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Offshore Money Managers

THIS IS A COMPANY WE DO NOT RECOMMEND.

see index page

 

Offshore Money Managers     OMM

        (Principal: Colin McCready).

 

This company has registered with the Direccion General de Seguros (DGS) but this does not authorise them to deal in market traded funds as described above.  Their activity is limited to insurance products only)

 

Note, however, that OMM's status as a fully regulated and licensed entity under the Dirrección General de Seguros only became effective from April 2002. The investments which are the subject  to complaint effected prior are not established under the jurisdiction of the D.G.S
 
 OMM and Equity Release SPAIN

OMM have been selling so called Equity Release (but which is not equity release - it is simply capital raising via short term loans against the value of real estate with an additional charge against the funds raised by the borrowing when later invested)

OMM and others have been relying on the advances from Icelandic Bank, Landesbanki and the following article and the attached may suggest that they have bitten off more than they (Landsbanki) can chew given current pressure on the Icelandic banking community.  The banking industry in Iceland is under immense pressure at present with interest rates rising last week to 11.5% and looking to go higher.  If they decide to call in the short term loans from those who have raised funds under the OMM scheme the proverbial will then hit the fan.........stand clear!

The weakness of the Icelandic Krona is causing considerable international concern.   It is normal practice for banks to borrow (or rather use the) funds of those with cash deposits as well as raising funds from external sources, such as other international banks.    The problem is that if your domestic currency falls and your local interest rates rise the  lenders have much reduced security and in this case it has led to outside lenders refusing to roll over large value loans.

Such funds are then used for other commercial projects.   One such project that Landesbanki are involved in is the short term lending currently being advertised erroneously in Spain as “equity release” (the ads talk of reductions in Spanish succession tax and then the borrower is persuaded to enter into a renewable 5 year loan i.e. renewable at the bank’s discretion).

Now here is where the math gets difficult!!

The Icelandic Krona has fallen against the Euro by around 20% since the beginning of the year and the Icelandic banking industry is in crisis.  Last week when rates were raised to 11.5% in Iceland - can you imagine the concern of the international lenders to such banks?

In essence Landesbanki now have funds loaned to EU based borrowers at rates around 5.5%, they are not having the existing international loans rolled over due to concern over the future security and now if the bank want to repay Euro or Dollar borrowings they need to find 20% more Krona than was required at the beginning of the year…….it is not good news for Landesbanki, OMM nor any borrower. If as I suspect the loans are called in early (and they can be recalled at any time subject to the required notice) those who have borrowed will be required ot repay from the net funds available after all the charges have been paid for the raising of the loan and for the set up of the associated investments….there will be a shortfall between the amount borrowed and the amount repayable in most cases in my view and whilst I hope that no-one’s home is really at risk this will have been an expensive exercise and have achieved nothing at great cost if this scenario should come about.

March 25, 2006

Icelandic Banks

Ooops!

ICELAND’S three biggest banks had their finances called into question last night, after US institutions refused to extend some of their loans to the banks.

A group of US insurers and mutual funds yesterday decided not to roll over $600 million of so-called short-term extendable notes they had made to Kaupthing, the icelandic bank.
The lenders also decided not to extend $200 million of the notes — which were issued a few months ago and would typically have been renewed every month for five years — made to Landesbanki, a rival to Kaupthing. Landesbanki provided the £162.8 million of debt used to finance yesterday’s acquisition of Wyndeham Press Group, the British printing and marketing firm, by Dagsbrun, the Icelandic telecoms firm

Classic banking mistake, borrowing short to lend long. Everyone does it, of course, but in moderation. Get too extended and all it takes is as above, someone to not roll over the short-term debt and you’re screwed.

Iceland’s biggest banks have grown so fast in the past three years that the loans they have made are now three times as great as their deposits, Mr Thomas said. A solid European bank would typically have a loan value of between one and 1½ times its deposits, he said.

Ouch.

March 25, 2006 in Business | Permalink

TrackBack

 Times Online

 

The Times

March 25, 2006

 

Icelandic banks refused extensions on loans

ICELAND’S three biggest banks had their finances called into question last night, after US institutions refused to extend some of their loans to the banks.

A group of US insurers and mutual funds yesterday decided not to roll over $600 million of so-called short-term extendable notes they had made to Kaupthing, the icelandic bank.

 

 

The lenders also decided not to extend $200 million of the notes — which were issued a few months ago and would typically have been renewed every month for five years — made to Landesbanki, a rival to Kaupthing.

Landesbanki provided the £162.8 million of debt used to finance yesterday’s acquisition of Wyndeham Press Group, the British printing and marketing firm, by Dagsbrun, the Icelandic telecoms firm.

Richard Thomas, an analyst at Merrill Lynch, said: “We are seeing the classic signs of an overleveraged banking system and this has flashed a red alarm signal. The banks are extremely vulnerable and it is clear that the sentiment is shifting against them.”

Iceland’s biggest banks have grown so fast in the past three years that the loans they have made are now three times as great as their deposits, Mr Thomas said. A solid European bank would typically have a loan value of between one and 1½ times its deposits, he said.

Alex Birry, an analyst at Fitch, the ratings agency, said: “The funding costs of the banks will start to go up and this will restrict scope for further growth.”

Gudni Adalsteinsson, of Kaupthing, said: “The US lenders in question have limited investment criteria. I can’t see that this will have an impact on the situation in Europe.”

Glitnir, another of Iceland’s biggest banks, also failed to roll over some of its short-term extendable notes.

BIG BACKERS OF DEALS

·  Landesbanki: backed leveraged buyouts of Mappin & Webb and Whittard of Chelsea

·  Kaupthing: last year acquired Singer & Friedlander, the merchant bank, and has financed many deals for Baugur, the Icelandic investment firm

 

 

To: Colin McCready
From: David the Dogman <david@thedogman.net>
Subject: Ref Mrs Andrea Earl
Cc:

Attn Colin McCready
Offshore Money Managers

Dear Colin

Re Betty Andrea Earl
Apt 616 La Torre de Marbella
Calle El Fuerte 4
29600 Marbella.

I am heading The Costa Del Sol Investor Compensation Group which now comprises of 40 families..
We now have a new member Mrs Andrea Earl  of Marbella for who I am acting and send you attached her authorization..
I have today checked with the CNMV to establish whether your are legal and it appears your company is not registered with the CNMV and is therefore acting unlawfully.

I would also mention that neither the 'old Labro' or Brewin Dolphin are registered as required in Spain and therefore they too have acted unlawfully. I am advised by the CNMV that offshore product producers need to be registered with the CNMV and that part of the conditions applicable is that they use a registered IFA under the CNMV and that the products are not sold to Spanish Nationals or Residents.

I have had a  look at the investment and fail to understand why you have let this slip away from 80K down to 50K. One would have thought that you would monitor this and keep in mind that the lady is 80 years old and not at all in good health. Surely this investment could have gone into a holding account earning some interest!

At your initial meeting with  Andrea did you under normal financial service good faith take a complete facts find from  Andrea  which would in normal circumstances cover her risk requirements for income or growth and if this is the case, could I have a copy?
Although you have no licence to operate you have a duty of care. I do not believe in this case that you have shown a duty of care, therefore I am seeking on her behalf some form of compensation.
Who is your company accountable to?
Do you have professional indemnity?
It is my intention to make contact with the compliance officer at Brewin & Dolphin and the regulator of Brewin both in London and Jersey.
However before doing so I would welcome an opportunity to have a chat.
Sincerely
David Klein
____________________________________________________________________________
From: "Colin McCready" <colin@offshoremoneymanagers.net>
To: "David the Dogman" <david@thedogman.net>
Subject: Re: Ref Mrs Andrea Earl

Dear David,
 
Thanks you for your recent e-mail regarding Andrea Earl and her attached letter of authorisation.  I recognise her handwriting and signature and am therefore more than happy to discuss her affairs with yourself. 
I am sure you are correct in suggesting that it would be better if we were initially to get together for a chat and would be obliged if you would call my P.A. - Pippa - early next week to arrange a suitable meeting.  I hope it will be possible to hold that meeting here in our offices as I am extremely busy right now getting out our next Investment Bulletin.  It will also give you the opportunity of having a good look at our company and how we run it.  If Andrea was able to attend that would be very useful too.  Please give her my regards when you next speak to her.
 
 
Colin McCready BSc
Senior Partner
________________________________________________________________________
To: "Colin McCready" <colin@offshoremoneymanagers.net>
From: David the Dogman <david@thedogman.net>
Subject: Re: Ref Mrs Andrea Earl
Cc:

Hello Colin
from what I have seen I am aware of how you run your company.
 My concern is that the value as of today is £43571.00 and this shows that since March of this year until today a loss of some 14K. How on earth are you going to replace this 40K you have seen shrivel away of the past few years the lady is 80 years old, she is unwell and has no other money? How is she to live?
It would seem that you have no duty of care, otherwise you would not have allowed this to happen.
If your able to see me at my home that will suite me, if not then we will do this by phone it will not take long.
I am of the opinion that the Direccion General de Seguros should also be aware of this case.
I now await your call
David
_________________________________________________________________________
To: Colin McCready
From: David the Dogman <david@thedogman.net>
Subject: Re Andrea
Cc:

Colin
I was obviously disappointed that you refuse to have a chat.
On the other hand I cannot expect  too much , after all your not answerable. I doubt you could answer any question I have put to you in my emails.
You are aware that I am now in contact with Peter Smart and Stuart Sangar. Meanwhile I assure you that if Brewins take the same attitude as you,  I shall not hesitate to take such action as I see fit to bring this matter to the regulators and public attention. I have to do this since you refuse to have a discussion. What are the public expected to do if they complain and get the run around?
You simply have  confirmed  that you have no duty of responsibility or care.
I really have tried to deal with you in view of a mutual friend.
David Klein

Copy Peter Smart
________________________________________________________________________
To: Gibraltar FSC Brian Morris
From: David the Dogman <david@thedogman.net>
Subject: Mrs Andrea Earl/Labro
Cc:

 
Mr Brian Morris
Gibraltar Financial commission

Dear Mr Morris

Ref Mrs Andrea Earl / Colin McGreedy Offshore Money Managers

Thank you for giving me your time and explaining some procedures to me.
I understand and I would seek your clarification from you that in the event that you find a company under your jurisdiction out of order or acting incorrectly, this has no financial benefit to the person who makes the complaint. In other words there is no direct protection or compensation for complainants. One has to go to the Courts.
If this is the case, may I ask why this is not made public?
 
I send you a copy of the Authority I have to represent Mrs Earl.

Mrs Earls original application form with Labro Global Funds is dated 16th April 1998. with the IFA Colin McGreedy.

I have had a look at the investment and fail to understand why Colin McGreedy allowed this to slip away from 80K down to 43K. One would have thought that he would monitor this and keep in mind that the lady is 80 years old has no other money whatsoever and not at all in good health. Surely this investment could have gone into a holding account earning some interest!

At the initial meeting with Andrea Earl I question if under normal financial service good faith if a complete facts find which would in normal circumstances cover her risk requirements for income or growth was taken. I have asked for a copy and OMM refuses to answer this point.

Colin McCreedy has a duty of care. I do not believe in this case he has shown a duty of care, My concern is that the value as of today is £43571.00 and this shows that since March of this year until today a loss of some 14K.

I do not think it reasonable to expect at this great age those with no other capital to sit out an investment, I wonder if he would put his mother into such an investment and leave her in it!

The lady is 80 years old, she is unwell and has no other money? How is she to live?

I would mention that I level no complaint at the way the funds have been operated, the complaint is simply that this is the wrong investment for a lady with no other capital and with a restricted income of approx £170 a week, was mis sold. It is not reasonable that an IFA can expect senior people to take vast drops in investments when they have no other capital whatsoever. Old people do not have the years to sit out

For the records sake Colin McCreedy has indicated to others that I am getting paid and have an financial interest. This is not true, I have no financial interest and do not charge fees or expenses. I do not give financial advice .

I look forward to your directives in this matter.
Your truly

David Klein
___________________________________________________________________________
To: "Colin McCready" <colin@offshoremoneymanagers.net>
From: David the Dogman <david@thedogman.net>
Subject: Re: Andrea Earl
Cc: "Smart, Peter" <PSMART@bloomberg.net>

Colin McCready
Offshore Money Managers
Marbella

Dear Mr McCready

I am aware that Andrea Earl has confirmed to you that I am acting for her. I am surprised you did not confirm, as  requested by both Andrea and myself for the sake of good order, that the situation has not changed according to your misinformed information given to you by your Secretary.

Having read and re read your communications to me, I am aware that you have no intention of answering my correspondence. so there is no point in having further discussions with you.

You seem to think we are blaming Brewins for their poor performance, we are not. You seem to think I am on a fee or percentage, I am not. I simply believe  that you have a duty of care, 'if' you did a 'fact find'  then I am certain this was not the correct investment. More so as the investment dissipated over the period she should have been taken out since she has no other capital or funds.

Surely you do not expect people in their 80's to sit out their investment when they have no other capital!  More so a senior lady who lives on her own and is unknowledgable about the market.

You  attach a lot of importance to the Financial Services in Gibraltar in your communications. Therefore I inform you that I have made an official complaint to the Financial Commission In Gibraltar whom will no doubt contact you.

I would however inform you in the event that  they find a company under their jurisdiction out of order or acting incorrectly, this has no  benefit to the person who makes the complaint. In other words there is no direct protection or compensation for complainants. There is no Tribunal or Ombudsman to appeal to. One has to go to the Courts.

I now await the outcome of Brewins Compliance Dept and any comments forthcoming from the FSC.

Yours truly
David Klein
cc Financial Commission Gibraltar / Brewin Global
________________________________________________________________________
To: "Colin McCready" <colin@offshoremoneymanagers.net>
From: David the Dogman <david@thedogman.net>
Subject: Re: Andrea Earl
Cc: "Smart, Peter" <PSMART@bloomberg.net>




Offshore Money Managers
24 October 01

 Mr McCready
Andrea Earl has informed me that your Secretary has indicated you have no wish to correspond with me and is asking her why I have referred this matter to the Financial Services.

Due to the fact that I have a written authority and you refuse to communicate with me, is good enough reason for me again to remind you that you are not licenced with the cnmv and are not answerable to them. If you were answerable you would be obliged to pass this to your compliance and act with all due courtesy.

I refer you to your communication addressed to Andrea dated the 8th October in which you in fact elect to refer this to the Gibraltar Financial Services.

I have not as yet made a complaint to the Direcion General de Seguros but will do so if I get no satisfaction from Gibraltar.

For your further information any people that I recommend to Kevin Neal, I also inform them that all they trading is through their UK offices and that they have the full protection of the PIA and SFA in the UK:

David Kein
______________________________________________________________________________
 


 

 

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