Mutuals deny risky securities

 
Tim Wallace
Follow Tim
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.

Related articles