Usin a sipp to invest in cape verde

A question about : Usin a sipp to invest in cape verde

Hi

I have recently been contacted by a company called Global Choice who are selling me the idea of transferring my pension fund into a sipp (?) and buying a propety in Cape Verde. The figures he quoted on the return seemed too good to be true ( av 19.6% pa)
I haven't got a clue really what to do , the returns look good but as for checking this company and the one in Cape Verde : The Resort Group out I wouldn't know where to start.
He assured me my money would be safe as its covered by HMRC regulations . Is this tru does anyone know ? Has anyone had dealings with this/these companies.

I am trying to get as much information as I can so I can make an informed decision on what to do .

Thanks in advance for any replies/help anyone can give me

Steve

Best answers:

• Steer clear. Any company that cold-calls you about your pension is breaking the rules and so, by definition, is dodgy.
• stand back and read your own post again!
  1. 'cold call' in finance = scam. Not just sometimes but always.
  2. transferring your pension - and so lose all the future employer contributions? (i.e. giving up free money.)
  3. do you know anything about Cape Verde? where it is, the climate (windy!), how undeveloped the tourist industry is, the bad reviews on Tripadvisor. Have you met anyone who has been there?
  4. If it seems too good to be true, then it is. Always.
  5. HMRC make regulations to take your money away (taxes), not save or protect it. (therefore bullshine).
  6. I think you know the answer already, just needed confirmation.
• It's a property investment in a foreign currency in a country you don't know. The risk factors are piling up on top of each other.
  Quote:
• Follow the golden rule:
  "If something seems too good to be true, it almost always is"
  I've had clients (from previous advisers) who have been burnt by this type of investment. Do some research into Stirling Mortimer.
  I would be very very surprised if this is not a UCIS (UNREGULATED Collective Investment Scheme)
  Keep WELL clear.
• Did he tell you which Island the "cash cow" was located on ?
• and if residential property, not allowed in a Sipp anyway.
  SCAM written all over it, avoid
• I was cold called by First Review Pension Services (not regulated) who arranged for a company called Capital Facts to obtain (with my authority) balance details from my pension providers, under the auspices of a "free pension review"
  The advisor arrived from a company called Choices Wealth (not regulated) and started talking about how my pension was underperforming and would not produce much of a pension if it carried on as it has done the last 12 years.
  Then he started talking about alternatives, except he was talking about one very specific alternative in particular, which was moving my pension funds into a trust fund creating a SSAS (they would set up a company for me in my name with me as the sole director). The SSAS would be administered by a company called Bespoke Pension Services (but they also use Cantwell Grove and Rowanmoor).
  They would use the funds to purchase a fractional interest in a hotel development on Boa in the Cape Verde Islands, developed by The Resort Group and managed by Melia ("the worlds largest resort based hotelier"). Lots of facts and figures about how Cape Verde is the next Caribbean and tourism increasing there year on year. The minimum investment is Ј23000, conveniently exactly what I had available.
  I would then get rental income from my interest during the period it is occupied (296 days a year on average) split between me and Melia. The fraction itself would increase in value from my initial Ј23000 to Ј40000 based on 6% growth per year (blah blah blah) I'd be locked in for 5 years but could sell it after that. The rental income would start immediately and would be reinvested into my pension fund by Astute Financial Management, along with my own continuing contributions. Ultimately the value of the fraction would go in the pot too. He gave some impressive projections (but they always do) and dismissed my concerns about earthquakes, wars, political upheavals and economic collapses, they way they do. All the parties involved have a legitimate appearing internet presence, of course.
  He did say that HMRC will only grant approval to certain types of overseas property investment because they lose tax opportunities if my pension goes belly up. This particular type of investment is one which they approve. He also mentioned the involvement of reputable firms like Deloitte, Savills and Metro Bank dealing with accounting, valuing and banking.
  I said I was interested but would get independent advice. He told me I'm not locked into anything until I sign the fund transfer papers.
  I don't know if it is a scam or not, there are a lot of people working for these companies and they are a big operation. I know they are more interested in flogging their fractions than what happens to my pension, but underneath it all it is possible it might be a fruitful investment. Until I read these pages I was leaning towards signing up. Now I'm not so sure. Isn't every investment a leap of faith to some degree?
  I don't know if I will leap or not but I imagine other people will be in the same position as me and maybe this post will come up if they type the same names into a search engine. I hope others will contribute with their experiences and advice so that if it is a scam, people will be warned, and if it is a kosher pension investment, people will be reassured.
• Frightening degrees of gullibility and predation
• The cold call is a bad start. Even if it isn't a scam could you afford to lose this pension fund or see it drastically reduce in value? This could happen if it doesn't take off and people prefer to stick to florida, the west indies and spain for their hols. The hotel room(s) in your pension fund could then prove tricky to sell on to anyone.
  I don't know the detail of the deal but if it was a sure thing I imagine they wouldn't have to tout around normal folk for business, big money would be snapping the opportunity up. In my view, steer clear, stick to boring old Pru or whatever and be sure of your retirement fund.
  It's a different type of unusual investment and in a different sort of scheme but here's a cautionary tale of one poor chap who lost a lot.
  https://www.ftadviser.com/2015/01/21/...article-0.html
• I am not a pensions guru but my simple laymans thoughts are, if you can't afford to lose it don't invest it.
  I have some knowledge of the Carribean Islands and have seen many resorts start building and then lay dormant unfinished for many, many years. These all had people's money tied up in them and all that's left is builders rubble and rebar with weed growing through them, they will never be restarted. These sites need to be cleared again and completely restarted.
  Most Caribbean countries are very poor, third world economics prevail, some don't even have direct air links from the developed world. Think twice and then think again.
• StephenCo - If I get this right you've been contacted by a non-regulated company, who put you in contact with another non-regulated company, who propose to set up a trust with another (presumably) non-regulated company who are going to sell you parts of a building site on a promise that it will go up in value - see anything wrong with this?
  You seem like a generally sensible person reading your post, however, sorry to be blunt, why are even considering doing something so bloody stupid as investing your entire pension that (just so conveniently) happened to match exactly what they needed as a minimum investment after they'd been given access to view your details?
  Would you accept a cold call from someone who says he has a dead cert on the 16:15 at Doncaster and then hand over all your cash on a verbal promise to make sure you double your money?
• I've recently been invited to participate in a 'once in a lifetime' Investment by the Fee-fi-fo-fum Corporation, in a selection of Magic Beans. Bearing in mind the current gloomy returns in many other Investments, I've been advised that Magic Beans can only go up.