it looks too good to be true.
How can the bond yield allow an investor to be paid an attractive 250% of any potential the fall of the Reference Basket?
I cannot invest in a product I don't understand
How can the bond yield allow an investor to be paid an attractive 250% of any potential the fall of the Reference Basket?
10%
deposit interest over 12 months*
This confusing advertising is disgraceful. And it's a further disgrace that it is not stopped immediately by the Central Bank.
Warning: If you invest in this product you could lose 7.5% of the money you put in.
Ulster Bank Ireland Limited accepts no responsibility for the accuracy or otherwise of the information set out in this brochure
nor has it verified the accuracy of such information other than the information directly relating to the Bank.
But put my strong criticisms of their brochure and advertising to one side for the moment, what is this product about?Warning: Deductions for charges and expenses are not made uniformly throughout the life of the product, but are loaded disproportionately onto the early period.
If an investor withdraws from the bond prior to the end of the 3 years, 9 months term, the practice of front-end loading will impact on the amount of money that the investor receives.
However, it also says:Warning: Deductions for charges and expenses are not made uniformly throughout the life of the product, but are loaded disproportionately onto the early period.
If an investor withdraws from the bond prior to the end of the 3 years, 9 months term, the practice of front-end loading will impact on the amount of money that the investor receives.
I did a review yesterday of the Irish Life Clear Tracker. I don’t like Tracker Bonds but have a look at the way they explain the product and the clarity on the charges on Page 20€0 or 0.00% will be taken in charges.
By comparison, just under 80% of the Bespoke Investments Product goes on deposit. But we have no idea how much is going on charges.81.52% of your investment will go on deposit
9.56% of your investment will be used to buy the option
8.92% of the investment will be taken in charges.
5.57% will be taken in charges"
So if you buy this product you are giving up the interest on your money for 3 years and 9 months in exchange for something which costs 3.34%. This shows that it is terrible value.
Brendan
What is CPC?
If the original ad was misleading does that mean that everybody who 'invested' in this product is allowed to take their money back without any fees or charges?
Does the central bank, who are in charge of regulating this presumably, order the product suppliers to notify customers who have taken out the product on the basis of the first ads that a) the ad is misleading b) they may have been misled c) they can get their money back?
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