Bonds Protection Regulation and Fraud?

Dave_c_v

Hi - When my parents retired some 25 years ago (they are now 80+) they were advised by their advisor at the time to invest in Overseas fixed rate bonds. The company was in the Isle of Man and registered with the IOM FSA. When their bonds have reached their term they have taken the interest and signed the back of the bond to have it run for another five years. The cheques have always come from Jersey. My parents contacted the children when the latest interest payment was late. We have invistigated and found the original Isle of Man company had gone into liquidation and the administration of the bonds had passed though two UK finantial advisors (they are not registered with UK FSA) When the bonds have been rolled over the administrators have continued to use the Isle of Man company name. The Bonds are suposed to be based on Property. Documentation is a bit thin with only these bonds available embosed with a Jersey stamp.
So can ANYBODY issue bonds and continue to administer them? It all looks very suspicious. How do we track down where the capital is? Would we have any comeback on these Finantial advisors if they were doing A Bernard Madoff and paying the interest out of the captial and keeping the rest?
Regards Dave