Facebook ISA - Help please - My Spidey Sense is tingling

Stevey

Hi,

My partner has been approached with regard to an ISA reviewed on Facebook as offering returns of around 6.5% after charges.

I think I know the answer but would like some thoughts.

The company is called First choice ISAs

Website is: http://www.firstchoiceisas.co.uk/index.html

They are supposedly not offering financial advice, but the phone call I heard certainly sounded like a financial sales pitch for an ISA. They are not regulated by the FCA. I asked about FSCS, and was told something around the fund being backed by property and Fine Art Assets, so if it did go under, we'd be preferential creditors.

The email received from them points all over the place, including some company called Square Mile IFA based out of Czechoslovakia!

The guy on the phone is amenable, intelligent and very helpful, but I've never come across a finance professional who wants to talk every day, and is putting time limits now on their ISA - it's closing this week!

The email they sent us is as follows - any thoughts are welcome. Thanks folks.

It has been a pleasure speaking to you about the ISA options available via Mayfair Capital Limited ('Mayfair Capital'). Mayfair Capital are regulated by the FCA and also hold HMRC ISA Manager authorisation via their relationship with Jarvis Investment Management Limited. Now for the fantastic news....

Congratulations - as discussed you are indeed eligible to benefit from a new ISA offering a higher rate of return. If you remember, we conducted an Appropriateness Test with you over the phone to ensure you were eligible for certain ISAs as per the requirements of the Financial Conduct Authority (FCA). Performing the Appropriateness Test is part of the application process for you being able to benefit from a new ISA via Mayfair Capital. We performed the Appropriateness Test on behalf of Square Mile FS - a leading financial advisory firm with full details given below. About them.

ISA Information

As discussed, please read below for further information in connection with your proposed new ISA Manager and other key parties involved. I have also taken liberty to provide some basic information about the products.

Mayfair Capital

Mayfair Capital was founded in 2016, combining the 40 years of experience their team possesses, to provide a relationship-based advisory investment service to clients who want a reliable and personal approach to the management of their investments. Their approach is client focused: they aim to provide tailored and objective investment advice and investment management services to help their clients achieve their investment goals. They strive to provide clients with a high level of service that is built on trust and service that is framed around fairness. They use a range of portfolio models to help guide clients towards achieving their objectives based on their personal circumstances.

All clients of Mayfair Capital have 24/7 online access to their accounts should they so wish to check-in on their investments at any given time. Mayfair Capital are fully regulated by the Financial Conduct Authority (766642) and have professional relationships with many other esteemed business entities such as Jarvis Investment Management, Hartley SAS, Gaudi and Square Mile FS.

For more details please see https://www.mayfair-capital.co.uk

Square Mile IFA

Square Mile is a pan-European network of financial planning professionals, established in 2010, and look after in excess of £50 million of clients assets. Their consultants are based in offices across Europe and of course within the UK, enjoying a healthy relationship with the Financial Conduct Authority. All of their consultants proudly boast many years of experience within the industry working with leading financial institutions, and all hold UK financial planning qualifications, and with no upheld complaints to date.

They offer services across a vast range of financial products, including of course ISAs in this instance. For peace of mind, Square Mile is a member of the Federation of European Independent Financial Advisers (FEIFA) given they operate across the whole of Europe as mentioned previously. Their simple objective is to assist all of their clients achieve their specific and unique financial objectives. Square Mile do not charge any fees in relation to these ISAs. They can of course assist you with any further financial services requirements that you have or may have in the future.

For more details please see http://squaremilefs.com/

Allocation of your monies into a new ISA via Mayfair Capital Limited

Mayfair Capital have a range of products that are eligible for investment into via an ISA wrapper. Mayfair Capital have of course carried out extensive due diligence on these products before including them in their product offering, and the products they work with in relation to your ISA have all individually been listed on HMRC recognised stock exchanges for your further piece of mind. To reach your desired target of c. 7% returns per annum from your new ISA, your ISA will be invested into the following products in the specified percentages as explained on the phone. Brief details about each holding within your new ISA include:

Issuer Audley Funding PLC Omnia Bonds II PLC
ISIN: GB00BDZC8S5W GB00BFM7CV87
Coupon: 7.25% per annum 6.50% per annum
Coupon Frequency: Bi-annually Bi-annually
Listing Frankfurt Stock Exchange & Berlin Stock Exchange Frankfurt Stock Exchange
Allocation % 60% 40%
Fact Sheet Click here Click here
Website https://www.myclubgroup.com/ https://www.omniabondsii.com/eng/frontpage


As discussed, this provides you with a blended return of 6.94% per annum, before deductions of applicable fees such as the 0.5% annual management charge that Mayfair Capital Limited charges. This means your effective return per annum on your ISA would be 6.44% after the annual management charge is taken in to account.

Should you wish to receive further information about the above products please do not hesitate to contact us.

I trust all of the above information is easy to understand and achieves your desired goals in relation to your new ISA. Should you have any questions then please do not hesitate to contact your Client Account Manager at First Choice ISAs on 020 3800 1243 for further information.



Kind Regards,

First Choice ISAs Team

webjaved

After reading that, I don't feel comfortable one bit. I'd stay away from them.

dunstonh

their activity is certainly regulated by the FCA and they are in breach by not being regulated. Collective investment schemes and the marketing of them is a regulated activity.

You should report them to the FCA.

jimjames

First thing I noticed on that link:

This is a higher risk investment and your capital may be at risk.

I think even then they are downplaying the risks involved.

There are all sorts of unregulated bond ISAs doing the rounds on Facebook, it sounds like this one is related to the myclub ISA

https://damn-lies-and-statistics.blogspot.com/2019/01/my-club-isa-bond-review-safe-725-bonds.html

eskbanker

Stevey wrote: »

My Spidey Sense is tingling

I'm surprised that your senses aren't completely overpowered by the sensory overload of the deafening alarm bells, blinding red flags, and the overwhelming stench of bovine excrement from the sales guy....

londoninvestor

Omnia wrote:

SAFETY AND YIELD BASED ON ASSETS

The investments of OMNIA Private Equity AG are backed by fine art and classic car collections, which are the highest yielding alternative asset classes over the last decade. You can read more about our asset solutions on omniaas.com.

Use of proceeds is targeted towards private equity investments within buy-outs in the micro-cap segment, which currently is the highest yielding ordinary asset class according to Bain and Cambridge Associates.

Besides the annual coupon of up to 7.25%, investors in OMNIA Bonds II plc do not participate in either upside or downside of the investments done through OMNIA Private Equity AG, as they are fully secured by collateral of high value assets pledged to OMNIA Bonds II plc.

Don't worry about the dubious quality of the investment, we found some dubious collateral to back it for you!

Alexland

I am surprised to see mention of Jarvis Investment Management in this sales pitch. They are reputable so might be very disappointed to see their name used in these circumstances.

Blackbeard_of_Perranporth

It is about as safe as sandcastles on the low tide line!

jimjames

I'd suggest you report it to the FCA. Unless they get reports of this sorts of products they can't take action or at least can't use the excuse of not knowing about it

Alexland

jimjames wrote: »

I'd suggest you report it to the FCA. Unless they get reports of this sorts of products they can't take action or at least can't use the excuse of not knowing about it

Might also be worth someone making Jarvis aware just incase their products are being used to facilitate any of these transactions.

Alex

scam_victim

You welcome thoughts ..... here's mine ... Stay well clear.

I have very bitter experience of Square Mile. You can read all about my hard learned lesson. [ NB. I wanted to give a link to "my story" but this forum doesn't allow new users to add a link. It might allow this, but you have to copy and paste it: write.as/posts-index/index in your browser. ]

As for the FCA. I have been reporting these people to regulators both here and in the Czech Republic plus Action Fraud and it just gets ignored. No one gives a ....