Is there a difference between savers and investors?
Thursday Jun 04, 2009
The case of the Presbyterian Mutual Society in northern Ireland is s sad one demonstrating the difference between an investment having FSA backing and not. What I don't get is the tangible difference between an investor and a saver, but the minister involved seem to as discussed here.
From Shaun Woodward, Secretary of State, Northern Ireland Office.
We have to recognise again that these are not savers; they were investors. As such, they made an investment as risk capital in the form of withdrawable shares and loans. There is an issue about whether or not this should have been regulated; it was registered; it should have been regulated. There is an issue that I continue to want the FSA to look at, but I am not trying to evade our responsibility. If we can find a way to help these people, we should do so. I am prepared to break the bureaucracy to do it, if it is at all possible.Issues of regulation aside, I would have thought that savers were just investors with a low risk outlook. I expect those who stand to loose here thought they were taking out low or no risk investment with a low risk of capital loss. A lack of the word "risk" in the discussion is worrying.
Next race is the Welsh 1000m on Saturday. A few years ago a well known running magazine put it in its running calendar as a 1000m track event. Not quite.
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