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FSA says BoI bond buy-back falls outside its remit

The Financial Services Authority has told Bank of Ireland bondholders who are protesting against a buy-back offer from the Bank for less than the bonds’ market value that it does not have the authority to intervene in the matter.

The FSA says it has been contacted by a number of bondholders seeking its intervention, but says the issue falls outside of its remit as it concerns an Irish lender and is therefore a matter for the Irish regulator.

On August 24, the Bank of Ireland made a revised offer to bondholders to buy back the 13 3/8% unsecured perpetual subordinated bonds at 40% of their face value as part of a capital-raising exercise.

The FSA says that the bonds are capital instruments and not retail deposits, and therefore are not covered under the Financial Services Compensation Scheme.

In consumer information posted on its website, the FSA says that consumers affected by the buy-back should contact the Bank of Ireland directly or the Irish regulator, the Central Bank of Ireland.


Bogus broker given a suspended sentence

A man masquerading as a broker has been convicted of fraud after pocketing a £5,000 arrangement fee from a client. The Birmingham Mail reports Mohammed Aslam was sentenced to 12 months in prison suspended for two years and 250 hours of unpaid work.

Chesterton buys stake in Springtide

Property consultant Chesterton Humberts is acquiring a stake in mortgage firm Springtide Capital. Chesterton has not revealed the size of its investment but as part of the deal Springtide will operate as Chesterton’s exclusive intermediary for mortgage referrals. Chesterton’s investment will enable Springtide to expand its London and Edinburgh operations and develop its proposition in […]

Economic gloom is keeping a lid on property sales

Uncertainty surrounding the economy kept property sales depressed in August, the latest housing market survey from the Royal Institution of Chartered Surveyors shows. The number of sales per surveyor over the three months to August dipped slightly to an average of 14, taking transactions back to June 2009 levels. Meanwhile, average stocks on surveyors’ books […]


Private rentals can fill the housing gap

I read with interest a report by the National Housing Federation which called on the government to take action against the housing market crisis.


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