Royal Skandia bonds _Isle of Man

  • rousey
  • 21/10/08 31/05/09
  • unspecified
  • Offline
Posted: Tue, 21/10/2008 - 08:30

I and many others have an offshore bond with Royal Skandia on the isle of man. I put some money into a fixed rate deposit with Kaupthing and now find out that because it is done through Skandia, the compenastion is limited to a total of £15000 per company.
It basically means that the 600 fellow holders of funds through Skandia can share the £15000 between them.
It means that there has been no security for my funds whatsoever!! When i started this bond 7 years ago , i was never told about this. It was not in the blurb.
I have less security at the moment than individual investors because i was told that Skandia was a world class insurance co.
In the sunday times this weekend , Aegon, a similar insurance co. are looking at lageal advice to see if they should repay savers. This is the way forward for any of us in the above situation. We must be prepared to sue Skandia and the other insurance co . Also we must look at the prospect of taking all monies out of these companies and letting them watch their funds under management disappear to nothing. If they want to claim how well they look after us , then they had better start doung it right now or their cosy management charged, etc will dry up forever and Skandia and Isle of Man will no longer be relevant.
Skandia also happily informed of an 11% increase in year to date profits.!! They better look after us now

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Royal Skandia

  • Tugfiend
  • 27/10/08 31/05/09
  • not prepared to answer
  • Offline
  • Tue, 28/10/2008 - 00:03

Who suggested the KSF investment though? The IFA or Skandia?


Royal Skandia

  • barnie
  • 19/10/08 31/03/10
  • a depositor
  • Offline
  • Tue, 28/10/2008 - 00:25

IFA suggested I moved funds to KSF from B&B Prestige.
But the move was within the RSk 'wrapper' that offered "unrivalled protection and security"!!


Royal Skandia IOM - Q&A

  • barnie
  • 19/10/08 31/03/10
  • a depositor
  • Offline
  • Mon, 27/10/2008 - 23:46

I put a few simple questions to Royal Skandia last week and finally got an answer today:

From: xxxxxxxx
Sent: 22 October 2008 22:49
To: RSK FM Customer Helpdesk
Subject: Singer & Friedlander holdings
Importance: High

Dear RSK FM Customer Helpdesk,

Re: Collective Redemption Bond No: xxxxx-x

Please can you help us by answering a few questions:

  1. Is our money safe? If not .....
  2. What actions are the executives of Royal Skandia taking to protect our deposits that are held within the CRB in Kaupthing Singer & Friedlander (IoM)?
  3. Are the executives of Royal Skandia aware that 60% of the assets of Kaupthing Singer & Friedlander (IoM) were transferred to Kaupthing Singer & Friedlander (UK) prior to the UK Governments action to freeze the assets of branches of Icelandic banks in the UK? A situation that has left KS&F (IoM) depositors money at the mercy of the Administrators of KS&F (UK), money that could well end up being wrongly used to compensate UK account depositors and not IoM depositors (the rightful owners!).
  4. If the executives of Royal Skandia are aware of the above are they lobbying the UK Government with the same vigour as the KS&F IoM Depositors Action Group?
  5. Are the executives of Royal Skandia lobbying both the UK Government and the Icelandic Government to resurrect the 'Parental Guarantee' that was in place before this crisis?

  6. In a nutshell, are Royal Skandia doing everything in their power to protect our hard earned lifetime savings - or just sitting back waiting to see what happens because it is not actually their money?

I apologise if the tone of this mail appears somewhat terse, but we are desperately worried about our futures.

We look forward to your reply,

Mr xx and Mrs xx xxxxxx,
Xxx xxxxxxx xxxxx,
xxxxxxxxr,
Hampshire. Xxxx xxx.

Dear Mr xxxxxx

Thank you for your e-mail I have answered your queries in the same order as your e-mail below.

1/ Royal Skandia is a reputable company regulated and licensed by the Isle of Man Insurance and Pensions Authority. The Isle of Man regulations which are most relevant to your question are the Isle of Man Insurance Act 1986 and Financial Supervision Act 1988, Life Assurance (compensation of policyholders) Regulations 1991.
Contained within the Isle of Man Insurance Act 1986 is a section which specifies all licensed insurance companies must maintain a long term business fund in which assets are held to meet liabilities arising under insurance policies issued by the life company. Put in its simplest terms liabilities means monies due to policyholders at the maturity of their bonds or if they wish to surrender or take withdrawals from the bonds. The Act requires that Royal Skandia at all times keeps its policyholder accounts segregated from its general accounts. The assets held in this fund can only be applied for the purposes of meeting liabilities of the policies issued by Royal Skandia. It cannot be used for any other purpose. What this does is to ensure that in the unlikely event Royal Skandia became insolvent there would be sufficient funds available to pay our bondholders.
As an additional safeguard there is also the Financial Supervision Act 1988, Life Assurance (compensation of policyholders) regulation 1991. This act ensures that should an Isle of Man licensed life company become insolvent, and unable to meet its policyholders liabilities, a levy is raised from the remaining life companies and the proceeds of the levy are used to pay up to 90% of the value, less existing contractual charges, of the policyholder’s bond.
Copies of the full act and regulations plus an extensive question and answer section can be found on the Isle of Man Insurance and Pensions Authority website http://www.gov.im/ipa/
Neither of the above cover the value of investments held within the bond. The risk of investments falling in value or of a fund failing is borne by the bond holder.
As you may be aware the Isle of Man has a bank deposit compensation scheme which is triggered if a bank becomes insolvent and is unable to honour its liabilities to deposit holders. Assets held in bank deposit accounts are held in the name of Royal Skandia and not in the name of the individual this means that the Isle of Man bank deposit compensation scheme pays a maximum total amount of £20,000.00 to Royal Skandia. This would be divided between affected bond or plan holders.

2/ Senior managers within Royal Skandia have met with representatives’ of Isle of Man Government and the liquidator. In addition Royal Skandia has joined with its trade body the Manx Insurance Association to press for fair and equitable treatment of everyone affected by the liquidation of Kaupthing Singer and Friedlander.

3/ Royal Skandia are aware of this. It was widely reported in the press.

4/ The liquidator is pursuing these funds and has appointed lawyers to advise him on this matter. In addition the Isle of Man Government is also pressing the UK Government for the return of these funds.

5/ The UK Government has agreed to represent Isle of Man Government is discussions with the Icelandic Government with the aim of restoring the guarantee.

6/Royal Skandia is doing everything in its power to protect your interests. With this in mind a representative of Royal Skandia attended this morning’s scheduled court hearing and was willing, if necessary, to argue that it would be in the best interests of all depositors to delay winding up the company. This was a view also held by a large number of depositors and the Financial Services Commission who had brought the hearing agreed to adjourn the hearing for a month. I have attached the liquidator’s press release on the adjournment. If you do not have the facilty to open word please let me know and I will forward the text on an e-mail.

I hope the above is satisfactory and if I can be of any further assistance please let me know.

Yours sincerly
Miss Cxxxxxxxx Exxx

Customer Helpdesk
Royal Skandia Life Assurance Limited

Hmmmmmmmm.


Royal Skandia Q&A

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
  • Offline
  • Tue, 28/10/2008 - 00:14

This is not very good.
1. As a creditor Royal Skandia would need the leave of the court to make represnetations if they hadn't sent in the notice that they were going to appear, which according to the deemster they did not; there was a risk that the deemster may have not heard their arguments
2. Royal Skandia said nothing at the meeing.
3. The FSC said they would neither support nor oppose an adjournment, as did the liquidator.
4. It was the treasury as a £10M plus creditor who were the 'heaviest' at pressing for an adjournment.
Its quite an incomplete and inaccurate statement.


Royal Skandia Group

  • barnie
  • 19/10/08 31/03/10
  • a depositor
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  • Thu, 23/10/2008 - 16:42

Anyone who has invested into this debacle through Royal Skandia may like to join the new group that the site editors have kindly opened for us.
Not only will it help us find out how many we number but it will help if we need to communicate with each other as things progress.

We WILL get our money back one way or another!


Rotal Skandia Bonds (IOM)

  • Wealth Manager ...
  • 22/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 10:51

Dear all. We are a wealth management (IFA) firm with clients with around £3.5m of exposure to this problem.

We advised our clients to take out these bonds and to invest in KSF IOM for all the right reasons, the same as you will have been told and with the same attitude as you yourselves have taken to investing.

We TOO, from a professional stand point feel that, should the deposits be lost Royal Skandia WILL be absolutely liable under a) the 90% guarantee bond default rules and b) under UK and IOM financial regulation over disclosure and the way in which they held money on behalf of bond clients.

If anyone out there feels that their existing adviser is not backing them sufficiently or is not equipped to take the fight to Royal Skandia should the need arise, we will be very happy to talk to anyone that wishes our assistance. This is FAR from a call for potential new clients, we are not interested in profiteering on the back of client misery, but we do believe that we have a strong understanding of the issues regarding Royal Skandia's tenuous legal position and we will be pursuing this should deposits be lost.


WEALTH MANAGER: Royal Skandia - Not Our Problem

  • barnie
  • 19/10/08 31/03/10
  • a depositor
  • Offline
  • Fri, 14/11/2008 - 11:32

Wealth Manager,

Are you still there?? Do you still log in to the site? You only seem to have posted once, telling us how you 'feel that RSk WILL be absolutely liable'.

If you are there, maybe you would like to comment on a recent posting by gazfuk under the forum heading
'Funds held via Toyal Skandia'.

http://www.ksfiomdepositors.org/node/1027

I would be interested to hear comments from any other IFAs as well.


Scandia Heavy Weight Legal Action?

  • klauseriksen
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Thu, 23/10/2008 - 16:49

Many People have done a lot of footwork that may be of use to Scandia if it decides to proceed with some sort of legal action.
This is just a short summary with sources:
Between £540-600 Million pounds were transferred by IOM in a JOINT ACTION between the IOM and the UK regulatory body to safe guard these funds from ending up in Iceland:
Source: http://www.isleofman.com/News/article.asp?NewsSection=1&StoryID=20464&Re...
Subsequently the UK regulatory body froze those funds and these are probably used to make up the shortfall in the deal the government made with ING.
The IOM liquidator clearly stated that the ONLY priority of the UK liquidator is to transfer funds to ING to complete the deal.
Source: http://www.kaupthingsingers.co.uk/Pages/3989
The question is, if those funds were transferred for safekeeping then the government of IOM looks to have been mislead as the UK government subsequently ceased those funds and caused the collapse of KSF IOM.
I am sure the IOM depositors intend to pursue this legally if those funds are not returned as there at least morally appear to be a strong case against the UK government and I guess Scandia may be inclined to do the same?


BONDS

  • dave
  • 14/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 19:31

I cannot understand why these high profile bond companies are not making a big noise to their friends in high places. Surely the chairman of these companies owed @£350million are doing something at a high level on their depositors behalf which assists our position. I hope and pray that their lack of noise on the matter is not because the bonds are a "strange tax haven investment".


I've just read some of the

  • mrp
  • 20/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 17:31

I've just read some of the old skandia literature and it does actually pretty much state explicitly that the 90% is for if skandia go tits up. I'll be the first to admit i didn't read that properly initially and i had assumed its 90% full stop up until 2 weeks ago. But surely if skandia refuse to (or are unable to) speak to me when i buy one of their policies, then does part of the responsibility to read up and advise me and give me the right information not lay with the person that i pay £x,xxx's to upfront (ie. my adviser) and more on top every year (can i stop those payments???) ?
Is that not what my adviser there to do? Surely if skandia are responsible then should my adviser not also be responsible 50:50? I'm almost insulted that i'm expected to lay none of the blame with my adviser who i pay quite hansomely. He was the one that told me where to invest. Should we all stake a claim against both skandia and our FA's??? If skandia state in their literature that the 90% applies solely to them going under, and both myself and my FA have assumed otherwise, do we have a leg to stand on?! Am i not foolish for not reading a two sided piece of paper that i was given by skandia via my adviser - it wasn't even in smallprint but quite clear (hindsights a wonderful thing)? Surely its not a black and white "insurance company bad, adviser good", or is it?
So should we spend energy on governments/ksf or on my adviser / Skandia?? Surely neither my adviser nor skandia have enough money to pay out every time a bank or fund manager screws up?!?!


Skandia info

  • chb
  • 10/10/08 15/10/09
  • a depositor
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  • Wed, 22/10/2008 - 19:47

mrp - We also invested in KSF IoM via RS on the basis of an IFA's advice. Nothing we received from Skandia explained that the 90 per cent related only to Skandia's own liquidity. Can you tell us what you have, what it says and when you got it please?

Our IFA, like yours, did not point out that the 90 per cent was conditional. Until, that is, we entered the problems last week and then they quickly 'clarified' the situation (absolving themselves of any guilt pretty quickly). In fact, we have received only two written communications - one from each of the IFA and Skandia - saying they have no liability for our losses.


Hi, yes its in a document i

  • mrp
  • 20/10/08 31/05/09
  • unspecified
  • Offline
  • Thu, 23/10/2008 - 17:08

Hi, yes its in a document i was given called Why Choose Skandia on the Isle of Man. If you speak to the skandia number they gave us they tell you no more really either. I think they will write again once they know exactly what will happen. I imagine both are dreading telling us any bad news - i don;t suppose theres much the advisers can tell us, they're probably waiting on skandia and the government as well.


MORE WELDON- FSC

  • user1123
  • 14/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 15:11

PLEASE EMAIL MICHAEL WELDON, THE PETITIONER, IF YOU HAVENT ALREADY TO REQUEST AN ADJOURNMENT ON FRIDAY. HE NEEDS MORE AMMUNITION, JUST SPOKEN, requires ac number AS ID.
michael [dot] weldon(?)fsc [dot] gov [dot] im


Weldon

  • expat3
  • 12/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 15:30

One of our members (think it was Icecrusher or Vikingraider) spoke to Weldon earlier who stated an account number was not required. An address would be sufficient. I emailed him earlier but did not receive (or expect) a response.

Edit- Apologies to Mr. Weldon, I have just received the following email response. Please note his words 'to the extent that they have been expressed to it' ALL of you who have not emailed him should do so NOW!

Dear Mr. ******

Thank you for your email.

The Commission will ensure that depositors’ collective views, to the extent that they have been expressed to it, are brought to the attention of the Court when it meets on 24 October 2008.

However, if you wish to make a formal representation to the Court you must follow the correct procedure which is set out on our website:

www.fsc.gov.im and listed under “Latest News”, “Kaupthing Singer & Friedlander (Isle of Man) Limited - 20 October 2008” “Advertised Notice”.

Regards

Michael Weldon

Head of Supervision

Financial Supervision Commission


reply from my iFA re wealth manager... Comments ?

  • madmax836
  • 10/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 12:19

Dear xxxxx

I am delighted that these guys feel like this, however I fear that they are fundamentally wrong. Because the bank account with KSF is not what is referred to as an “insured fund” with Royal Skandia, then it transpires that the cash held there does NOT fall within the compensation rules. In fact, RS hold the deposit on behalf of ALL their investors and in the event of KSF not paying their dues, the compensation scheme will only pay out up to £50k to the holder, which in this case is RS.

Remember that there are 2 compensation schemes, one for the offshore bond itself, which is 90% covered if RS go bust, and the other is the banking scheme which covers up to 50K of the deposit holders cash – ie RS.

Their second point is more interesting, and it would appear to be a legal point rather than financial.

Whilst they also make reference to not wanting to attract new clients, why else would a business be doing this?


MadMax

  • Wealth Manager ...
  • 22/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 13:24

Thanks for your response. Your grasp of the situation is not entirely wrong, but can stand some significant clarification in some important areas and is exactly the reason for our posting as there are levels of detail that the wider market is clearly missing and that does require professional resources.

Our desire is to assist those that feel that their existing adviser is unwilling or unable to deal properly with the intricacies of this mater. That is what a decent IFA business is in the business of doing. If by the demonstration of our knowledge and ability clients wish to work with us again, that surely beneficial to them and us. If they do not, then simply they will at least have had the benefit of the research and work we have done so far to recover our client’s wealth from this terrible situation.

There is nothing more or less to our posting than this.


Hi there Do you have details

  • Hong Kong
  • 12/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 14:32

Hi there
Do you have details or knowledge of the Friends Provident Bonds as well? The one where you can choose your investment? I was told there was back up from Isle of Man but was never informed that because money was held in accounts under FP name I would not then receive benefit of any protections for depositors by IOM. Understandably I am very unhappy and keen to pool with others on this if it will help. My adviser is in Hong Kong and am not sure is across the detail.


Hi there Do you have details

  • hkbased
  • 26/10/08 31/05/09
  • a depositor
  • Offline
  • Tue, 28/10/2008 - 08:07

i'm based in HK with, it sounds like, the same investments - skandia EIB and FP monthly plan, i haven't checked but i imagine FP pool funds to make investments in their name to get better rates for size


legal action

  • humphrey
  • 10/10/08 01/03/11
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 09:44

Hi,

I am working on this one right now, if anyone wants any info please contact me.


Skandia

  • chb
  • 10/10/08 15/10/09
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 05:55

If our savings via RS in KSF IoM are lost, and we agree that there are plenty of goods reasons to believe they're not, we will be asking for the 90 per cent and taking legal action if it's not returned.


Also in Royal Skandia and interested in legal advice

  • isabel mccrea
  • 13/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 06:46

We have a couple of names of Manx law firms who could give us some initial advice. contact me if you are interested.

Might be a good idea to do this now, rather than wait.
Isabel


Class action or shall we all camp outside SKANDIA's OFFICE

  • calpespain
  • 12/10/08 n/a (free)
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 05:39

Everyone with a RS bond has in all probability been miss-sold, it was sold to me as being 90% protected, but hey what's new we are all going to get NOTHING back here. We need to bring RS to their knees to be able to claim from their insurance guarantee of 90%. Anybody know how we can do that. I'm also tied up with Skandia and the GLANMORE PROPERTY debacle, which has frozen their funds since January, and have dropped some below my cost price of 5 years ago. I've been done like a kipper with these urchins,that call themselves financial advisors and investment and portfolio managers.

I for one had in total a seven figure sum with RS at the start of all this and, if I get 300k out of this I'll consider myself lucky. I personally feel that this is the end of the offshore financial industry as a whole. I for one, will never invest money with anyone of these small Islands that portrayed themselves as financially secure and rock solid ever again. Not only that as soon as I possibly can I will be getting my money out of Skandia and burying it in the garden, its certainly safer.

WE have no hope of getting what we are owed here ! We need to find a good firm of lawyers to fight our class action case against Skandia for miss- selling or misrepresentation and take them to the wire. Any suggestions of a good firm would be welcomed.


PRUDENTIAL BOND

  • walker
  • 15/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 10:55

I too am unfortunately a victim in this outrageous situation, but my bond is with the Prudential or 2even" the pru as Elizabeth Coleman referred to them in the Sunday Times. , I have bombarded them with questions and they have simply taken no proactive action other than standard letters telling me things i already know( except one thing that they did check that scottish aegon is NOT seeking legal advice whehter to pay back customers) . I cant even embarrass them into taking me seriously, I believe there are 70 of us in the same boat. If you want to get together please let me know.

I have begged them to lobby HMG, IMF, Iceland, the Treasury, Jack Straw, Manx, PWC . I have sent them letters from my MP but my worst fear is(we) are going to be a victim and then a statistic; HMG has abandonned us.

I want to go to the IoM on Friday.


Skandia

  • snidge
  • 16/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 04:04

I am on the Skandia raft too.
Whilst I am with rousey emotionally I am cautious about talking about sueing them.
Litigation is a mug's game!
Has anyone had the contracts and terms and conditions looked at by a lawyer?
Is there any basis for thinking a law suit might succeed?
On what grounds?
We can't have our cake and eat it (an unfortunate analogy I know),i.e the Government acted illegally-and it was Skandias fault we lost our money.
Of course the unrivaled protection isn't there! Like all such claims they work fine until they are tested.
I am however all for fighting on all fronts!
When the smoke has cleared ( and I am not as pessimistic as others about the scenario)
I would support any group with sound advice that an action might succeed.


Royal Skandia

  • chb
  • 10/10/08 15/10/09
  • a depositor
  • Offline
  • Tue, 21/10/2008 - 09:34

We are in the same position with substantial savings invested via Skandia. Have just read page 13 of information brochure given to us by our IFA -
'Unique Policyholder Protection
Of all the major offshore centres, including Jersey, Guernsey, Dublin and Luxembourg, only the isle of Man has a statutuory compensation scheme for offshore life assurance companies. The scheme operates globally, covering you no matter where you reside. This means that you will benefit from unrivalled protection.'

What does this mean? Surely not 15,000 divided by 600 individual investors?


Policyholder Protection

  • barnie
  • 19/10/08 31/03/10
  • a depositor
  • Offline
  • Tue, 21/10/2008 - 09:51

Have not yet found my Royal Skandia info brochure but have got my recommendations blurb from my IFA which says pretty much what you have quoted chb - 'unrivalled protection' etc.
It then goes on:
'Investors in policies issued by Isle of Man authorised life assurance companies are protected worldwide. In the unlikely event that the Company is unable to meet its liabilities, this compensation scheme will protect you. The scheme offers compensation of up to 90% of the value of your policies and there is no upper monetary limit.'

This probably means that Royal Skandia need to go 'tits-up' for us to get 'up to 90% of the value'.

This is a nightmare!!


Life Assurance Compensation

  • cold-dose
  • 11/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 02:13

Yes, the 90% compensation is in case Royal Skandia collapse - it unfortunately doesn't apply in this situation.


How can Royal Skandia collapse

  • skint
  • 20/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 11:49

unless they are liable to their customers for losses in situations such as this?


Equitable Life

  • cold-dose
  • 11/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 15:08

I refer you to the sorry case of Equitable Life.

The way the compensation scheme is structured it avoids taking liability for 'investment risk' - this was really intended for situations where the money is invested in shares or the like, but it unfortunately excludes situations where the value of the investment itself is lost.


Royal Skandia

  • jonathansmalley
  • 18/10/08 31/05/09
  • unspecified
  • Offline
  • Tue, 21/10/2008 - 09:14

I have not looked at the position of life offshore bonds and my comments need to be read in that context.

The usual position is that Life Insurers are the owners of the assets in their life funds, not the assured. This means that the credit risk of a bank failure is that of the Life Insurer not the individual insured.

You need to get all the documents together that set out the terms of your ofshore bond (and the documents used to sell you the bond). These documents need to be examined to see the precise relationship you had with Royal Skandia.

There is a chance that the risk of loss is Royal Skandia's not yours. Unfortunately, the devil is in the detail.


Same as .........

  • barnie
  • 19/10/08 31/03/10
  • a depositor
  • Offline
  • Tue, 21/10/2008 - 09:12

Hi Rousey
I'm in the same position as you and have been thinking exactly the same thing.
It would be interesting to find out how many others are in the same boat - maybe we could club together, take legal advice and share the expense.

One other area I am currently looking into is the quality of advice received from my IFA prior to depositing with Royal Skandia. Somewhere along the line I recall mention of 'compensation of 90% of the value of your policies'. Am hunting through my paperwork now. Will post again later.


Royal Skandia Bonds

  • david buglass
  • 16/10/08 n/a (free)
  • unspecified
  • Offline
  • Tue, 21/10/2008 - 09:22

Likewise,
I put the proceeds of my UK house sale into a Royal Skandia bond on the advice of a supposedly first class IFA group.I asked for a as low as risk/low return policy as I simply wanted the cash to be safe and grow a little as I am working/living overseas.What I appear to have got is a low return maximum risk ie zero protection policy.This is not right and there appears little that can be done.My IFA has empathy for my situation!!!I have one remaining intact Skandia investment with a German bank that I am pulling out back to the UK.
This is a life times savings I have lost and I cannot get rid of the nausea and lack of sleep over this.
The misrepresentation is jail sentence stuff in my mind.
Apologies if this seems a little OTT but the quality of hard working peop;les lives are at stake here.
I'm up for doing something over this but am based in the Far East.


david buglass

  • hkbased
  • 26/10/08 31/05/09
  • a depositor
  • Offline
  • Tue, 28/10/2008 - 08:15

are you in hong kong per chance? i'm in the same boat with a scandia bond after taking advice from a firm of IFAs/Insurance brokers in HK


AXA Bond

  • vikkinkit
  • 15/10/08 30/11/09
  • a depositor
  • Offline
  • Tue, 21/10/2008 - 10:05

We have funds in what I assume to be a similar bond with AXA in IoM, of which some was with KSM IoM. So far our IFA hasnt been able to provide answers to my questions, but as far as I can find out from other sources we will not be covered. I havent been able to speak to anyone at AXA yet, will update if I can get any info.


Another AXA bond

  • chillihaha
  • 14/10/08 n/a (free)
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 11:11

Like vikkinit, my family had money (£35K) invested in an AXA bond with KSF IoM. We only invested it in August and at the time it didn't seem an unreasonable thing to do. Likewise, the IFA seems completely in the dark and just keeps saying how they acted properly etc, presumably to make sure we don't think they are to blame which, to be fair, we don't even though it would be nice to blame someone.

It would be good to hear from any other AXA bond investors. I rang AXA IoM last week but they weren't able to tell me anything I didn't already know and were reluctant to make any comments in advance of the bank being completely wound up.

My personal understanding is that the corporate investors such as my family and vikkinit will simply get a share of the revised figure of £20K that AXA should receive under the compensation scheme. I've no idea how many investors AXA have in FSF IoM (any one else know?) so it's hard to assess how much that could relate to...but clearly a pittance. Have I really understood that correctly £20K to divide between ALL AXA's KSF IoM investors ?


Another AXA Bond

  • Mrs Not Too Happy
  • 12/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 11:30

Glad to hear that I'm not the only person stupid enough to have such a bond (I'm not glad really - the whole mess is just so sad).

The first thing to say is that IFA is useless - he knows much less than I do and all I know has come from this site. In fact he just ignores me now - waste of time.

My bond was £300k and I was told that the bond gave much more security than a standard deposit because of this 90% bit. RUBBISH MY IFA HAS JUST NOT READ THE SMALL PRINT PROPERLY. There is no security whatsoever.

Someone posted a comment a number of days ago staating that he had a sipp based deposit. He took legal advice from a firm in Manchester who were of the belief that the IFA should have spread the risk therefore may have been negligent.

I have made contact with the solicitors and are in the process of obtaining an opinion from them. I feel that I have to explore this path.


AXA Bonds

  • vikkinkit
  • 15/10/08 30/11/09
  • a depositor
  • Offline
  • Thu, 23/10/2008 - 14:01

Hello Mrs Not Too Happy, I am thinking of pursuing action against our IFA. I have just read what paperwork I have regarding the AXA Bond and nowhere is there anything about compensation for the funds deposited with banks via the bond. He also seems to be evading any mention of this when mentioned!
We only took ours out in September this year, so I do feel we should have been warned........hey ho, too late now!


AXA Bond

  • vikkinkit
  • 15/10/08 30/11/09
  • a depositor
  • Offline
  • Wed, 22/10/2008 - 11:39

Oh, am glad to hear we are not alone in AXA (well, as you say, not glad really). We also put our funds there very recently and had spread the funds across two Irish Banks and FSK, all IoM. When I started to raise my concern, our IFA said 'you are covered for 90% in the IoM' - ha! I subsequently found out that this only relates to a failure of AXA itself, and we are not covered at all for funds with banks via the bond - not even the Irish banks (which he also assured us were covered 100%).
My knee-jerk reaction was to withdraw funds from the banks and place them in the AXA Sterling Money Fund (I think that is the name). Sadly of course, the stuff in KSF IoM are stuck, and probably lost!
I seem to be able to find out more than the IFA, which is not at all reassuring.


AXA

  • JDEBS
  • 11/10/08 31/05/09
  • unspecified
  • Offline
  • Mon, 27/10/2008 - 18:47

Also an AXA bondholder and have kept pressure on them as far as I can. Let me know if you plan any concerted action. Thanks


Also AXA !!!

  • raffles
  • 18/10/08 31/10/09
  • a depositor
  • Offline
  • Thu, 06/11/2008 - 17:26

Also an AXA bond holder. Had 3 "standard" letters from them but they contain little information ! There don't seem to be many AXA "victims" compared to Royal Skandia, or am I not looking in the right part of the web site.


Cause of Action against the IFA recommending investment

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
  • Offline
  • Wed, 22/10/2008 - 11:15

If the adviser did a fact find, assessed your attitude to risk as low and then advised you to invest in KSF using the bond and then failed to monitor the deteriorating position of the Icelandinc banks (i.e. in March 2008 estimated 7.5 times more likely to default than a European Bank per Morgan Stanley report) then you may have a cause of action against them.
You should gather your materials and take some advice
The IFA will have professional indemnity insurance, and you also have the possibility of recourse using the Financial Ombudsmen scheme.


Friends Provident Bond

  • Hong Kong
  • 12/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/10/2008 - 14:12

Hi all

thanks for the posts. Am in the same position but with Friends Provident who just sent me a similar useless letter through my IFA in Hong Kong. ANyone else in similar position in HK? Is there someone with legal adviser recommendations or who understands the position?