Mutuals deny risky securities

Tim Wallace
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BUILDING societies’ new capital instruments are being unfairly classed as risky investments, the mutuals’ trade body said yesterday.

The core capital deferred shares (CCDS) play a similar role to a bank’s shares, and carry the same risk.

But the City watchdog wants to limit an investor’s exposure to five per cent of their total investable assets – a tougher rule than that which faces crowdfunded startups.

The Building Societies’ Association wants a 10 per cent limit instead.

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