Mutuals deny risky securities
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.