Investment In Litigation Funding ?
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Some people seem to be assuming that this is a guaranteed 50% return. They claim nothing like that.
(I was also offered this investment, and haven't fully verified that it is genuine.)
The acknowledged risks are:
1. Losing the case and getting only your capital returned.
2. The case is lost and the insurance company (Box Legal, providing After The Event insurance) is insolvent. Then Allanson's should receive 90% of the value from the FSCS.
Other risks I can think of are:
3. That the scheme could be a fraud.
4. The case could take longer than expected (maybe due to delaying tactics by the lender), with NO guaranteed maximum duration.
5. The case is lost and the insurance claim is *validly* denied. (i.e. It is not covered by the insurance). Read the insurance contract. It's a small risk. Your contract with Allanson's does NOT make them liable to you in this case. (You could lose your capital.)
I (personally) find 1, 2, 4 and 5 acceptable risks for a medium risk investment grade product. (Maybe comparable to an asset-backed corporate bond in terms of risk to capital.)
This type of investment doesn't seem to be regulated by the FCA (Financial Conduct Authority), and so they don't have to provide a document that identifies the risks.
The projected returns of about 37.5% (estimated 75% chance of an estimated 50% in an estimated 6 to 18 months; They never said it was guaranteed.) are surprisingly high, but the uncertainty of getting a return (and maybe a high degree of uncertainty around that estimated 75% chance of winning), and the risks above, might explain that. The estimate might be optimistic. (I've no way of estimating that.)
If it's genuine, we'll probably see the same product offering lower returns in future, when it has a track record and a better basis for estimating returns.
The SRA (Solicitors Regulation Authority) website shows that Allanson's LLP are in fact solicitors regulated by them (and that the website given is theirs. It uses SSL.) (Other references to it on the web make it look genuine too.)
But before transferring any funds, you have to ensure that the account belongs to them or that the person providing the account details is in fact from Allanson's (a sender's email address is easily forged, but you could send them an email (requiring a response that shows that they received it) or (more secure) otherwise contact them, WITH CONTACT DETAILS ON THE WEBSITE).
When you verify that, you know that you are dealing with a regulated solicitor. That's where it's credibility comes from.
The FCA's register does list Box Legal.
(Leeward are not listed because they are outside the UK.)
Delta Market are only a middleman, and that's all they claim to be.0 -
Oh dear!
This message is too short, as is life.0 -
Well you can guarantee that the lawyers will always get paid anyway.0
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Some people seem to be assuming that this is a guaranteed 50% return. They claim nothing like that.
(I was also offered this investment, and haven't fully verified that it is genuine.)
You forgot to say "Don't touch them with a bargepole".
Yes, I think that's what you meant to say. As a new poster, I'm sure you are not actually suggesting anyone invests with them or that it's ok to invest with them.The SRA (Solicitors Regulation Authority) website shows that Allanson's LLP are in fact solicitors regulated by them (and that the website given is theirs. It uses SSL.) (Other references to it on the web make it look genuine too.)
LOL gimme a break! Half the Internet uses valid SSL certificates. You can get yours for.... for example... 24 quid a year with 1&1.
Anyone can make a website too. It's no longer an indicator of authenticity and validity.
Edit: MSE is REALLY bad, they don't use SSL. C'mon guys, "shibboleet", Hi 3rd level tech support, please enable SSL on your http daemon. Thanks!Goals
Save £12k in 2017 #016 (£4212.06 / £10k) (42.12%)
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Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)0 -
Some people seem to be assuming that this is a guaranteed 50% return. They claim nothing like that.
They claim the opportunity is "for eligible savers and investors alike who are simply seeking to gain better returns than what the banks are currently offering" and "If you are frustrated with the low returns offered by banks but don’t want to risk your hard-earned savings by investing in volatile stocks and shares" [my emphasis]. The last part explicitly says there is no risk, i.e. it is guaranteed, and the whole thing states that the investment should be compared to guaranteed deposit accounts, and by investors who lack enough appetite for risk to invest in mainstream diversified stockmarket investments.
When an ultra-high-risk investment is being promoted as if it is suitable for investors looking for deposit accounts the distinction between the capital being guaranteed and the yield being guaranteed becomes semantics.
Box Legal is not authorised by the FCA to "effect" or "carry out contracts of insurance". If it is effecting an insurance contract without authorisation then it is committing a criminal offence, and there will be no FSCS cover if it fails to meet its obligations under that contract.2. The case is lost and the insurance company (Box Legal, providing After The Event insurance) is insolvent. Then Allanson's should receive 90% of the value from the FSCS.
More generally, any torturous attempt to give the appearance of FSCS cover for an investment claiming a yield of up to 50% will fail.
This is an ultra-high-risk unregulated investment which could lose 100% of your money. It is not medium risk. An individual asset-backed corporate bond would also be ultra-high-risk, even in a more well-known company. A fund holding dozens of corporate bonds which diversified the default risk might be medium risk.I (personally) find 1, 2, 4 and 5 acceptable risks for a medium risk investment grade product. (Maybe comparable to an asset-backed corporate bond in terms of risk to capital.)0 -
John, good of you to sign up to this forum and as a first post resurrect this dead thread. It will give all the sensible and knowledgable forum regulars a second opportunity to say....run away....don't even think about this one.......there are a million better ways to invest your money. etc etc.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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I am new to investing and have had the exact same as 5MeoDmt but the company is called Growth Market.
The Growth Market
Parallel House
32 London Road
Guildford
GU1 2AB
T: 01483 331468
Exactly the same Solicitors are Allansons. Claims to be covered by FSCS etc.
£4000 per case which potential return of £6000
The person ensured me that if the case failed I would get my full £4000 back as it is covered there insurance policy.
How can people get away with advertising this on the Internet, I was ready to give them £4000 until I saw this forum.0 -
Have you spoken to Allansons to find out if they have any connection?Remember the saying: if it looks too good to be true it almost certainly is.0
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No I haven't. Will ring them tomorrow0
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Litigation funding can and has produced impressive returns for years, just ensure -
- The company you are dealing with is legit.
- The cases are within the English courts.
- The cases are backed by what is called ATE insurance. ATE insurance means your investment is 100% protected and you will receive the money back should the case be lost.
Compared to most other asset classes, litigation is still not mainstream which makes people suspicious but if the above 3 points are in place and you have background checked the case you could do very nicely indeed. I have heard of people doubling their investment in 12 months.0
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