So lets talk loan notes…. offering 24% returns to investors over 2 years but on top of these returns, also paying Holborn Assets DOUBLE DIGIT* commissions for offloading this product onto unsuspecting clients.
*Although Holborn do tell their sales staff that the gross commissions received are a lot less. Meaning the Holborn board bank a nice 51% of gross commission for the profit pot.
My credibility has been questioned on some of my recent posts, mainly by Holborn staff posing as online trolls attempting to leave negative comments on my posts. As a result, I was going to wait to add a whole media section once I’d written all my articles, but will begin to upload docs directly with the posts. See below.
Type of clients
The types of clients this is being sold to include school teachers, cabin crew, or pretty much any Tom, Dick and Harry who has a minimum of £25,000 to invest. The importance of this point, is that these investments are being offloaded on to clients who aren’t exactly Warren Buffet. (Even the application form does not ask for client profession).
As part of the sales training, consultants are made aware that said clients are to be registered as “retail investors” and “self-certified sophisticated investors”.
How does a client get returns to good to be true
At this stage, I need to reiterate that I have no idea if clients are being paid their promised returns, but what exactly are clients signing to invest in this opportunity of a lifetime? Amongst other things, they are signing;
They need to accept they can lose their property and other assets.
They have no rights to complain to the FCA or Financial Ombudsman.
That it is an option to seek advice from someone who specialises on advising on investments. (For an investment being sold by a financial advisor??”
Accept the investments to which the promotions relate may expose a SIGNIFICANT RISK OF LOSING ALL OF THE MONEY OR OTHER PROPERTY INVESTED.
Is this appropriate for the client?
If I was writing this about most other financial products, the information collected through KYC would be exhaustive. But the entire client profile to deem “appropriateness and client categorisation” consists of;
- Full Name
- Daytime number
- Mobile number
- Email address.
Thats it!!!!!! The information above is enough to certify the client as a “self certified sophisticated investor” for a high risk investment where clients face significant risk of losing all of their money.
As with the rest of Holborn’s wrongdoings, there isn’t much of a mention of this product online. Seemingly something else they want to remain pretty quiet about. Holborn do this a lot, I’ve already written a post about their “its nothing to do with us when everything goes wrong” documents.
Docs to be signed by client…..
For the cynics who feel I’ve cherry picked the pages from the application form. The entire application is 9 pages.
- Page 1 – Cover page
- Page 2 – Confirmation of the amount, method of payment and how frequently client wants returns paid.
- Page 3 – Client name, contact details and bank account information.
- Page 4 – Above
- Page 5- Above
- Page 6 – Above
- Page 7 – Consultant name, signature and declaration they have “assessed the suitability of the investor in respect of their proposed investment in the Bonds and that they have satisfied the criteria in COBS 10 of the FCA Handbook”
- Page 8 – AML page explaining what is acceptable for Proof of ID and Proof of Address.
- Page 9 – AML page continued.
If this seems sparse, a full due diligence pack is available should the client request it.
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