CyprusLiving

Hi
Has anyone had any dealings with capital protected income bonds.Its just something caught my eye in the Cyprus Living Magazine and thought it may suit my needs,especially that they are exempt from the 30% defence tax.

tonee wrote:Hi
Has anyone had any dealings with capital protected income bonds.Its just something caught my eye in the Cyprus Living Magazine and thought it may suit my needs,especially that they are exempt from the 30% defence tax.

interesting I also would like to know more ?

Tonee
From the limited knowledge I have of this investment, the protection applies to the company underwriting the plan. If the underwriter is not regulated then there is no protection. I don't have a copy of the article, is there any more detail that you could provide?

Hi
Thanks for your reply.It was an article by Hollingsworth who are based and regulated in Malta.They state that the present offer is 6%,paid monthly and free of the defence tax.
If you go onto their website hollingsworth.eu.com you can access the full article.
What are Marks thoughts on this?

This is a very interesting and topical question. There are a number of advisors 'touting' structured products as the best thing since sliced hovis! However, it is not often that I come across a client who fully understands the product they have. These deposits, notes & bonds are very often mis-sold. They are complex financial instruments aimed at professional investors who are supposed to be able to understand the inherent risk. However, many 'advisors' are selling professional investor products to retail investors who really do not understand the risks.

this has reached such proportions within Europe that the regulator - ESMA (European Securities & Markets Authority) have recently issued a warning which I advise all to heed: http://www.esma.europa.eu/system/files/investor_warning_-_complex_products_20140207_-_en_0.pdf

I also recommend only dealing with advisors licensed to give investment advice locally (local regulator is CySEC, not to be mixed up with the ICCS which covers insurance intermediaries), and get a second opinion. There are some reasonable 'retail investor' products available.

If you would like an opinion on a specific product, please feel free to pm me or contact by the details below.

All the best