The collapse of mini Bond firm London & Capital could see investors losing over £230 million.
As is increasingly common, London Capital & Finance promised investors returns of 8% in a fixed rate ISA. These ‘mini-bond’ investments are unlikely to be a regulated activity and are therefore not covered by the FSCS. As London Capital & Finance have shown, if the company defaults then an investor has no eligibility to the compensation scheme.
Whilst it is incredibly tempting to see headline rates of returns as a primary driver, Oakworth believe that there are more factors to consider when it comes to investments. Risk, timescales, your financial situation and the financial protection of your capital (through regulated investments) are all primary considerations. If returns seem too good to be true, some of the above will be overlooked.
Oakworth provide advice to clients all over Yorkshire and would be happy to discuss any queries you have regarding investments.