Castle Trust. Saving Bond

rpip

The current offer includes 4.5% for a 5y bond & that this is FSCS protected to £50.000.
The above Telegraph article includes a response from FSCS that they would treat each case on it's merits. Clearly, they have decided not to pursue Capital Trust, which implies that they are (still) technically operating within the rules.


If the protection actually fails, the FSCS would have to answer to this. But would investors be actually paid out?

colsten

rpip wrote: »

But would investors be actually paid out?

I for one will not put it to the test.

Plenty of less risky investment opportunities.

dunstonh

The current offer includes 4.5% for a 5y bond & that this is FSCS protected to £50.000.

I dont buy it. The FSCS £50,000 protection is for investments (not deposits) and doesnt pay out in the case of failure of the underlying assets.

The above Telegraph article includes a response from FSCS that they would treat each case on it's merits. Clearly, they have decided not to pursue Capital Trust, which implies that they are (still) technically operating within the rules.

The credit crunch saw failures in a number of investments that required the FSCS to look at whether they covered them or not at that point. Prior to that, many were advertised as having FSCS protection but ultimately, when tested, the FSCS did not cover them (structured products being the main one). The credit crunch taught us a lot. It taught the FSCS a lot as they didnt know these things were not covered before. It is not for the FSCS to investigate until an FSCS claim is put in.

If the protection actually fails, the FSCS would have to answer to this. But would investors be actually paid out?

History says no. It is up to the promoting/retailing/advising firm to correctly disclose information.