Couples blame investment firm for losing their life savings

Simon Vella

Sep 14th 2012, 09:57

I hate to contradict some of the comments below but in my 18 years of experience in the finance industry I have noted that banks are not always the safest form of investment. Far from it. This has been proven many times over. If we look at recent history we can see the Lehman brothers' case and closer to home the elder folks will surely remember Bical Bank.

Not all banks are the same and as always there is a risk / reward ratio which has to be respected. The higher the interest = the higher the risk. It's simple. There has to be a reason for anybody to offer higher than average interest rates be it a bank / bond / fund etc etc usually this translates that they must have a higher than average risk. In today's climate anything more than 3% from a bank IS risky and that is a fact. If the bank you are talking to comes out with the excuse that "don't worry, if we go bankrupt there is always the government €100,000 security" is showing you that they lack faith in their ability to cover the debts and should set alarm bells ringing

Many might not agree because they want to believe that there MUST be someone with a magic wand out there that gives a guaranteed high rate of return, with no risk on capital and no charges but these people are usually just setting themselves up for disappointment.

P Pace Balzan

Sep 14th 2012, 08:55

Extract : "Dr Filletti said the Malta Financial Services Authority last month upheld their claim and ruled that All Invest had acted incorrectly and in an abusive manner when it sold the financial product to the four couples."
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If this is the case why did the MFSA not publish their findings on their website ?:
http://mfsa.com.mt/pages/AdministrativeMeasuresPenalties.aspx

Jesmond Chetcuti

Sep 14th 2012, 08:36

`the past is not a gurantee of the future` in small print....remember that always...

Joseph Ellul

Sep 14th 2012, 06:55

Another one of those claims that will end in "Anno Mai"!!!

Joseph Bajada

Sep 14th 2012, 06:36

We all pitch about banks and the low interest the pay , but they have other product which pay a reasonable interest with the added security of bring a bank not some shoddy goose who invests your hard earnedmnew and if it fail its your fault because he told somewhere in that contact that he is not responsable .

John Azzopoardi

Sep 13th 2012, 23:30

Be care ful where you invest. As everyone knows, nothing is more safer in banks, If you invest with someone that is not a bank, you are investing at your own risk.

john muscat

Sep 13th 2012, 22:10

Now we will judge how the courts will decide. Hope that justice is done to these couples.

mark borg

Sep 13th 2012, 21:47

I think that MFSA is also responsable for not shuting them down,although I am not sure if this is within their remitt.
As just warning the public that this organisation was not licenced is surely not enough, someone should be responsable to ensure that their operations are ceased and not left operating.

carmel muscat

Sep 13th 2012, 21:17

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