"Investors who put savings totalling £236 million into bust high-risk bond firm London Capital & Finance today told of their fears for their cash.
Directors of the controversial business called in administrators this week, leaving 14,000 people worried about their savings and, in some cases, the pensions they had handed over to the firm. "
Etc on evening standard
[https://www.standard.co.uk/business/angry-investors-attack-collapsed-highrisk-bond-company-london-capital-finance-a4055421.html ] (thanks hrp)
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Be careful out there
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- Lemon Half
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Re: Be careful out there
https://www.standard.co.uk/business/ang ... 55421.html
"Mini-bonds" again, which as far as I am concerned are not really bonds. Never been tempted by any mini-bond I have looked at. Risk always way too high for projected return, especially so when lack of liquidity is factored in.
"Mini-bonds" again, which as far as I am concerned are not really bonds. Never been tempted by any mini-bond I have looked at. Risk always way too high for projected return, especially so when lack of liquidity is factored in.
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- Lemon Half
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Re: Be careful out there
hiriskpaul wrote: Risk always way too high for projected return, especially so when lack of liquidity is factored in.
They are supposed only to be marketed to high net worth and/or experienced investors.
Like SIPPs which allow "exotic" investments, they seem to fall through the cracks in investor protection, particularly when they are included on comparison sites alongside conventional deposit accounts.
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- Lemon Slice
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Re: Be careful out there
Alaric wrote:hiriskpaul wrote: Risk always way too high for projected return, especially so when lack of liquidity is factored in.
They are supposed only to be marketed to high net worth and/or experienced investors.
Like SIPPs which allow "exotic" investments, they seem to fall through the cracks in investor protection, particularly when they are included on comparison sites alongside conventional deposit accounts.
I only started self investing 6 months ago and I had a number of discussions with them and they were not interested in my financial standing, only in my money (I suspect high commission structures for the salespeople (oops, advisors)).
Applying the addage, "If it sems too good..." I decided against. But it is easy to see why so many speculated.
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- Lemon Half
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Re: Be careful out there
From the Evening Standard 1 February 2019
Now see viewtopic.php?f=11&t=16667 over at Bank Accounts Savings & ISAs.
dspp wrote:"Investors who put savings totalling £236 million into bust high-risk bond firm London Capital & Finance today told of their fears for their cash.
Directors of the controversial business called in administrators this week, leaving 14,000 people worried about their savings and, in some cases, the pensions they had handed over to the firm. "
Now see viewtopic.php?f=11&t=16667 over at Bank Accounts Savings & ISAs.
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- Lemon Slice
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Re: Be careful out there
Basset & Gold. Bonds paying 8.15% for years = 50+% compounded over 5 years.
I'm not sure what the rules over links are but Bond Review have a decent article.
£30m raised. Net assets £234k. All loans go to one company and then what they do with them is opaque.
I met this company at a conference and for about an hour I was tempted by their 30 day notice account giving around 3.25% from memory, because well I could see the risk, didn't want to risk a 3 or 5 year bond and in my head I could see the problems coming and get my money out before the meltdown. I'm glad to say the "too good to be true" mantra did kick in and I have not invested despite their telephone calls and the emails I get every other week or so. What I have been watching is their interest rates which having slowly been going up and up.
I see this whole mini-bond sector unravelling badly. Like cascading dominoes.
Be careful out there!
I'm not sure what the rules over links are but Bond Review have a decent article.
£30m raised. Net assets £234k. All loans go to one company and then what they do with them is opaque.
I met this company at a conference and for about an hour I was tempted by their 30 day notice account giving around 3.25% from memory, because well I could see the risk, didn't want to risk a 3 or 5 year bond and in my head I could see the problems coming and get my money out before the meltdown. I'm glad to say the "too good to be true" mantra did kick in and I have not invested despite their telephone calls and the emails I get every other week or so. What I have been watching is their interest rates which having slowly been going up and up.
I see this whole mini-bond sector unravelling badly. Like cascading dominoes.
Be careful out there!
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- Lemon Slice
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Re: Be careful out there
And here's another questionable minibond ISA
https://fluidisa.com/
It seems the FCA are getting their teeth into risk warnings (with a little push from Mark Taber?) I'm sure they have changed in the last few weeks and are now more transparent and make it clear your investment is at risk
https://fluidisa.com/
It seems the FCA are getting their teeth into risk warnings (with a little push from Mark Taber?) I'm sure they have changed in the last few weeks and are now more transparent and make it clear your investment is at risk
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- Lemon Half
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Re: Be careful out there
Gan020 wrote:...
Tony Hetherington's article here https://www.thisismoney.co.uk/money/exp ... cheme.html is entitled:
Regulator must see the light on 'solar' scheme that promises to pay up to 8% interest
It concerns a Whitehorse Solaris Bond and a Prime Guard Limited.
I'll leave it to readers to study as needs be.
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