Isa advise please

Kadjar

Hi there Guy's new to this forum
I have been approached by a company called ASTUTE
They are offering me a Capital Individual Savings Account..(ISA)
They are offering me Fixed return 7.5% per annum for 3 year term..
Question is, is this a proper deal / Company or is it just a Scam can someone else
verify please either way thank you.....:undecided:undecided

Vortigern

Legitimate financial companies do not cold call.

7.5% implies a very risky investment.

I wouldn't touch this with a very long barge pole

Drp8713

Kadjar wrote: »

I have been approached

Scam......

dunstonh

1 - (as mentioned) genuine regulated investment companies do not cold call
2 - its a 100% loss potential, very high risk unregulated investment.
3 - There is no FSCS protection.

This is not retail financial product. It is not meant to be marketed to retail customers.

Its not a scam. However, the fact you have been approached suggests there is some form of dodgy marketing going on.

ColdIron

These people?

http://www.theastuteisa.co.uk/

You do know that this is not a cash ISA but an investment product with the potential for 100% loss of your money?

• The Bonds are not protected by the Financial Services Commission (sic) Scheme (the 'FSCS' or any other government savings or deposit protection scheme. The FSCS will not pay compensation to an investor in the Bonds upon the failure of the Issuer. If the Issuer goes out of business or becomes insolvent, Bondholders may loss (sic) all or part of their investment in the Bonds.

Flobberchops

Doesn't fill me with confidence.

Kadjar

Hi there Guy's many many thanks for your thoughts knew it was to good to be true

just wanted second opinions many thanks again Cheers

prop

Hiya I saw an Advert on Facebook about Astute and made an enquiry, The guy contacted me to day and after ear bashing me for 1/2 and hour sent me the following emial.


He said on the phone that the fund is 100% asset backed and thats repeated in the email, what do you reccon that means?



It was a pleasure to speak with you today and thank you for your enquiry and interest in Fixed Return ISA's. Based upon what you explained, I have attached the Astute PLC company brochure to this email.

Here are some key points:

• Fixed Interest rate 7.5% - 8.24% pa.
• Funds are invested for 3 years.
• Option to be paid every 6 months
• The Bond is listed on the Irish Stock Exchange.
• Exit Early if you wish and sell before the end of the term.
• 100% Asset backed.
• Independent FCA Regulated ISA Manager and Trustee.
• Transfer unlimited amounts from existing ISA’s you hold.
• Invest up to £20,000 cash Tax Free every Year.

Useful links to assist in your due diligence:

• MSE forum would not ley me copy the links in this message
  

Frequently Asked Questions FAQs

What is an ISA?
An ISA stands for "Individual Savings Account" and is approved by the UK government to allow UK taxpayers to earn tax-free interest on their savings. ISAs have an annual allowance for contributions starting 6th April each year and ends 5th April the following year. The annual allowance for contributions into the current year's ISA is £20,000 for adult ISAs and £4260 for junior ISAs. The two most popular ISAs are Cash ISA and Stocks & Shares ISA. The average Cash ISA offers savers approximately 0.5% whilst Stocks & Shares ISA allow customers to invest into listed securities on a HM Revenue & Customs recognised stock exchange and achieve higher tax-free returns.


Which ISA is The Astute ISA?
The Astute ISA can be either an adult or junior ISA and is classed as an investment ISA as Astute Capital bonds are listed on a HM Revenue & Customs approved stock exchange.



What am I investing in?
Astute Capital is a UK PLC specialising in asset backed lending for the UK property and SME lending markets. They have publicly listed a £500million secure bond program to allow them to raise capital and provide funding to a booming lending market. Their listed bonds give UK savers direct access to this market and benefit from the competitive interest rates.



How is my money protected?
The Astute Capital bond structure has been approved by the Central Bank of Ireland under EU regulatory directives. All funds are held by FCA regulated custodians and security over assets are held by an FCA regulated security trustee solely on behalf of Astute Capital bondholders. All loans are subjected to stringent lending criteria, an independent credit committee and institutional grade UK solicitors and chartered surveyors.



Can I transfer my ISA?
Yes. Customers are able to start new ISAs or transfer their existing ISAs to the HMRC approved ISA manager, Reyker Securities Plc.

Who are Reyker Securities Plc?
Reyker Securities Plc act as the ISA manager to create and hold ISAs for retail customers and have been fully approved by HMRC to do so and are authorised and regulated by the Financial Conduct Authority. Reyker Securities Plc have over £1billion under administration and are a member of the London Stock Exchange and Euroclear.



Why is a listed bond better than a non-listed bond?
Listed bonds are a fully recognised financial security, issued with an International Securities Identification Number (ISIN) and can be traded on the financial markets which is naturally subject to the availability of second market buyers.
Non-listed bonds are essentially IOUs from private companies, not recognised on the financial markets and not issued with an ISIN. They cannot be traded on any financial market under any circumstance and are not subject to the same regulatory checks as listed securities.



Are the bonds eligible for SIPP and ISA?
Yes, these bonds are recognised by the FCA as standard assets and therefore can be purchased in your ISA or subject to your pension providers’ approval, into your SIPP.



Can I invest directly without the use of ISA or pension?
Yes, Astute Capital bonds can be purchased by any individual or corporate client through any financial intermediary that holds the permissions to execute trades on behalf of clients.



Why have they listed on the Irish Stock Exchange?
The Irish Stock Exchange (ISE) ranked No.1 for bond and investment funds listings worldwide and has over 36,700 securities listed on it. It will be the closest and most reputable stock exchange in Europe following Brexit and we believe this will play a pivotal role following the UK's exit from the EU and the effects this will have on the London Stock Exchange.



Is Astute Capital FCA regulated?
No, due to the fact they do not provide financial advice or services. Astute Capital is an issuer of listed bonds on a European stock exchange and this does not require FCA regulation.



What happens if Astute Capital go into administration?
All security is held by NCM funder services who are a fully FCA regulated security trustee with over £3billion under administration. In the event of default or should Astute Capital fail its obligations in any way it has to its bondholders, NCM have the authority to liquidate the assets it holds security over and repay bondholders before any other creditors. The Astute Capital listed bond structure has been structured and approved by the Irish Stock Exchange and provides transparency and security to retail investors.


Are there any fees?
Yes, Reyker Securities will charge 0.35% or £50 annually however, we have secured a deal for our customers that they will not be charged anything to open an account with Reyker. Astute Capital do not charge any fees to its bondholders.

Alexland

prop wrote: »

He said on the phone that the fund is 100% asset backed and thats repeated in the email, what do you reccon that means?

We have seen similar 'asset backed' bonds where people are now looking at 100% loss.

Ultra high risk intended for sophisticated investors who themselves wouldn't touch with barge pole.

Alex

dunstonh

He said on the phone that the fund is 100% asset backed and thats repeated in the email, what do you reccon that means?

It is a scammers way of making something sound safer than it is.

Hiya I saw an Advert on Facebook about Astute and made an enquiry

Facebook are notorious for accepting dodgy advertising. A week doesnt go by without someone mentioning a scam/dodgy advert in the money section.

poppy10_2

Seems well dodgy - avoid