February 17 – Paying for others’ mistakes
In the last few weeks mortgage firms have been invoiced for the latest interim levy from the Financial Services Compensation Scheme. These were for eye watering amounts of money. The background to the majority of these costs are failed unregulated investments. Some were to fund Eastern European property builds whilst others were on carbon credits, forestry schemes, film funding and other esoteric investments. As some were undertaken through a SIPP vehicle brokers are held liable as they are part of the life and pensions intermediation class. The main cost in this bill however comes from compensation to consumers who borrowed money on an interest only basis to fund Eastern European property. They were dependent on the rental income to service the loan and for the sale proceeds to repay the capital.This content is for members only.
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