Some of the problems of these investments
In Spain, financial and investment advice has always been provided by the bank. We can honestly say that Spanish banks have not done a satisfactory job, taking into account all the scandals they have been part of, associated with high-risk investment products, such as preferred shares, convertible bonds, and participative quotes.
In addition to the false and often malign advice from banks in Spain, Companies and alleged Experts in investment and financial advice, many of which often hold the same nationality as the client, have caused and continue to create a multitude of problems for expats.
We have been able to detect some of the problems of these investments:
- Sale of high-risk investment products without providing a full risk assessment. Such risks can result in a total loss of capital.
- Sale of illegal or worthless products, e.g.: Products made for the sole purpose of avoiding tax, such as with Inheritance Tax, which in some cases are illegal, while other investments are simply of no use.
- Problems recovering investments, or getting the insurance premium paid out. Often investments are made offshore and under risky terms, so when clients or their heirs try to recover the funds, all kinds of obstacles, such as delayed payments tend to appear.
- Problems with maligning and hidden commissions, expenses etc.
- Illegal advisers and financial “CHIRINGUITOS”.
Individuals or Companies who can act as legal financial advisors in Spain are those stated in law 47/2007, however, there are numerous advisors which act illegally, and are not registered with the National Commission of the Stock Market (CNMV). Some of these investment advice companies are well known amongst expats, but are illegal and dangerous, to the extent that the CNMV has published an information guide to warn from illegal services.