Friends Provident - anyone invested through them??
The money we had invested had just been taken out of the markets due to the uncertainty and deposited with KSF IOM on a 1 month rolling term deposit account.
Apparently Friends Provident deposit money in their name rather than the investors name....
They have said that if the worst came to the worst they would receive the £15k / £50k back from the Financial Supervision Commission and then have to be split between all customers - so potentially getting virtually nothing back.
Anyone else in a similiar situation??
Don't give up your offshore bond
The offshore bond is great product and most of you have paid for it's establishment. It has a value and will last your entire life! If you need to put money on deposit within the offshore bond, do it with a bank that has a government guarantee ie the Irish banks. Don't panic into more costs.
to laser blue eyes
yes i am ..i am with Clerical medical.iom.
Live in the UK, went to a financial advisor here in the UK ( beginning of August 2008)...got advice, about 12 accounts in different banks, through Clerical medical insurance ltd IOM ..notably KSF IOM.But FA suggested the 12 deposits at varying amounts of 35,000 and 50,000 were absolutely safe for UK citizens.He obviously didn't know that IOM has another gvt, other gvt to UK. Was good plan,i thought...until i realized this fact, one week over the 30 day option given by CMI to go or not go ahead with my deposits ( i have these deposits for under 2 months, i am a widow,with 2 teen sons, thought i was being super safe ,and responable taking advice, and paying for it ).I have told my FA that the accounts are only covered for UK citizens who deposited a themselves the money, not through a company for example CMI IOM.So, i am in a dilema. Shouldn't my adviser have known these facts???Especially concerning CMI IOM and depositors compensation.
Can't get FA , his phones off.
Pimki
Pimki - you asked me yesterday what I would do in your situation with other money. I would move your money out of the bond (enquire about surrender penalties taking money out of bond) and open up a number of accounts with mainstream high street banks in the UK each below the compensation threshold. This in my opinion is the safest move you can make.
Pimki
Yeah I had a lot of money invested in an offshore bond with Norwich Union and had circa £320K of that with KSFIOM. I requested a partial surrender on Friday of money that was with other IoM banks, I thought I could cancel it but KSFIOM money means I need to keep bond open. Hopefully money will come through tomorrow and when comes through will open up several accounts with high street banks in the UK.
you can have a laught here
you can have a laught here guys, i still have 200 shares in Friends Provident!!! they were so seless i forgot about crystalysing them earlier in the year!
Barbados
That sounds similar to me then.
Hmm, so if i move/ surrender i can't try to get compensation for KSFIOM.
Maddening as i went to an adviser , thought he would know the ins and outs better than myself, where and what i should i do with the money.
Good luck for tomorrow
barbados
I did on friday..waited for a return call and didn't get one.I shall be on the doorstep tomorrow.(Even then FA was saying he thought everything would be o k.)
People say don't panic...i don't have a job, decided to start a new career hence back to Uni. ..and boom!
Do you have similar problems?
Its held in a savings account
Its held in a savings account though with KSF IOM - they refused to break the term 2 weeks ago and Aidan guaranteed me the bank was safe until maturity which was the 27th of this month. FPI dont seem to know much about whats going on but the money is definitely tied into the mess somehow.
Just concerned that its under a institution as opposed to an individuals account - hopefully this wont matter but I guess FPI may need to argue that on our behalf.
Its a rolling one month term
Its a rolling one month term deposit account. We havent had it for long - maybe 3 months.
Investment through Insurance Company
I am in the same position as laserblues2 although my investment is through Aegon Scottish Equitable so any payout under the compensation scheme would be virtually worthless...so much for signing a fact find that stated that this money was to be 100% safe...
Investment through Offshore Investment Bonds
The Q & A document posted on the FSC website on 10th October suggests that the position regarding compensation for deposits made through offshore bond 'wrappers' is not yet entirely clear.
The position is to be determined in accordance with the regulations in force at the time an event of default has been declared by the Depositars Compensation Scheme (DCS) manager. As far as I know, an 'event of default' has not yet been declared and theTreasury Minister indicated on 9th October that the regulations might be subject to amendment.
I guess this offers some hope to the considerable number of people who will have made a deposit through an offshore insurance bond. Also, I assume that the insurance companies that operate in this marketplace (e.g., Royal Skandia, Friends Provident International, Aegon Scottish Equitable International, Prudential International, Standard Life International, Clerical Medical International, AXA Isle of Man etc.) will be lobbying the FSC to ensure that their policyholder's interests are taken into account.
IMHO any individual or company investing through an offshore insurance bond should be treated in the same way as direct account holders.
Laserblues2, I do not think your Friends Provident With Profits Bond will be caught up in this mess. Those affected are more likely to be holders of offshore 'portfolio' bonds that typically offer access to a much wider range of assets including bank deposits.
Aaitken
Re my previous post.
Sorry, got mixed up with who I was replying to! Meant to say:
Aaitken, I do not think your Friends Provident With Profits Bond will be caught up in this mess. Those affected are more likely to be holders of offshore 'portfolio' bonds that typically offer access to a much wider range of assets including bank deposits
chazzab
Thanks. I will contact FP tomorrow - I cannot afford to lose anymore money. When will it all end? Years of work wiped out!
Bear in mind that the Friends
Bear in mind that the Friends Provident With Profits fund will invest in shares and property so, although the KSF (IOM) issue is highly unlikely to affect the value of your FP investment, unfortunately, all the other things you will have recently seen heard and read in the media will!
Chazzab
I realise what you are saying is true - but I just could not face the loss of more money. The bond matures this year - sadly, there will be penalties for withdrawal due to a hefty MVA (due to market conditions) . It seems we take all the risk. I wish I had brought property - it always comes back in the end.
Friends Provident
Laserblues2 - what kind of investment do you have with Friends Provident? I am in a with profits bond - is this the product you are talking about?