APJ Solicitors, a financial mis-selling specialist legal firm, is offering its expert skills to help those affected by the collapse of the many mini-bond investment schemes, following the Basset & Gold collapse.
The company says its expertise in relation to mini-bond schemes suggests that many more similar companies will collapse in the near future, leaving people at a significant financial loss during the country's most vulnerable economic time.
The UK's FCA has limited powers over the, usually unauthorised, issuers of mini-bonds. These unregulated mini-bond schemes do not automatically qualify for protection from the Financial Services Compensation Scheme (FSCS) and therefore come with increased risk and should not be an investment choice for those with little investment knowledge.
The UK's FCA has limited powers over the, usually unauthorised, issuers of mini-bonds. These unregulated mini-bond schemes do not automatically qualify for protection from the Financial Services Compensation Scheme (FSCS)."
They are generally unsecured, non-convertible, untradable and carry a risk so a return on investment is not guaranteed.
The issuers of these mini -bonds often utilise the services of other companies who are regulated to market, promote and facilitate applications from prospective bondholders.
Where the firm or company approves or communicates a financial promotion, or directly advises on, or sells these products, then depending on the legal circumstances the company may have breached the FCA rules and principles which may entitle an investor to compensation.
"This requires a detailed analysis of the legal and factual circumstances, collecting evidence to understand whether the investor is eligible for compensation. APJ are specialists in this field and best placed to assist and represent investors where this type of investment bond has failed. We have a dedicated team who will thoroughly investigate and gather the necessary evidence to demonstrate the bond was mis-sold and recover the compensation the investor deserves," said Glyn Taylor, professional support lawyer at APJ Solicitors.
Between 2015 and 2020, Basset & Gold, regulated by the FCA between 2016 and 2018, raised as much as £36m from 1,800 investors. However, whilst Basset & Gold were regulated the mini-bonds it issued throughout its five-year lifespan were not. Through a linked company, B&G Finance Ltd, they were able to provide unsolicited and negligent advice to "help clients find a safe home for their savings."
The FSCS determined that, due to the mis-selling of these mini-bonds, many Basset & Gold bondholders who bought their mini-bonds through B&G Finance Ltd may be able to claim compensation up to the £85,000 limit.
In order for a customer to claim compensation in these cases, they must be able to prove they were mis-sold their bonds through mis-leading information or advice from a regulated company associated with Basset Gold PLC. In January, London Capital, was the first mini bond company to collapse leaving 11,400 investors likely to lose more than £230m in savings. On 23 April another mini-bond scheme company, Blackmore went into administration owing investors up to £45 million.
Taylor added: "The APJ team have worked within financial law for over 40 years and were able to notice that many of the mini-bond schemes were being issued recklessly and negligently. We are offering expert advice to anyone who may believe they were ill-informed on their investments because we believe they may be eligible to some or all of their investment via the FSCS, should we establish liability and prove mis-selling was involved.
Following the news of yet another collapse, this time from the Blackmore company, APJ Solicitors expect many more to follow suit in the upcoming months and urge anyone with an investment in a mini-bond to seek our expert advice."