Safe Deposit Boxes are not 'safe'

Most ordinary and law-abiding citizens have no idea how much an unaccountable clique of professional politicians has already undermined all notions of justice and freedom. So just consider a few facts about a raid on safe deposit boxes that took place in London in 2008. Given that Britain is still a country whose legal system is held in high regard you may just imagine how your assets may be treated in other countries.

Aside from those three dozen or so people found guilty, the vast majority of the 3,500-plus box owners have turned out to be innocent. Yet their money was confiscated, and in many cases is still being held, by the Metropolitan Police or the Inland Revenue. The owners have spent nearly three years and thousands of pounds in uncompensated legal fees having to justify why they kept their personal belongings in safety deposit boxes and how they came by them in the first place. Worse still, when people have had their belongings returned, in some cases cash and jewellery has been missing. (London Evening Standard)

So readers should be careful about where they keep their wealth. We always advise to diversify holdings as much as possible with respect to geographical location and custodian.

Is my Adviser 'Independent' or 'Restricted'?

That is the question investors in the UK must ask themselves since advisers were banned from receiving commission for selling products at the beginning of 2013. While this reform (known as Retail Distribution Review) may help investors understand how much they pay for financial advice the changes can be confusing for customers that do not spend their whole time studying the intricacies of new regulations that even market professionals and their lawyers find difficult to interpret. One could also ask why reforms that are supposed to be beneficial for British investors are not also introduced in other jurisdictions.

A significant cause of damage for investors

Says article (Financial Times, 18 March 2013) that deals with another mysterious and opaque way that providers of investment services can use to fatten their profit at the expense of their 'clients'. How many investors will know the difference between 'creation' and 'cancellation' prices for their investment funds? But technicalities such as these can make quite a difference and sharp practices should be banned. In the absence of legislation investors are well advised to consult experts that can help them safeguard their hard-earned cash.

Does your adviser take secret commission payments?

One of the leading platforms for investment fund sales in the UK refuses to disclose commission payments to funds it sells through its platform (Daily Mail)

Investors awake and look after your interests!

'Price competition is largely absent from the (retail) financial services sector' writes Pauline Skypala, Editor of the FTfm Magazine (31 Jan 2011). She blames information asymmetry and lack of consumer engagement for this state of affairs. While we cannot expect all investors to attend university and learn about the most recent financial product innovations they can try to find outside help to defend their interests when dealing with financial advisers. High fees - not to mention risky investment strategies - present a serious drag on investment performance that can be reduced - if not eliminated - by careful analysis of fees, investment risk and performance statistics.

Are all private investors idiots?

That seems to be the assumption under which regulators in the EU and FSA publish a raft of consultation documents, guidance notes and draft new laws argues Matthew Vincent in the Financial Times. I would like to add that these diktats lack any democratic legitimacy as they are cooked out by unaccountable technocrats and bureaucrats that are not answerable to the citizens.

And you think you can rely on your pension?

Pension cuts ruled out after backlash

for now your pension may be safe, but for how much longer?