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Top Dollar
Top specialist at Over 50s Show INTERNATIONALLY acclaimed coin, medal and stamp specialist Mike Kelly (below) is set to appear at the Estepona Over 50s Show at the end of November. Appearing alongside Eric Knowles - renowned for his appearances on BBCs Antique Roadshow - Kelly will be on hand to give free valuations of coins, notes, medals and stamps. “I’m looking forward to meeting expats and advising them,” Kelly said. “I know there are a lot of retired service people living on the Costa so I anticipate great interest.” Kelly is not only one of the world’s foremost coin collectors and numismatic experts, he is also the organiser of the International Coin and Stamp Fair at the Royal Dublin Society, which has been running for 20 years. He has written several best selling books on coins and medals and is a regular on UK and Irish radio and TV, giving advice on the value of Irish and British coins and stamps and what to look out for as a collector. The Over 50s Show takes place at the Palacio de Congresos, Estepona on Saturday November 28 and Sunday November 29. For further information contact info@slp.ie
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the Olive Press October 28th - November 11th
October 28th - November 11th 2015
Road to Riches, by Richard Alexander
Exotic or toxic? Expat Brits are being targeted for poisoned chalice investments
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FTEN packaged as exoticsounding investments promising income generation or capital growth way above the norm, buyer beware of UCIS. UCIS stands for Unregulated Collective Investment Schemes and the Financial Conduct Authority has labelled them ‘toxic’. Their sale was severely restricted in the UK by new legislation which came into force on January 1, 2014. But now expats globally are being targeted by the sellers of these lucrative products. The law was designed to protect what the regulator calls ‘retail investors’ from UCIS which, by their very nature, often comprise complex financial instruments, the true workings of which can only be fully understood by their creators. For ‘retail investor’ read ‘man in the street’ – the ordinary Joe Public who would not want to take significant risks with their money.
Before the regulator stepped in, the sale of UCIS in the UK saw casualties as the underlying investment structures fail to produce the promised returns. The failure of Lehman Brothers back in 2008 saw many such schemes fail. For the first time, people realised that it was not only market risks which affect investments. For these types of product, the ‘counterparty’ risk should also be considered. That is where a supposedly reputable financial institution with all the right ratings and agency accreditation stands as some kind of guarantor behind the arrangements. However, if they fail as was the case with Lehman’s, their guarantees become worthless and the vulnerable investors are the losers. Arguably, for experienced sophisticated investors, UCIS do have their place and offer some opportunities but only for those who really understand the risks. Even then, if there is any kind of run on the investments – as was the case when the UK regulator labelled UCIS
toxic – funds are often suspended to protect the majority while the schemes are unravelled, which can take years. If this was your nest egg relying on immediate returns it could leave you in a very difficult place, as many such investors have found out to their cost. And that always presupposes that the investments were legitimate in the first place. All too many are out-and-out scams. As always, it is the vulnerable who are most at risk. And, as the UK regulator closed the door to UCIS in Britain, sales teams are looking for softer targets and homing in on the expat market around the globe. The sellers earn high commissions, the cost of which is often disguised within the contract and will typically be skimmed off your investment at the outset. Their sales patter is very slick and reassuring as they tell you what you want to hear. But the difference between ‘exotic’ and ‘toxic’ is only the letter ‘e’. You have been warned.
Richard Alexander Financial Planning Limited is an appointed representative of L J Financial Planning Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Contact him at Richard@ra-fp.com