left to live.<br />

Not surprisingly the Mutual Benefits Corporation filed for banruptcy and the many clients of<br />

David Vance lost their money.<br />

We at the CDSAG believe that a leopard never changes it’s spots and so our advice is to<br />

stay well clear!!<br />

A good reason for a weak £?<br />

<strong>The</strong> UK Treasury have pumped some 1.3 trillion pounds into the failing banks in an attempt<br />

to restore lending.<br />

Since Northern Rock, Bradford and Bingley, HBOS, Lloyds TSB and now RBS, the debt per<br />

UK citizen is £23,500. This enormous debt is because of the government’s commitment to<br />

keep the banks alive regardless of costs.<br />

<strong>The</strong> irony is that RBS have recently lent three times more to overseas businesses than to<br />

UK companies.<br />

This enormous gamble is the greatest public investment since the war. Analyst believe that<br />

in the end, £250 billion of the £1.3 trillion will be lost for ever.<br />

If you think that we are<br />

doing a good job and you<br />

would like to join us<br />

please contact:<br />

JohnP@costa-action.co.uk<br />

You will require some spare time,<br />

a computer and a good ear to<br />

listen with.<br />

www.costa-action.co.uk<br />

FINANCIAL<br />

ADVISORS<br />

DO YOU WANT TO ADVERTISE<br />

IN THIS MAGAZINE?<br />

FOR FURTHER INFORMATION<br />

APPLY TO:<br />

TEL: 952 884 261 or<br />

Email: info@costa-action.co.uk<br />

Website: www.costa-action.co.uk<br />

11


Danger – Equity Release!!<br />

<strong>The</strong> <strong>Costa</strong> Del <strong>Sol</strong> <strong>Action</strong> <strong>Group</strong> (CDSAG)<br />

has been fighting on behalf of fraud victims for<br />

almost six years. It is dedicated to exposing<br />

the perpetrators of fraud and bringing them to<br />

task as well as doing everything possible to<br />

see that victims are compensated. <strong>The</strong> <strong>Group</strong><br />

has endured some ‘interesting times’ recently<br />

but is happy to report that it has grown<br />

stronger, wiser and even more focussed in its<br />

determination to achieve positive results for<br />

its members. One of the <strong>Action</strong> <strong>Group</strong>’s major<br />

concerns at the moment is the proliferation of<br />

Equity Release (ER) schemes on the Coast<br />

which have often been a disaster for those<br />

who have participated. <strong>The</strong> <strong>Action</strong> <strong>Group</strong><br />

has discovered that a number of these<br />

schemes have involved criminality. Bearing<br />

in mind the average age of the participants<br />

of the ER schemes is over 70, many of the<br />

schemes have amounted to abuse of the<br />

elderly and robbing the aged of their life<br />

savings. <strong>The</strong> CDSAG is trying its hardest to<br />

assist such people regain not only their home<br />

unencumbered of debt but also compensation<br />

from the producers of such schemes.<br />

<strong>The</strong> stress and worry that these schemes<br />

have caused has been too much for people<br />

who should be taking life easy to bear. One<br />

case reported to us was of a person almost<br />

starving and not knowing which way to turn.<br />

<strong>The</strong>re has even been the fear of suicide<br />

where an elderly victim was too ashamed to<br />

tell their partner that their home was now at<br />

risk. <strong>The</strong> CDSAG stresses that victims should<br />

feel no shame at having been caught out by<br />

12 www.costa-action.co.uk<br />

these slick conmen. <strong>The</strong> perpetrators of these<br />

schemes are in many instances highly skilled<br />

and seemingly professional and trustworthy<br />

businessmen. Such con-artists can take the<br />

most wary of us off our guard.<br />

<strong>The</strong> CDSAG has found that up-front charges of<br />

up to 29% have been imposed in some cases<br />

(the norm being around 8%). <strong>The</strong> invested<br />

cash element of these schemes is required<br />

to service the mortgage debt. However, being<br />

invested in disastrous funds in emerging<br />

markets and the like (these dodgy bonds<br />

paying higher commissions to the financial<br />

advisors). This capital return could no way<br />

make enough to support the 100% mortgage,<br />

let alone provide the promised income. <strong>The</strong>se<br />

schemes were in the main commission-driven<br />

schemes offered by unqualified, unregistered,<br />

heartless, smooth talking, cowboy salesmen.<br />

’Which’ the consumer body, (read their article<br />

on page 19) recently concluded that an Equity<br />

Release scheme has to be the extreme last<br />

resort for people requiring a boost to their<br />

income.<br />

<strong>The</strong> CDSAG lawyers are currently taking a<br />

criminal action of fraud against not only the<br />

participating banks but also the introducers of<br />

these schemes.<br />

If anyone is in any doubt or requires further<br />

information please contact us by tel. John<br />

Parsons on 952884261, Brian Douglas on<br />

952112115 or through our website www.<br />

costa-action.co.uk


BLACK CLOUDS AND<br />

SILVER LININGS<br />

<strong>The</strong> rain in Spain is falling on just about everyone.<br />

It is apparent that the planet is suffering a crisis<br />

not experienced in many decades. For most of<br />

us our main concerns lie closer to home. Here<br />

in Spain, our families, homes, finances and of<br />

course, our health. <strong>The</strong>se are the issues which<br />

have a direct impact on our everyday lives. For<br />

example, Sterling, which for many years has been<br />

a safe and stable currency has recently weakened<br />

against the Euro and other currencies, raising the<br />

cost of living and has most expatriates wondering<br />

how they will cope. Let us find ways to adapt. Let<br />

us take a look at the black clouds and better still<br />

the silver linings.<br />

It is now time to take the bull by the horns and<br />

take control of our lives and finances. Surely now<br />

is the time to bring to an end the “feeding of the<br />

fat cats” on the <strong>Costa</strong> <strong>del</strong> <strong>Sol</strong>. Let us stop paying<br />

extortionate and unfair fees for services provided.<br />

For example, the costs involved in buying or<br />

selling our properties, our yearly tax declarations,<br />

taxes due, making or changing a will, the<br />

additional expense of the unwarranted exchange<br />

of our European driving licences for the Spanish<br />

version. It is our obligation to inform ourselves<br />

and put an end to the misinformation which<br />

results in unnecessary tasks and expenditure. It<br />

is time to assess the present perturbing situation<br />

and start asking questions. When advising our<br />

members, I find myself constantly repeating “seek<br />

legal advice, and then double check that advice”<br />

Is it not enough that we have assisted in building<br />

up the economy in our adopted home without a<br />

few of the professionals on the <strong>Costa</strong>, both local<br />

and foreign alike seeing us as a way to make a<br />

quick shilling? I have listed a few things that we<br />

can do immediately to manage our finances and<br />

in turn take command of our lives.<br />

We ought to insist that all Sterling transferred<br />

www.costa-action.co.uk<br />

to our Spanish accounts be at a business or<br />

commercial rate. No charges or commissions<br />

whatsoever on the transfer on pensions. Further<br />

saving can be made by talking to your bank<br />

director. Tell him that you have been offered an<br />

account elsewhere free of charges. You require<br />

the same agreement otherwise you will transfer<br />

your account elsewhere. This will not be an empty<br />

threat; I personally know banks where this type<br />

of banking is a reality. Time to put behind us the<br />

loyalty we feel towards our service providers, your<br />

duty is to you and your families. Consider the<br />

possibility of increasing your income by moving<br />

your investments and opening a sterling account<br />

here in Spain where the interest rates are greater.<br />

<strong>The</strong>re are banks who will not charge you to move<br />

your funds to Spain. Be wise in your choice of<br />

bank. Shop around as the interest offered on<br />

savings varies. Do not let the banks dictate to you,<br />

it is your money.<br />

It has now become more expensive to shop. Look<br />

around there are bargains to be had. A number of<br />

restaurants are reducing the prices on their menus.<br />

If your favourite restaurant has no new offers,<br />

its time for a change and to try out somewhere<br />

cheaper. You may enjoy the variation.<br />

All pensioners sixty five and over are entitled to<br />

their tarjeta sesenta cinco. This card entitles you<br />

to cut price glasses, hearing aid equipment, free or<br />

reduced prices into museums theatres and places<br />

of interest, free travel, and reduced hotel prices in<br />

all areas of the Iberian peninsular.<br />

Home nursing care is also available at no cost.<br />

Respite homes are set up for short stay to allow<br />

partners who are acting as carers to recharge<br />

their batteries. You can be assured that some of<br />

these homes are like hotels. This could be a lovely<br />

way to enjoy a free holiday.<br />

13


<strong>The</strong> IBI (rates) have increased considerably due<br />

to the revaluation of the valor catastral. On paper<br />

this has increased the value of your property which<br />

means that all payments based on your house<br />

value will also increase. Some examples include<br />

our yearly tax, rates, rubbish and plus valia when<br />

you sell your property. This includes inheritance<br />

tax. We should learn how to scrutinize all the<br />

reductions possible. An example of this is the<br />

possibility of non-payment of the plus valia and the<br />

exemptions from inheritance<br />

tax. Unfortunately this tax is<br />

one of the most distressing,<br />

especially on what is a sad<br />

occasion with the loss of a<br />

partner. When you are at<br />

your lowest you trustingly<br />

follow the system and may<br />

find that you are either being<br />

overcharged or worse still<br />

not advised that you may be<br />

totally exempt from this costly tax. <strong>Costa</strong> Advice<br />

Bureau with the assistance of our reliable fiscal<br />

representative have recently had to deal with<br />

various inheritance tax cases and happily were<br />

able to advise the inheritors that there was no tax<br />

due. IF this issue is not handled with expertise,<br />

residents and non residents alike are handed a<br />

substantial bill from the tax authorities.<br />

Insurances. Some of the insurances that banks<br />

insist on when taking out a mortgage are not a<br />

legal requirement. Saying this check your home<br />

insurance and what it covers. We are presently<br />

trying to assist a family avoid a 1.300€ bill given<br />

to them when the local Estepona fire brigade<br />

had to enter a property due to the owner having<br />

had a bad fall. Unfortunately this resulted in her<br />

death. Her insurance did not cover the expense of<br />

calling out the brigade. Consider giving a friendly<br />

neighbour a spare front door key. This will also<br />

avoid the expense of calling out a cerrajero when<br />

you accidently lock yourself out. This is not the<br />

UK where the friendly fire brigades respond to a<br />

call out to bring down kitty from a willow tree.<br />

14 www.costa-action.co.uk<br />

Endesa the electricity board has recently<br />

increased their charges and decided on monthly<br />

billing systems which as so many of us are aware<br />

has resulted in the miscalculation of invoices.<br />

This is sometimes to your advantage but more<br />

than often not. <strong>The</strong> bad news was that if we had<br />

been overcharged and had not made a claim to<br />

Endesa we would not be reimbursed. <strong>The</strong> silver<br />

lining; the autonomous government has recently<br />

ruled that everyone should be reimbursed whether<br />

or not a claim has been put<br />

forward to the company. So<br />

please keep and eye on<br />

your facturas and your meter<br />

readings.<br />

With the high costs of<br />

telephone calls, some<br />

pensioners have the right for<br />

reduction on their monthly<br />

bills.<br />

In spite of all the advice given, should you be<br />

unfortunate enough to discover that after spending<br />

the last ten years as a resident, exhausted your<br />

savings and are considering returning to the UK<br />

because you do not have pension. Do not despair<br />

you may be entitled to a non contributory Spanish<br />

pension.<br />

When you have to realise any new transactions<br />

be it paying a bill, taking a neighbour to court,<br />

accepting a quote or making a new will, be aware<br />

and to coin a catchphrase, ‘’Look before you leap’’.<br />

Some examples are the writing up of documents,<br />

making a new will. Be aware when implementing<br />

any future transactions. To coin a catchphrase,<br />

“Look before you leap”<br />

Myra Azzopardi.<br />

www.costaadvicebureau.com


Equity release is a last resort Property<br />

warning for elderly homeowners<br />

Pensioners struggling to make<br />

ends meet should only turn to<br />

equity release if there is no other<br />

option, warns ‘Care Options<br />

in Retirement’, a new Which?<br />

essential guide published today.<br />

With rising living costs and the<br />

increased cost of long term care,<br />

equity release may seem like the<br />

answer to financial problems faced<br />

by people after retirement.<br />

But equity release schemes can be<br />

very expensive, inflexible and leave<br />

people with little or no equity in their<br />

home, severely limiting their choices<br />

later in life. Any money released from<br />

these schemes may also affect the<br />

amount of means tested benefits<br />

people are entitled to.<br />

Equity release<br />

Major problems arise when borrowers’<br />

circumstances change. For example,<br />

someone wanting to move to<br />

sheltered housing or a retirement<br />

home may have to repay some of the<br />

loan earlier than expected, potentially<br />

leaving too little equity to buy the<br />

new property. <strong>The</strong>re can also be high<br />

charges for early redemption.<br />

‘Care Options in Retirement’<br />

recommends that before turning<br />

to equity release people first<br />

consider downsizing to a cheaper<br />

www.costa-action.co.uk<br />

property, use existing savings, or<br />

even borrow from family who can<br />

be paid back when the property is<br />

eventually sold. People struggling<br />

with finances should also check<br />

their eligibility for state benefits or<br />

grants to assist with the cost of living.<br />

Philip Spiers, co-author of ‘Care<br />

Options in Retirement’ says: ‘Equity<br />

release might seem like the solution<br />

for any pensioners struggling to make<br />

ends meet this winter. <strong>The</strong>se schemes<br />

provide income while enabling you to<br />

stay in your own home.<br />

Advice on equity release<br />

‘However, if your circumstances<br />

change you might not have enough<br />

money remaining to fund alternative<br />

accommodation, and money received<br />

through equity release may seriously<br />

alter the amount of benefits you are<br />

able to collect.<br />

‘Anyone considering equity release<br />

should do so cautiously – and only<br />

after exhausting other options. In<br />

all cases, independent, professional<br />

advice should always be sought.’<br />

15


Equitable Life....the story so far<br />

I find it hard to believe that EMAG Europe is now over six months old, has<br />

a membership of 153 policyholders spread across 13 different countries.<br />

I was asked in mid July 2008 to set up an expatriate group of EMAG to<br />

augment and further support the main thrust back in the UK. This begun<br />

on the 1st August 2008.<br />

<strong>The</strong> support of our membership has been excellent with members lobbying<br />

both their MP back in the UK and their European Parliament MP for their<br />

support. Members have added their signature to various petitions and<br />

again also lobbied their MPs to support various EDMs and of course the<br />

PASC set up to investigate and support the search for the truth into the<br />

near collapse of Equitable Life back in 2000 which has already had many<br />

meetings and is generally very supportive of EMAG.<br />

Besides getting the support of the European Parliament and a damning<br />

report by the Government’s Ombudsman Ann Abraham quoting gross<br />

maladministration, together with the support of the PASC, the Government<br />

has appointed retired judge Sir John Chadwick into deciding who does<br />

and who does not qualify for compensation. On the face of it very few<br />

people would qualify and they would most likely have to face the degrading<br />

and humiliating experience of being means tested which just isn’t on. <strong>The</strong><br />

appointment of Chadwick is being contested by EMAG.<br />

This stance by the Government is just not on and although it may have<br />

seemed that EMAG has been very quiet over the past couple of months<br />

there have been many meetings between them and their solicitors which<br />

should result very shortly in the announcement of very positive news in<br />

favour of all types of Equitable Life policyholder. It is the belief of EMAG<br />

that all policyholders are the same and should be treated that way.<br />

What can us the policyholders do? We wait for the announcement from the<br />

from the main EMAG board and we then all give them our full one hundred<br />

per cent support in fighting the recent decision of the UK Government<br />

which still continues, after nearly ten years, to discriminate against us the<br />

long suffering Equitable life policyholders.<br />

So far more than 30,000 pensioners have died waiting for justice. We seek<br />

proper compensation not a means-tested handout.<br />

16 www.costa-action.co.uk


Prima Capital Guaranteed<br />

Investment Fund<br />

Introduction<br />

Prima purport to provide a guarantee of<br />

100% of the capital, but obtain a return by<br />

investing in trading securities, warrants,<br />

rights issues, bonds, traded options,<br />

derivatives, contracts for differences,<br />

commodities, foreign exchange and<br />

“short term venture capital projects” and<br />

other hedge funds.<br />

Kevin Scott is the CEO and they state<br />

that the average returns for the past few<br />

years have been just under 25% p.a. We<br />

cannot find any independent evidence<br />

that substantiates this claim. <strong>The</strong>re is no<br />

clear explanation of how the guarantee is<br />

provided. As this arrangement purports<br />

to provide a 100% guarantee of invested<br />

capital no-one should proceed without<br />

understanding how the guarantee is<br />

provided and in particular who the<br />

guarantor is an in what circumstances it<br />

applies.<br />

If for example, the guarantee is provided<br />

by a bank investors will need to know<br />

the likelihood, or otherwise, of the bank<br />

meeting their obligations under this<br />

arrangement.<br />

Many investors in products guaranteed<br />

by Lehman Brother have lost their entire<br />

investment due to the failure of the<br />

bank.<br />

<strong>The</strong> address is Suite 35, 235 Earls Court<br />

Road, London SW5 9FE - Telephone<br />

020 7043 0941.<br />

Prima Private Capital Ltd was<br />

incorporated on 29th May 2008 and has<br />

the same address as 235 Earls Court as<br />

www.costa-action.co.uk<br />

its<br />

registered<br />

office and with<br />

Kevin Scott as<br />

founding company secretary. It is<br />

described at Companies House as<br />

“active”.<br />

No accounts have been filed.<br />

See also www.primaprivateclient.com.<br />

<strong>The</strong> web site states that the Registered<br />

Office of Prima Private Capital<br />

(London) is 60 Market Square, 60 Belize<br />

city, Belize has been used as a location<br />

for a number of frauds in the past.<br />

Neither the website nor advertisements<br />

state that they are authorised, as is<br />

required by law. <strong>The</strong>refore one can<br />

conclude that they are either not<br />

authorised, or if they are authorised they<br />

are unaware of their obligations under<br />

the EU Financial Services Laws.<br />

<strong>The</strong>ir claims to make returns of some<br />

25% with a 100% guarantee are simply<br />

too good to be true, in our opinion.<br />

<strong>The</strong> investments that they refer to are<br />

very high risk, and do not come with<br />

guarantees unless there are considerable<br />

associated costs, which would always<br />

limit the return significantly.<br />

One to stay well clear of.<br />

http://www.primaprivateclient.com/<br />

contact.php<br />

17


Spain enters recession<br />

Figures today have revealed that Spain’s<br />

economy is in recession for the first time<br />

since 1993.<br />

Official figures from the Bank of Spain<br />

said Gross Domestic Product fell 1.1% in<br />

the last quarter of 2008, which followed<br />

on from a 0.2% decline in the previous<br />

quarter.<br />

<strong>The</strong> euro zone, as a whole, entered<br />

recession in November and Spain follows<br />

Germany who entered recession late last<br />

year.<br />

Spain has the highest unemployment rate<br />

in the European Union, with 13.9% of the<br />

workforce out of a job.<br />

Orchid Financial Services Ltd.<br />

INDEPENDENT FINANCIAL ADVISERS<br />

Credit Crunch Biting? Cashflow Suffering?<br />

Release Tax-Free Cash From Your Pension –<br />

Did you know that you could release a tax-free cash sum from your pension now without taking your pension income. <strong>The</strong> cash can be used for any<br />

purpose including paying off personal debt.<br />

You can do this if you are 50 or over now, but in April 2010 this will rise to age 55! Those who may need cash in the next few years who will be<br />

under age 55 in April 2010 need to act now.<br />

WHAT IS PENSION RELEASE?<br />

Pension Release, also known as an Unsecured Income Plan, is a flexible alternative to purchasing an annuity. If you are over 50 and have a suitable<br />

amount in your pension fund, you can release a tax-free cash lump sum without having to retire or take an income. You can also take regular<br />

income withdrawals but these are taxable. Any remaining fund continues to be invested until retirement. Pension Release is not suitable for everyone<br />

and other ways of raising capital should always be considered. Unlocking your pension will reduce the value of your pension plan at retirement.<br />

Advice hotline : +44 1733 271149<br />

Orchid Financial Services Ltd is an appointed representative of LJ Financial Planning Ltd who are authorised and regulated by the Financial Services Authority.<br />

Orchid Financial Services Ltd is Registered in England. Registered Number 5509898 Registered Office - Thorney Lakes, English Drove, Peterborough, UK PE6 0TJ.<br />

www.orchidfinancialservices.com<br />

18 www.costa-action.co.uk<br />

<strong>The</strong> Spanish economy, which is the fourthlargest<br />

in the euro zone, has been one<br />

of the healthiest in Europe over recent<br />

years but rising unemployment and the<br />

financial crisis have had an impact.<br />

Furthermore, the Bank of Spain’s<br />

latest labour figures revealed that that<br />

unemployment grew by 3% in the last<br />

quarter.


Unauthorised by Direcion de Seguros<br />

CHECK THEM OUT BY PHONE THEY SPEAK ENGLISH<br />

Dirección General de Seguros y Fondos de Pensiones<br />

Paseo de la Castellana, 44, 28046 Madrid<br />

Teléfono: 91 339 70 00 - Fax: 91 339 71 13<br />

telefonista.mediadores@meh.es<br />

ALFER RISE SL<br />

AGRUPACION DE CAPITALES<br />

AMERICAN BRITISH INSURANCE LTD<br />

CARONTE GROUP NETWORK SERVICES SA<br />

CLUB AUTOMOVILISTICO GALLAECIA SL<br />

CREGO SERVICIOS INTEGRADOS DE DISTRIBUCION<br />

CASVI CORREDORES ASOCIADOS DE VIGO SA<br />

COBERTURA ASISTENCIAL DEPORTIVA SL<br />

COMPAGNIE DES GARANTIES DE LUXEMBURG SA<br />

CORSA FINANC E LTD<br />

DES GARANTIES SA<br />

COMPAGNIA DI CAUZIONI<br />

EDWARD WILLIAM MARINE SERVICES<br />

EUROCAUCION DLEUROCAUCION LEVANTE SL<br />

EUROPEAN COMPANY OF GUARANTEE<br />

EUROPA CAUZIONI SPAGABINETE PREVENTIVO DE MEDICINA<br />

DEPORTIVAGARANCAR SA<br />

GENERAL FIDI CONSORCIO GARANTIA FIDI<br />

GESTION DE SERVICIOS ACTUARIALES SL<br />

GRAVITELL INSURANCE BROKERS SL<br />

GRAVITELL LIMITED<br />

GRAYDON & ASSOCIATES SL<br />

www.costa-action.co.uk<br />

HENRY WOODS ASS SL<br />

HENRY MORTIMER PLC<br />

HUGIES ROYAL FINANCE CORPORATION<br />

IBERSHMAMMROCK SL<br />

ITALFINANZIARIALAURENS INSURANCE LTD<br />

LOPEZ SEGUROS INTERNATIONAL INSURANCE<br />

MEMORIAL EXEQUUIAS INTERNACIONAL SL<br />

MERRION REINSURANCE CO LTD<br />

MUTUELLE INTERNAZIONALE D ASSURANCES LA PARISIENNE<br />

MUTUELLE DE STRASBOURGTNORTHEREEF INSURANCE COONLY<br />

INSURANCE SL<br />

SECURE CONSTRUCTION LTD<br />

SEGUROS NOVA<br />

SERVICIO FINANCIER<br />

DE CAUCION SRLSPECIAL COBERAGE SLT<br />

SHAMROCK PROPERTIES OVERSEAS LTD<br />

SUNNY LUCKY SEGUROS<br />

SUGAVIA CORREDURIA DE SEGUROS SL<br />

SWISS FINANCIAL CORPORATION<br />

TEMPLETON INSURANCE LTD<br />

TIM LOCKE (GRAYDONS DENIER)<br />

TOP CLASS INSURANCEUNION GENERAL DE VALORES SA<br />

WARNING THESE PEOPLE ARE NOT<br />

REGULATED TO MEDIATE ON<br />

FINANCIAL MATTERS IN SPAIN!<br />

Asset Management Advisory Service Spain S.L.<br />

Atkinson Spanish Mortgages & Lawsons Equity<br />

CDS Invest<br />

Panoramic Financial <strong>Sol</strong>utions<br />

Graydon & Associates<br />

Morton <strong>Group</strong> Brokers<br />

Pegasus Financial Services Ltd<br />

Prima Guaranteed Investment Fund<br />

Project2invest<br />

Union of Credit & Finances (Javea)<br />

Wallace Church Associates<br />

Wealth Intelligence Network S.L.<br />

x<br />

19


Unauthorised by the CNMV<br />

list taken from the Spanish Financial Services website<br />

HENRY WOODS ASSOCIATES, S.L.<br />

CLEARING SERVICES<br />

VIA MANAGEMENT GROUP, S.A.<br />

MILLENNIUM FINANCIAL LTD.<br />

PACIFIC FEDERAL, S.A.<br />

FIELDING CLIFFORD<br />

MERCANTILEBANC INC.<br />

CARTER JAMES, S.L.<br />

LLOYDS AND ASSOCIATES LTD<br />

GOODMAN HART ASSOCIATES<br />

CHAMBERLIN MANAGEMENT INC<br />

CONDOR RESEARCH<br />

HAMILTON ASSET MANAGEMENT<br />

HOFFMAN PHILIPS, SL<br />

MORRISON CROSS FINANCIAL INVESTMENTS LTD<br />

UNION PARTNERS, SL (ANTES GOLDBERG KRAVITZ, SL)<br />

WALKER STONE<br />

WILLMONT PARTNERS, S.L.<br />

AINSLEY CONSULTING, S.L.<br />

ALLIED INTERNATIONAL, S.A.<br />

ARGUS GLOBAL EQUITIES LTD<br />

BID-MIDEX, S.L.<br />

BULLSTRADING, S.L.<br />

CAPITAL GROWTH EQUITIES, S.L.<br />

FRASER, LINDHART AND WEBB PLC (NOMBRE COMERCIAL TRIDENT<br />

MARKET ADVISERS)<br />

FX MIDEX, S.L.<br />

FX BIDMIDEX, S.L.<br />

LIDORAL, S.L.<br />

GRAVES, STANLEY & PEABODY LTD<br />

GREAT BRITISH INVESTORS, S.L.<br />

GREEN-GO TRADING, S.L.<br />

HAYES VANDERBUILT INVESTMENT, S.L.<br />

INTERSTATE FINANCIAL GROUP, S.L.<br />

CIL, S.L.<br />

MARTIN & ASSOCIATES<br />

To check all the current Authorised/Unauthorised list go to:<br />

http://www.cnmv.es/inversores/eng/index.htm?con_ad_avisos.html~cautions2<br />

Comision Nacional <strong>del</strong> Mercado de Valores<br />

www.costa-action.co.uk<br />

MEDITERRANEAN INVESTMENT GROUP, S.L.<br />

CAPITAL ADVISERS BULL & BEAR, S.L.<br />

BULL & BEAR<br />

MIG DIRECT<br />

MULTITRADING 2002, S.L.<br />

SMITH & HENDERSON ASSOCIATES INC<br />

TAYLOR ATLANTIC LTD<br />

JT STRAUSS ADVISORY, S.L.<br />

MERCANTILE SECURITIES CONSULTANTS, S.L.<br />

NOVAK & GOODE, S.L.<br />

BODEGON CENTER, S.L.<br />

LIBERTY FIRST FINANCIAL SERVICES<br />

MENDORO<br />

IBS INTERNATIONAL<br />

SHARP EDGER BUILDING, S.L.<br />

HARGREAVES GROUP, S.L.<br />

ADDA MANAGEMENT, S.L.<br />

WWW.SENSIBLEOPTIONS.COM<br />

CROZIER FINANCIAL SERVICES SPAIN, S.L.<br />

KROMIR XXI, S.L.<br />

ALLIED SOVEREIGN ZURICH, S.L.<br />

MUTUAL CAPITAL<br />

RAYMOND LLOYD & ASSOCIATES CONSULTING LTD<br />

NETWORK CAPITAL PARTNERS, S.L.<br />

SOLOMON CHRISTIE LLC<br />

PACIFIC CONTINENTAL SECURITIES EUROPEAN<br />

ADMINISTRATION, S.L.<br />

WINDSOR ADVISORY SERVICES, S.A.<br />

WINDSOR INVESTMENT LTD<br />

CRANLEY & ASSOCIATES S.L.<br />

FORNIX 2000 PLUS, S.L.<br />

MORGAN PARIS & COMPANY<br />

GOLDBERG KRAVITZ, S.L.<br />

PITSBURG TRADE, S.L.<br />

<strong>The</strong> CDSAG unreservedly apologise for mistakingly noting that<br />

Jennifer Cunningham & Assoc. S.L. were<br />

‘Unauthorised’ in our last issue.<br />

<strong>The</strong>y are of course regulated by the DGS.<br />

x<br />

21


x<br />

Unauthorised by the CNMV<br />

list taken from the Spanish Financial Services website<br />

PESMIR TRADING, S.A.<br />

BANCO DE PESMIR TRADING<br />

FERNANDO JUAN CASTAGNO SCHICKEDANZT<br />

FERNANDO MARTÍNEZ GÓMEZ-TEJEDOR<br />

JANINE GÓMEZ SUÁREZ<br />

JUAN PABLO PASTORINI MATTOS<br />

WWW.PESMIRTRADING.COM<br />

SYSTEM WORLD INVESTMENT CORP. (DEXTRAPLUS)<br />

EVOLUTION MARKET GROUP INC (FINANZAS FOREX)<br />

JOSE MANUEL RAMIREZ MARCO<br />

ASSOCIACIO CORPORATIVA DEMPRESARIS IMMOBILIARIS<br />

WWW.GESTIONFOREX.COM<br />

CAPITAL MANAGEMENT SCHOTTS, S.L.<br />

ROBERT MITCHELL MCMILLAN ALLAN<br />

ATLANTIS FINANCIAL<br />

WWW.ATLANTIS-FINANCIAL.COM<br />

GCI FINANCIAL LTD<br />

CAPITAL RESOURCES SYSTEMS LTD<br />

WWW.GCITRADING.COM<br />

AKEMAN CAPITAL<br />

AKEMAN ALLAN CAPITAL<br />

WWW.AKEMANCAPITAL.COM<br />

TRIBU INTERNATIONAL INVEST, S.L.<br />

EVOLUTION MARKET GROUP INC (FINANZAS FOREX)<br />

GERMAN CARDONA SOLER<br />

SANTIAGO FUENTES JOVER<br />

GRAN CANARIA CONSULTORES Y ASESORES, S.L.<br />

HIBBER BOTHWELL CAPITAL PARTNERS<br />

WWW.HIBBER-BOTHWELL.COM<br />

EURO TRUST CAPITAL MANAGEMENT<br />

BROKER S SOCIETY SOCIEDAD DE GESTIÓN Y TRAMITACIÓN<br />

FINANCIERO ASEGURADORA, S.L.<br />

CORNHILL MANAGEMENT, S.L.<br />

WWW.CORNHILLMANAGEMENTSL.COM<br />

BR CONSULTANCE ALFAZ, S.L.<br />

BERKLEY WYATT ASSET LIMITED, S.L.<br />

WWW.BWASSET.COM<br />

WWW.BWASSET.ES<br />

REMINGTON YORK LTD.<br />

CISA MANAGEMENT, S.L.<br />

WWW.CISASL.ORG<br />

CISA, S.L., CORPORATE INVESTMENT SERVICES<br />

WWW.CISASL.ORG<br />

ADMINISTRACIONES TEMPLE BAR, S.L.<br />

BROOKFIELD PARTNERS, S.L.<br />

WWW.BROOKFIELD-PARTNERS.COM<br />

DAILY REPORT, S.A.<br />

PRICE-STONE GROUP, S.L.<br />

WWW.PRICESTONEGROUP.COM<br />

HARTFORD MANAGEMENT GROUP<br />

20 www.costa-action.co.uk<br />

WWW.GROUPHARTFORD.COM<br />

EAGLE STAR INTERNATIONAL GROUP<br />

H.S.F. IBZ, S.L.<br />

NEW WORLD FINANCIAL EUROPE, S.L.<br />

STRATFORD ADVISORY SERVICES<br />

STANDARD PROVIDENT INTERNATIONAL, S.L.<br />

MURRAYFIELD INVESTMENT MANAGEMENT, S.L.<br />

MORTON MANAGEMENT, S.L.<br />

ST. GEORGE EUROPE, S.L.<br />

MORGAN LYNCH<br />

VIP BRONZE, S.L.<br />

RICHMOND ROYCE ADVISORY SERVICES, S.L.<br />

SILVERSTONE MANAGEMENT, S.L.<br />

STRIKE SERVICIOS Y ASESORAMIENTO, S.L.<br />

MOLGAR BROKERS, S.L.<br />

MILLENIUM BUSINESS SERVICES, S.L.<br />

ALEXANDER ROTHKO AND ASSOCIATES LTD.<br />

WWW.ALEXANDERROTHKOASSOCIATES.COM<br />

ESICAMO, S.A.<br />

WWW.ESICAMO.COM<br />

BECKHAM ADVISORS ALLIANCE, S.L.<br />

EUROPEAN PRIVATE EQUITY CONSULTANTS, S.L.<br />

CHURCHILL PERSONAL INVESTMENTS<br />

CHURCHILL MARKETING AND ADVISORY SERVICES, S.L.<br />

LIBERTY FIRST ADVISORY SERVICES, S.A.<br />

CONSULTORES SICRA, S.L.<br />

COMMODITY & FUTURES CONSULTING, S.L.<br />

ANDERSON GOLDBERG, S.L.<br />

INTERNATIONAL EQUITY CONSULTANTS, S.L.<br />

INPROLINKS, S.L.<br />

THE PENSION AND INVESTMENT SHOP, S.L.<br />

MILLENIUM BUSINESS SERVICES, S.L.<br />

HARRINGTON ADVISORY SERVICES, S.L.<br />

RECOLETOS SERVICIOS DE ASESORÍA, S.L.<br />

TANA CORUM, S.L.<br />

CERXNET EUROPE, S.L.<br />

EUROPAISH BURO CONSULTANT, S.L.<br />

EUROPE BUSINESS CENTER, S.L.<br />

UNITED ROYALE IMMOBILIEN VERWALTUNG, S.L.<br />

TRESADERNS & PARTNERS, S.L.<br />

WWW.MARBELLASECURITIES.COM<br />

CARLTON CAPITAL MANAGEMENT LTD<br />

CARLTON BIRTAL ADVISORY SERVICES, S.L.<br />

CARLTON BIRTAL FINANCIAL ADVISORY, S.L.<br />

CARLTON FINANCIAL ADVISORY & INTERMEDIARY SERVICES<br />

CAPITAL MOVIMIENTO, S.L.<br />

CAP MOV ASESORES FINANCIEROS, S.L.<br />

AIM WARRANTS, S.A.<br />

ALTERNATIVE INVESTMENT MARKETS, S.L.<br />

PREMIER EQUITIES EUROPE, S.L.


x<br />

UNAUTHORISED Financial Advisors in Spain<br />

list taken from the Spanish Financial Services website (CNMV) www.cnmv.es<br />

Aim Warrants, S.A.<br />

Adda Management, S.L.<br />

Ainsley Consulting, S.L.<br />

Alternative Investment Markets, S.L.<br />

Allied International Independent Offshore Financial Advisers<br />

Allied International, S.A.<br />

Allied Sovereign Zurich, S.L.<br />

Argus Global Equities Ltd<br />

Bid-Midex, S.L.<br />

Bodegon Center, S.L.<br />

Brewin & Dolphin<br />

Bullstrading, S.L.<br />

Capital Advisers Bull & Bear, S.L.<br />

Cap Mov Asesores Financieros, S.L.<br />

Capital Growth Equities, S.L.<br />

Capital Movimiento, S.L.<br />

Carlton Birtal Financial Advisory, S.L.<br />

Carlton Capital Management Ltd.<br />

Carlton Financial Advisory & Intermediary Services<br />

Carlton Birtal Advisory Services<br />

Carter James, S.L.<br />

Cerxnet Europe, S.L.<br />

Chamberlin Management Inc.<br />

CII, S.L.<br />

Condor Research<br />

Cranley & Associates S.L.<br />

Crozier Financial Services Spain S.L.<br />

Hargreaves <strong>Group</strong> Novak & Goode, S.L.<br />

Europaish Buro Consultant, S.L.<br />

Europe Business Center, S.L.<br />

Fielding Clifford<br />

Fornix 2000 Plus, S.L.<br />

Fraser, Lindhart And Webb Plc (Nombre Comercial Trident<br />

Market Advisers)<br />

Fx Midex, S.L.<br />

Fx Bidmidex, S.L.<br />

Goldberg Kravitz, S.L.<br />

Goodman Hart Associates<br />

Graydon and Associates<br />

Graves, Stanley & Peabody Ltd.<br />

Great British Investors, S.L.<br />

Green-Go Trading, S.L.<br />

Hamilton Asset Management<br />

Hamilton Financial Services, S.L.<br />

Hansard International Ltd.<br />

Hayes Vanderbuilt Investment, S.L.<br />

Henry Woods Associates, S.L.<br />

Henry Woods Investment Management<br />

Hoffman Philips, S.L.<br />

Ibs International<br />

Interstate Financial <strong>Group</strong>, S.L.<br />

Jt Strause Advisory, S.L.<br />

Knights Insurance Brokers<br />

Kromir Xri, S.L.<br />

Labrow International<br />

Liberty First Financial Services<br />

Lidoral, S.L.<br />

Linnco Europe Ltd<br />

Lloyds And Associates Ltd<br />

Marbella Securities<br />

Martin & Associates<br />

Mediterranean Investment <strong>Group</strong>, S.L.<br />

Mendoro<br />

Mercantile Securities Consultants, S.L.<br />

Mercantilebanc Inc.<br />

Mig Direct<br />

Millennium Financial Ltd.<br />

Multitrading 2002, S.L.<br />

Morrison Cross Financial Investments Ltd<br />

Morgan Paris & Company<br />

Mutual Capital<br />

<strong>New</strong>ton Capital Partners, S.L.<br />

22 www.costa-action.co.uk<br />

Oib Offshore Investment Brokers<br />

Offshore Money Managers<br />

Pacific Continental Securities European Administration, S.L.<br />

Pacific Federal, S.A.<br />

Pension & Investment Shop<br />

Pitsburg Trade, S.L.<br />

Premier Equities Europe, S.L.<br />

Raymond Lloyd & Associates Consulting Ltd<br />

Sharp Edger Building, S.L.<br />

<strong>Sol</strong>omon Chrisite Ltd<br />

Smith & Henderson Associates Inc<br />

Taylor Atlantic Ltd<br />

Tresaderns & Partners, S.L.<br />

<strong>The</strong> Pension And Investment Shop, S.L.<br />

Union Partners, S.L. (Antes Goldberg Kravitz, S.L.)<br />

United Royale Immobilien Verwaltung S.L.<br />

Via Management <strong>Group</strong>, S.A.<br />

WARNING CDS INVEST ARE NOT REGULATED<br />

CDS-INVEST<br />

Avenida Alcalde Clemente Diaz Ruiz, 41 Fuengirola, Malaga 29640Spain<br />

ph: +34-952.593.333 fax: +34-951.239.211 alt: +34-627.351.720 www.cds-invest.com<br />

Extreme caution this company is illegal and what they are offering is extremely high risk.


AUTHORISED Financial Advisors in Spain 3<br />

Blacktower Financial<br />

Tel: 00 34 952 816 443<br />

Blevins Franks <strong>Group</strong><br />

Tel: +34 952 588 998<br />

Granville Gower<br />

Tel: (44) 1442 877884<br />

Kane Associates<br />

Tel: +34 95 124 7803<br />

Kevin Neal International<br />

Tel: (+34) 956 796 589<br />

Orchid Financial Services Ltd<br />

Tel: +44 1733 271149<br />

Telephone and Investment scams<br />

REMEMBER: IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!<br />

It sounds obvious, but if a stranger rings you out of the blue and tries to interest you in<br />

a particular investment which is very attractive - take great care.<br />

<strong>The</strong>y may be part of a financial scam using hard-sell tactics to persuade you to invest.<br />

If you invest without knowledge of the product or the company who is introducing the<br />

investment to you, then you could lose the whole investment. You may also have no<br />

rights to complain or claim compensation from the schemes as most of these scams<br />

are marketed by non-regulated companies.<br />

<strong>The</strong> first time you hear from such firms could be by telephone, post or email, or they<br />

might advertise their services over the internet. <strong>The</strong>y may also offer their product via<br />

the media which is not regulated here in Spain as in the UK.<br />

Always check the regulation registers to see if they are regulated and get a second<br />

opinion from a regulated source as this could save you losing all of your investment.<br />

If you are contacted by telephone and you are in doubt:<br />

· ask for the contact details of the person calling you; and<br />

· check their identity with the firm they claim to work for as they may be using a<br />

regulated source’s details to fool you.<br />

Don’t listen to excuses about the caller using a direct line – if the call is genuine<br />

a trustworthy firm won’t mind you being careful and resourceful! Report any<br />

suspicions to the firm and Contact us<br />

www.costa-action.co.uk<br />

Need An Adviser.com<br />

Tel: Spain 918 371 323 UK 0870 950 7788<br />

RTP Financial Services Ltd<br />

Tel: 966 786 684<br />

Siddalls<br />

Tel: 952 903 205<br />

TAG Wealth management<br />

Telephone: +34 966 774 777<br />

Mobile: +34 670 034 473<br />

<strong>The</strong> Spectrum IFA <strong>Group</strong><br />

Authorised by the Dirreción General de Seguros for insurance<br />

products but not by the CNMV for investments.<br />

Freephone: 900 80 81 81<br />

ADVICE TO READERS. While this magazine is checked for accuracy, we are not liable for any incorrect information included. We recommend that<br />

you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions.<br />

23


Spanish Inheritance Tax<br />

and Income Release Scheme (SITIRS)<br />

During the winter of 2004/2005, Churchill<br />

Personal Investments began to promote the<br />

above scheme to their clients, via their quarterly<br />

“Financial Focus” publication and their Personal<br />

Consultants, or “Advisers”. A depressing picture<br />

was painted of the likely Spanish inheritance tax<br />

bill, which a surviving spouse would face on the<br />

death of his / her husband / wife, if the ownership<br />

of a Spanish property was involved. This would be<br />

even worse if the couple were unmarried.<br />

In Churchill´s Winter 2004, Issue 34, Financial<br />

Focus, in an article entitled “<strong>The</strong> IHT <strong>Sol</strong>ution”,<br />

the following was claimed. “We will now highlight<br />

a fairly simple strategy that can dramatically<br />

reduce this tax liability. <strong>The</strong> best solution is often<br />

to reduce the net value of your property in Spain.<br />

This is because the tax is levied on the actual value<br />

less deductible charges, debts and expenses.<br />

<strong>The</strong>refore, if a “charge” (loan) is legally registered<br />

against the property(ies), then the outstanding<br />

amount would be deducted from the value<br />

before arriving at the net amount subject to tax.<br />

If the released capital is invested in a tax-efficient<br />

investment vehicle, this can dramatically reduce<br />

the liability to Spanish inheritance tax. In this light<br />

there has been considerable development work<br />

undertaken with many international banks, and<br />

a number of schemes have been launched over<br />

the last year or so. In our opinion, many of these<br />

have serious drawbacks, but a recent launch<br />

has addressed these failings and provides an<br />

excellent solution. <strong>The</strong> Spanish Inheritance Tax<br />

and Income Release Scheme (SITIRS) represents<br />

a valid approach for many expatriates”.<br />

so far aware of investments being made in the<br />

Premier Balanced Fund and the International<br />

Capital Accumulation Fund, although there may<br />

be others. <strong>The</strong> aim of the investment is to provide<br />

sufficient growth to pay not only the quarterly<br />

interest due on the mortgage, but also to pay an<br />

annual cash release of 2% during the first five<br />

years of the mortgage.<br />

<strong>The</strong> scheme was promoted by Churchill as being<br />

of low risk. <strong>The</strong> Premier Balanced Fund brochure<br />

describes the fund’s investment objective as<br />

being “within a relatively low risk and secure<br />

environment”. In a separate brochure by the<br />

Premier <strong>Group</strong>, entitled “SITIRS – Spanish<br />

Investment Transfer and Income Release<br />

Scheme” (note the difference in the second and<br />

third words), Premier stated that “In conclusion,<br />

the SITIRS structure for residents does mitigate<br />

and reduce the Spanish ISD tax (inheritance tax)<br />

liability resulting from the decease of the Spanish<br />

resident property owner.<br />

In the opinion of the CDSAG’s solicitors, the<br />

scheme is illegal and should never have been<br />

promoted and sold in the first place. <strong>The</strong>ir main<br />

reasons are that the Spanish tax authorities<br />

do not accept this type of investment as a way<br />

of avoiding or reducing inheritance tax, the<br />

companies involved do not have the necessary<br />

registration and licences, and the investment<br />

funds are high risk, contrary to the promotional<br />

information provided at the time.<br />

This was the forerunner to Equity Release and<br />

has the same dire results. If you are a victim of<br />

<strong>The</strong> scheme involves a charge being registered this scheme, and would like further information<br />

against your property, in the form of a 10 year and assistance, please contact John Parsons, the<br />

interest-only mortgage from S L Mortgage Funding CDSAG Secretary, at JohnP@costa-action.co.uk<br />

No. 1 Limited, with the released funds being used or 952 884 261.<br />

to buy shares in an offshore investment. We are<br />

24 www.costa-action.co.uk


Fuengirola, 23.2.09<br />

DESPACHO JURÍDICO<br />

www.iura.es<br />

ABOGADOS-LAWYERS-RECHTSANWÄLTE-ADVOKATER<br />

Press release from IURA Despacho Jurídico regarding “Equity Release” frauds commited in<br />

Spain by NM Rothschild and Sons Limited (Rothschild), Aspecta Assurance International<br />

Luxembourg (Aspecta) and several unauthorised financial advisers, among them Henry Woods<br />

Investment Management and Hamiltons Financial Services.<br />

A criminal court in Alicante has initiated a criminal investigation against the directors of the<br />

British bank “NM Rothschild and Sons Limited”, as well as the responsible persons of the<br />

insurance company “Aspecta Assurance International Luxembourg” and the representatives of<br />

the company “Henry Woods Investment Management” in Marbella.<br />

<strong>The</strong> investigation has been started in consequence of a criminal action initiated by the law firm<br />

IURA Despacho Jurídico (Fuengirola) in this court.<br />

<strong>The</strong> object of the criminal investigation are Financial Investments offered to British, Dutch,<br />

Scandinavian and German residents on Spanish National territory called “Equity Release”. In<br />

these investments the victims, mostly retired house-owners in Spain, were convinced to sign<br />

mortgages against their Spanish properties in favour of the NM Rothschild and Sons Limited<br />

Bank in Guernsey.<br />

Once the victims signed the mortgages, the released capital was not paid out to them but<br />

transferred by the bank “NM Rothschild and Sons Limited” from the Isle of Guernsey to other<br />

tax havens, among them Luxembourg, the Isle of Man and the other Channel Islands. <strong>The</strong><br />

money of the house-owners living in Spain was then invested by the Luxembourg company<br />

“Aspecta Assurance International Luxembourg” in funds which were absolutely worthless,<br />

even before the financial crisis. In consequence, house-owners lost significant amounts of<br />

their invested capital in these funds. On the other hand, they were forced by the Bank NM<br />

Rothschild and Sons Limited to continue paying the interest rates on the mortgages on the<br />

properties in Spain. In several cases, the losses of the retired people are now up to 45% of the<br />

invested capital.<br />

<strong>The</strong> house-owners were promised by the bank and the financial advisers that the investment<br />

would generate an annual income, avoid the Spanish inheritance tax and above all, that the<br />

investment benefits would cover the interests of the mortgage the victims signed in favour of the<br />

bank. <strong>The</strong> existence of a capital guarantee regarding the invested amount was also promised.<br />

www.costa-action.co.uk<br />

25


DESPACHO JURÍDICO<br />

www.iura.es<br />

ABOGADOS-LAWYERS-RECHTSANWÄLTE-ADVOKATER<br />

<strong>The</strong> promotion, sale and administration of the “Equity Release” was carried out in Spain<br />

on behalf of Rothschild and Aspecta by companies who acted without any kind of licence,<br />

permission or authorisation from the Spanish financial authorities (e.g. they were not<br />

registered in the Comisión Nacional <strong>del</strong> Mercado de Valores or the Dirección Nacional de<br />

Seguros) and therefore acting illegally. In the Spanish financial world such companies are<br />

called “chiringuitos financieros”. Both the Bank NM Rothschild and Sons Limited and Aspecta<br />

Assurance International Luxembourg have been paying commissions to these unauthorised<br />

agents. One of these companies, Henry Woods Financial Services and their director Donald<br />

Nott, is yet involved for many years in other criminal accusations at the Audiencia Nacional<br />

in Madrid.<br />

<strong>The</strong> victims of the “Equity Release” suffered losses between 20 and 45 % of the capital<br />

that was invested by the bank. <strong>The</strong> clients have never received the information regarding the<br />

financial product which the Spanish consumers` protection legislation request. Furthermore,<br />

the information given about the development of the funds in which the capital was invested has<br />

not been reported to the victims, so they hadn´t a chance to step out at the right time.<br />

<strong>The</strong> funds itself are highly speculative financial products without any kind of capital guarantee.<br />

Some of the funds have even suspended the trading.<br />

<strong>The</strong> number of affected people which is run by IURA Despacho Jurídico is in total 34 families.<br />

<strong>The</strong> total amount of the mortgages and loans signed by house-owners in the cases that know<br />

until now is up to 20 Million Euros. <strong>The</strong> economic losses are estimated at the moment between<br />

8 and 10 Million Euros. In this context it is important to know that these detected losses<br />

have been generated in only 2 o 3 years of investment, whereas the total running time of the<br />

mortgages and loans is 10 years. It is for this reason that we are expecting further financial<br />

losses to be suffered by clients.<br />

A class action has been started in the courts in Alicante by our law firm IURA Despacho<br />

Jurídico (Fuengirola), in order to defend the affected people. Further criminal actions were<br />

started in the courts of Málaga.<br />

Furthermore, our law firm has initiated civil claims against the Rothschild Bank, Aspecta and<br />

the financial advisers.<br />

Avda. Jesús Santos Rein, 17. Urb. Puebla Lucía. Edf. Mirador, 1ª Plta, 29640 Fuengirola (Málaga).<br />

Telf.: 952.47.71.08/12 – Fax: 952.47.71.16. www.iura.es - despacho.juridico@iura.es<br />

26 www.costa-action.co.uk


Good <strong>New</strong>s for pensioners<br />

Bad <strong>New</strong>s for criminals<br />

<strong>The</strong> days of criminals being allowed/<br />

encouraged to rob pensioners from their dens<br />

on Jersey, Guernsey and the Isle of Man are<br />

finally coming to an end.<br />

Both the UK and the USA governments are<br />

becoming increasingly annoyed about these<br />

fraudsters.<br />

UK - Chancellor Alistair Darling recently<br />

said to the Treasury Select Committee<br />

investigating the banking crisis … “Having<br />

looked at what has happened over the last<br />

few months, we really do need to have a long<br />

hard look about the relationship between<br />

this country and the Isle of Man, a tax haven<br />

sitting in the Irish Sea.<br />

We’ve come to a situation where you have<br />

sitting there all sorts of tax advantages<br />

accruing to being in the Isle of Man and when<br />

things go wrong people then say what about<br />

the British compensation scheme.”<br />

USA - Following the election of Barak<br />

Obama … Geoff Cook, chief executive of<br />

Jersey Finance, said that he was becoming<br />

increasingly “apprehensive” because during<br />

his campaign Obama said: “As President, I<br />

shall shut down those offshore tax havens<br />

and corporate loopholes because you<br />

shouldn’t have to pay higher taxes because<br />

some big corporations cut corners to avoid<br />

paying theirs.”<br />

He was speaking in support of the Stop Tax<br />

Haven Abuse Act, a bill that names Jersey,<br />

Guernsey and the Isle of Man as “offshore<br />

www.costa-action.co.uk<br />

secrecy jurisdictions” which have helped<br />

American citizens and businesses evade<br />

US tax. It proposes to take very tough action<br />

against such jurisdictions and those who use<br />

them.”<br />

<strong>The</strong> <strong>Group</strong> should not relax just yet because<br />

once fraudsters are flushed out of one<br />

hideaway they may (temporarily) find another<br />

– but even so their days now appear to be<br />

numbered!<br />

Deposits within<br />

channel Islands<br />

Billions of pounds of British savers’ money<br />

in offshore accounts is potentially at risk if<br />

a bank goes under as no deposit protection<br />

schemes exist in Channel Islands, Jersey<br />

and Guernsey. Although Jersey’s<br />

government recently pledged to protect all<br />

savers’ money, this guarantee only applies<br />

to residents of the islands. Meanwhile,<br />

Guernsey has no such protection scheme<br />

in place, although it recently announced<br />

plans to establish one. In contrast, Isle of<br />

Man offers protection for both local and<br />

international deposits up to £50,000.<br />

This may be a serious concern at present<br />

if any members have deposits in Offshore<br />

Bonds -- within Jersey Banks<br />

27


Illegal Capital Gains Tax Payments<br />

In 2007, <strong>Costa</strong> l Álvarez l Manglano<br />

Lawyers and Tax Specialists initiated a legal<br />

action (without precedent) to reclaim from<br />

the Spanish Government part of the Capital<br />

Gains Tax paid by EU citizens on the sale of<br />

their property in Spain. Non residents were<br />

charged 35%; Spanish residents only 15% (It<br />

should be noted that Discrimination forbidden<br />

by EU Treaty).<br />

<strong>Costa</strong> l Álvarez l Manglano has recently<br />

obtained a final judgment from a Spanish<br />

High Court ordering Spanish Tax Authorities<br />

to refund overcharged Capital Gains Tax.<br />

<strong>The</strong> Court accepted all the legal arguments.<br />

By obtaining this judgment, <strong>Costa</strong> l Álvarez<br />

l Manglano sets a legal precedent for<br />

thousands of EU citizens to reclaim overpaid<br />

tax.<br />

If you sold a Spanish property between mid-<br />

2004 and 31st December 2006 and paid<br />

Capital Gains Tax (CGT) at 35 %, you can<br />

reclaim. Due to legal time limits, do not<br />

take the risk of your case expiring.<br />

It is crucial to be represented by an<br />

International Tax Expert Lawyer. In Spain,<br />

28 www.costa-action.co.uk<br />

only 1 out of 3 (approx.) tax advisors are<br />

lawyers who are allowed to legally represent<br />

clients in Courts. Very few lawyers are tax<br />

specialists.<br />

Not all tax specialist / lawyers are specialized<br />

in International and European Community<br />

laws, most are only aware of domestic<br />

laws. To reclaim your refund you must be<br />

represented to present in court international<br />

legal arguments.<br />

We now anticipate the Spanish Tax Authorities<br />

will employ legal tactics to make future claims<br />

difficult and to <strong>del</strong>ay payments. As we have<br />

built the case from scratch, <strong>Costa</strong>, Alvarez,<br />

Manglano are fully prepared to defend and<br />

overrule such tactics.<br />

As a result, it is crucial to employ the<br />

services of a lawyer suitably specialized and<br />

experienced. Wrong advice could ruin your<br />

chance of a successful reimbursement.<br />

If you wish, ask your lawyer/tax adviser to<br />

contact us we will work with them.<br />

Some of our clients expressed fears about<br />

possible consequences resulting from<br />

presenting this reclaim.<br />

YOUR INVESTMENT CONTRACTS<br />

Financial Advisors will ask you to read and sign English documentation.<br />

We recommend you insist all documents are in<br />

English and Spanish as required by law.<br />

In the event of any dispute<br />

Spanish documentation is the only accepted language in Spain.<br />

<strong>The</strong>se can be very costly to have translated.


Avoiding and/or Surviving<br />

the Con<br />

It is an old saying: “Don’t mix friends<br />

and money or you will lose both”.<br />

And it is one that is well applied to friendly<br />

advice here on the <strong>Costa</strong>s.<br />

Ask Violet. And yes, sorry, names have been<br />

changed.<br />

But do the professionals do any better?<br />

Violet had been taken by a good selection<br />

of the financial advisers here. In her bid to<br />

protect her capital and derive sufficient income<br />

she had thought she was being prudent when<br />

she sought out the best advice she could find.<br />

<strong>The</strong>y all cost her dearly and so she listened<br />

to the words of advice from an old friend,<br />

Edward, who invested in spread betting on<br />

stocks. He was certain he could provide an<br />

income for her and invited her to try a small<br />

investment of 2.500 euros with him. Well,<br />

when a good friend says he has a sure thing<br />

that he lives on and you really need a solution,<br />

what do you do? That was last summer and,<br />

yes, you guessed it, she has not yet seen<br />

a penny back nor her initial investment. But<br />

what about the professionals?<br />

From an investment of over 100,000 euros<br />

with Terry of a leading investment group she<br />

had lost most after he managed to sell shares<br />

in a falling market. Why did he do that ? It<br />

is still a mystery. Charles likewise lost her<br />

a small fortune under rather more dubious<br />

circumstances.<br />

Violet tried a different direction and from<br />

95.000 invested in traded endowment policies<br />

with an apparently reputable British company<br />

through a <strong>Costa</strong> financial adviser, and with a<br />

leveraging loan eagerly provided by a very<br />

www.costa-action.co.uk<br />

well known and respected high street UK<br />

Bank, she has been fortunate to recover<br />

just over 10.000 euros. <strong>The</strong>re was some<br />

income to start off with, but that soon dried<br />

up. Unfortunately the risky concept of traded<br />

endowment policies was not clearly presented<br />

at the time for Violet to fully understand. And<br />

she really needed a workable investment,<br />

and it seemed such a good and wise thing to<br />

do at the time.<br />

From yet another investment of 35.000<br />

through another local adviser into Afinsa she<br />

has yet to see anything recovered.<br />

And this was mostly all before the credit<br />

crunch!<br />

As for respectable professionals who are also<br />

friends of the family. Well, they can be the<br />

worst of all as became apparent with another<br />

gentle soul’s story of rapacious theft that was<br />

related to the <strong>Action</strong> <strong>Group</strong>.<br />

Alan had held her father’s hand as he lay<br />

dying and promised faithfully to look after<br />

his daughter’s well being. She is now almost<br />

completely destitute and Alan jets regularly to<br />

the Bahamas where it seems he keeps most<br />

of his stash.<br />

So what does one do to invest<br />

wisely?<br />

Simply put, there is no alternative to<br />

29


conducting your own intelligent and realistic<br />

appraisal of the investment within which you<br />

hope to entrust your life savings.<br />

Never hope against hope. Never indulge in<br />

hopeful, wishful thinking. Further - money<br />

is simply money. It is not rocket science.<br />

Mathematically it is no more complicated than<br />

adding, subtracting and a bit of multiplication.<br />

No algebra. No square roots. No quantum<br />

physics. No complex formulae. So don’t be<br />

impressed by magnificent sounding schemes<br />

or profound and professional sounding words.<br />

Keep it simple!<br />

And don’t get snagged by greed or something<br />

you can just feel is not quite right even though<br />

you can’t quite put your finger on it. Even if it<br />

really does seem like a winner - perhaps a bit<br />

tacky ‘round the edges’?<br />

Does it help to keep one’s cash under the<br />

mattress or on deposit in the local bank,<br />

30 www.costa-action.co.uk<br />

where you can at least admire the cash as it<br />

is demolished by inflation rather than watch<br />

it disappear into the pockets of extremely<br />

credible advisers?<br />

Of course, that is also a silly, losing option.<br />

Ultimately one has to trust somebody to a<br />

certain extent. But it is, indeed, all too easy<br />

to be tricked as Banco Santander can verify<br />

regarding Bernie Madoff’s scam. And if they<br />

can get it wrong what chance do we have?<br />

One rule I have is never to trust anyone to<br />

a greater extent than you are confident they<br />

have more to lose by betraying your trust than<br />

by remaining faithful to it.<br />

Seek advice from advisers who<br />

are regulated in the territory within<br />

which they operate. Regulation in<br />

the Channel Islands, Luxembourg, or<br />

even the UK is not easily enforceable<br />

in Spain!<br />

Tell us what you think.<br />

<strong>The</strong> FSA has issued a consumer warning about<br />

an IFA firm for expats which may have cashed<br />

in on clients’ investment products.<br />

Customers who have invested money through Middlesbrough and Wrexham-based<br />

UK Expatriates Independent Financial Advisory Services (UEIFAS) should check<br />

the status of their investment with their provider, according to the regulator.<br />

<strong>The</strong> FSA believes UEIFAS may have cashed in on investment products taken out<br />

on behalf of its clients without their knowledge or consent and failed to return the<br />

funds to them.<br />

It may also have failed to pass funds transferred to it by clients for investment<br />

purposes on to the relevant investment provider, it warns.<br />

Anyone who has made investments through the firm should contact Simon Stokes<br />

at the FSA on: 020 7066 3124 or simon.stokes@fsa.gov.uk.


WORRIES ABOUT UK HEALTH<br />

CARE RESTRICTIONS<br />

Concern about the availability of health care in<br />

the UK is giving British expats living in Spain<br />

a serious headache. But the Department of<br />

Health says there is not much to worry about<br />

for those who wish to return.<br />

<strong>The</strong> main criterion for free health care in<br />

Britain is residency, according to a Department<br />

spokesperson, and it doesn’t matter how long<br />

you have been away.<br />

“A UK state pensioner living overseas who<br />

then resumes their permanent residence in<br />

the UK is exempt from charges for all hospital<br />

treatment, including pre-planned treatment,<br />

from day one. <strong>The</strong>y should be prepared to<br />

show evidence to a hospital that they have<br />

returned permanently, “ she said.<br />

“Under the current Regulations, anyone who<br />

is taking up or resuming permanent residence<br />

in the UK is entitled to free National Health<br />

Service (NHS) hospital treatment in England.<br />

If your intention is to live permanently in the<br />

UK you will be exempt from hospital charges<br />

from the date of your arrival in the country<br />

but you will be asked to prove your intention<br />

and that you are legally entitled to live here.<br />

This exemption applies to your spouse, civil<br />

partner and children if they are living here<br />

with you on a permanent basis.<br />

“If you do not have an automatic right to take<br />

up permanent residence but have applied to<br />

the Home Office for leave to enter/remain on<br />

a settled basis, you will be chargeable for<br />

any hospital treatment up to the point your<br />

www.costa-action.co.uk<br />

application is granted. Once you are living in<br />

the UK permanently you will become ordinarily<br />

resident and the charges will cease to apply<br />

to you. Your spouse, civil partner and child will<br />

also be considered ordinarily resident if they<br />

are living permanently in the UK with you and<br />

have the right to do so. If they are not living<br />

permanently in the UK then the regulations<br />

regarding charges will apply and in order to<br />

be entitled to free hospital treatment they<br />

will have to meet one of the categories of<br />

exemption in their own right.<br />

“Regardless of residential status or nationality,<br />

emergency treatment given at a doctor’s<br />

surgery or in Accident and Emergency<br />

departments or a Walk-in Centre providing<br />

services similar to those of a hospital Accident<br />

and Emergency department is always free of<br />

charge,” said the spokesperson.<br />

Entitlement to free health care in the UK has<br />

nothing to do with the taxes you may or may<br />

not have paid in the past. Nationality or past<br />

or present payments of UK taxes and National<br />

Insurance contributions are not taken into<br />

consideration when establishing residence.<br />

<strong>The</strong> only criteria is whether you ordinarily live<br />

in the UK. Which, of course, by the time you<br />

have returned, you will be doing!<br />

If you have any concerns regarding your<br />

status regarding health care in the UK,<br />

contact the <strong>Action</strong> <strong>Group</strong> and we can give you<br />

more information, or direct you to the relevant<br />

Government department<br />

31


Dear CDSAG,<br />

I feel that I have to write to you to sincerely thank you for your<br />

help and advice.<br />

I was very heavily involved in an Equity Release scheme marketed<br />

by a well known Financial Adviser here on the coast. I was close to<br />

signing the contract when I plucked-up the courage to telephone<br />

your helpline. I was connected to a very sincere person who quickly<br />

put me at ease and promised to investigate the situation and call me<br />

back. I was advised not to sign anything until I heard back from this<br />

person.<br />

Gladly I obliged and was rewarded by being told sometime later not<br />

to take out this contract under any circumstances.<br />

This advice and action has saved me so much grief and hardship and<br />

I am so grateful to your action group for just being there to help<br />

and assist.<br />

Thank you very much once again.<br />

Joanne Wright<br />

Dear CDSAG,<br />

Having found myself a victim of the Hamiltons/Rothshchilds Credit<br />

Select Series 4 scam,<br />

I contacted and joined the CDSAG.<br />

This was in November 2007.<br />

Since that time the progress made towards resolving our particular<br />

difficulty has been monumental.<br />

<strong>The</strong>re is a way to go, but, I cannot thank David enough for his<br />

support and kindness, IURA the Spanish<br />

Lawyers involved in the case for their advice, and Suzy, for her<br />

drive, and for putting a foot firmly up my<br />

backside and making me fight for myself.<br />

<strong>The</strong>se good people work for us for nothing, not the lawyers, of<br />

course, but the CDSAG!<br />

Anyone reading this magazine who has been involved with Rothschilds<br />

and Hamiltons or any other Financial Advisor and has found the<br />

income promised has not materialised, should contact the CDSAG<br />

immediately.<br />

May the force continue to be with you at the CDSAG and anything I<br />

can do to help, I will do.<br />

Jean Leftwick Credit Select 4 victim Hamiltons/Rothschilds<br />

32 www.costa-action.co.uk


SALES ADVISORY PROCESS – a UK perspective<br />

When considering any financial advice from a<br />

reputable Firm there are several stages to the<br />

regulatory sales process, which depending on where<br />

the firm is regulated, have to be followed. <strong>The</strong>refore<br />

the first check that any person must consider is what<br />

regulatory jurisdiction is that firm/adviser controlled<br />

under?<br />

Any adviser who operates under the UK rules the<br />

sales and advisory procedure should follow more or<br />

less the same way by any good firm and will cover the<br />

following areas:<br />

1. <strong>The</strong> initial meeting and introduction<br />

2. Gathering information<br />

3. Client needs analysis<br />

4. Research tools<br />

5. Point of sale<br />

6. After sales conduct, complaints and service<br />

considerations<br />

<strong>The</strong> initial meeting<br />

Different categories of approved adviser ranging<br />

from a Company Representative, a Multi-tied<br />

Representative, a ‘Whole of Market’ adviser, and<br />

lastly an IFA exist. IFA Firms may also be either<br />

‘directly authorised under the FSA or an Appointed<br />

Representative of a directly authorised firm which<br />

means they operate under that lead firm<br />

At the initial meeting with a client, the adviser is<br />

obliged to issue a business card, which will identify<br />

his/her status and the firm’s regulator It should<br />

provide the address and contact details of the adviser<br />

and firm<br />

<strong>The</strong> adviser must provide a copy of, and explain the<br />

firm’s Client Agreement containing the ‘terms of<br />

business’.<br />

www.costa-action.co.uk<br />

Main areas within a Client Agreement<br />

normally include:<br />

Client classification – client protections<br />

Scope of Advice -- products or services offered --<br />

Compliance – compliant procedures and contacts --<br />

Professional indemnity cover<br />

Remuneration choices<br />

(commission / fees etc)<br />

Client money permissions<br />

Data protection and communication methods<br />

Possible risks<br />

Countries of work ie UK, Spain etc<br />

At this point it may be worth obtaining confirmation<br />

from the adviser as to his/her proficiency and<br />

experience and to re-affirm the scope of the firm’s<br />

permissions in respect of the business they are<br />

authorised to transact.<br />

With the client permission the adviser then complete<br />

a fact find document to ensure that they ‘know the<br />

client’ which encompasses personal details assets and<br />

liabilities, and identifies their objectives and priorities.<br />

An adviser will cover all financial areas including,<br />

investments, family protection, life cover and critical<br />

illness, inheritance tax mitigation, permanent health<br />

and private medical insurance, pension arrangements.<br />

Clients may have a full review or should any client<br />

require advice in only one area, then the fact find may<br />

be restricted to questions appertaining to that area<br />

alone.<br />

Normally the adviser will ask other questions<br />

before they can make the most favourable product<br />

recommendation, such as any future known financial<br />

or personal changes in the client’s circumstances that<br />

will make a difference to the recommendation. <strong>The</strong>se<br />

33


changes or client attitudes and feelings are<br />

most important along with the age or health of<br />

the client(s). Affordability is equally important<br />

along with the client’s attitude to investment<br />

risk, investment timeframe, volatility of the<br />

investments, initial and ongoing taxation of the<br />

client or investment, and whether income or<br />

access is required. Clients should invest only in<br />

the areas where they can accept the risk or returns<br />

involved and they should accordingly lower any<br />

risk the shorter the timeframe for investment.<br />

Much will depend upon all the circumstances at<br />

the time and the client attitude e.g. economic<br />

and stock-market conditions combined with the<br />

amount of capital invested to invest. It is at this<br />

point the client agrees the terms of payment for<br />

the services offered.<br />

Client needs analysis and Research<br />

tools<br />

<strong>The</strong> adviser then analyses all the information and the<br />

product and investment funds are then selected all in<br />

accordance with the clients circumstances and needs.<br />

Some IFA firms have investment risk fund software<br />

tools, to assist this process which helps considerably<br />

for the product suitability.<br />

Point of sale<br />

<strong>The</strong> adviser provides and discusses a copy of all<br />

personal illustrations and key features documents<br />

obtained from the approved product provider(s).<br />

<strong>The</strong>se provider documents must include Regulation<br />

information for that authorised distribution for the<br />

Clients Country of residence, along with information<br />

from the designated Country where they originate.<br />

Assumed rates of returns are shown which are based<br />

on the taxation status of the product. Care must be<br />

taken as some Countries such as Spain may not have<br />

34 www.costa-action.co.uk<br />

many tax concessions and some products may have<br />

high charges.<br />

Products should not be recommended based on past<br />

fund performance only, as future returns may be<br />

entirely different. Most illustrations show the amount<br />

of commission payable to the adviser whilst some do<br />

not show the effect of charges or total expense ratios.<br />

If investment amount or funds are changed as agreed<br />

with the client the adviser must obtain a further<br />

illustration and send it to the client. Clients should be<br />

informed of cancelation rights under the product and<br />

within the terms of the provider Company<br />

Provider money laundering ID requirements require<br />

copies of passports, driving licences, bank statements<br />

and utility bills showing the client’s address to<br />

establish the client’s identity and proof of address.<br />

<strong>The</strong> source of investment monies is also required.<br />

A ‘Suitability Letter’ is normally sent by the adviser to<br />

the client to justify the ‘reasons why’ for sale of the<br />

product This includes, client’s circumstances, product<br />

suitability, provider and product details, affordability,


investment and risk attitude, funds chosen, and<br />

taxation of the product and residency issues.<br />

After sales conduct<br />

Policy information documents, and cancellation<br />

documentation should be sent directly to clients<br />

and not to the adviser unless agreed (this may be<br />

unavoidable because of the postal services). <strong>The</strong><br />

adviser may receive copies for their files. Review<br />

meetings agreed with the client, can be completed<br />

via e mail if distance is a problem. If there are any<br />

important changes to product Terms and Conditions,<br />

then the provider or adviser should inform the client<br />

accordingly.<br />

Complaints procedure<br />

For advice issues<br />

Complaints should be made to the Firm’s Complaints<br />

Officer detailed on the Client Agreement unless the<br />

adviser is a self employed adviser. An independent<br />

qualified person usually carries out complaints<br />

investigations and these will be completed within a<br />

reasonable timescale. Failure to agree with the firm’s<br />

findings on behalf of the adviser will mean that the<br />

Financial Ombudsman Service (if UK Regulated) can<br />

be approached for further investigation. resulting in<br />

www.costa-action.co.uk<br />

possible compensation for any financial loss. In Spain<br />

some rules depend on where the advice was initially<br />

provided and the client’s residency status at the time<br />

and appeals through another regulatory body is<br />

required.<br />

For provider issues<br />

Complaints procedures are exactly the same process, if<br />

the complaint is about a product provider<br />

Products should be licensed in the Country they<br />

are distributed and providers may have a separate<br />

regulatory obligations but all Clients may wish to<br />

avoid products where there is no bankruptcy or other<br />

compensation schemes available.<br />

Disclaimer<br />

<strong>The</strong> above is our view of an approved sales process<br />

within the UK and Spain by a regulated FSA approved<br />

firm only. <strong>The</strong>re may be certain variations of this sales<br />

process in line with different firms T & C Compliance<br />

procedures<br />

Trevor Seery<br />

Compliance Director<br />

RTP Independent Financial Services Ltd<br />

FSA Number 225374<br />

CRIMINAL ACTION HAS BEEN TAKEN AGAINST THE FOLLOWING:<br />

GWILYM RHYS JONES<br />

FOR THE RETURN OF THE CDSAG BANK FUNDS AND ACCOUNTS<br />

We have Class <strong>Action</strong>s in the Criminal Courts in connection with<br />

EQUITY RELEASE<br />

Our cases involve dreadful firms of UNLICENCED financial advisers such as<br />

Hamilton’s Financial Services, Henry Woods, Offshore Money Managers,<br />

Graydon & Associates with banks such as<br />

Rothschild Bank International, Danske Bank & Landesbanki<br />

LANGTONS / SPEARMINT BLUE<br />

We have members that are taking Criminal action against Langton’s regarding<br />

Spearment Blue<br />

35

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