The collapse of the Farepak Christmas savings club has obvious parallels with the financial services...
The collapse of the Farepak Christmas savings club has obvious parallels with the financial services industry. First, and most obvious for me, is how the hell is a company allowed to get away with running a 'savings club' when there is no safeguard for the savings? The simple answer is that, as Farepak was not taking deposits (in the banking sense) or paying interest, it did not need a banking licence or to ring-fence its customers' money as advisers and other professionals have to. It is a frightening thought that an organisation could legitimately and so simply use the expression 'savi...
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