Fluid ISA and Halcyon Developments?

GotNowt

Two investment opportunities have come to light that look good:
- Fluid ISA offering 6% pa (Northern Provident Ltd)
- Halcyon Developments offering 7-8% pa
Do these present unreasonable risk?
I believe they are effectively loans to fund property developments, the second ending up owing part of the Halcyon Retreat holiday development in France.
Probably not FSCS protected, but to what degree is that significant?
Alternatively, you can lose all your money in S&S, and that’s regulated. Sorry for my ignorance.

eskbanker

GotNowt wrote: »

Probably not FSCS protected

The fact that your investigation hasn't even got as far as checking something that's readily answered within a few seconds says everything about your attitude to risk.

Could I interest you in some magic beans perhaps?

GotNowt

Ha. Thank you eskbanker. You infer I’ve a poor attitude to risk but I wouldn’t have posted the question if I was clear or had doubts about the risk. You’re obviously experienced in making assessments in seconds, while I am not; hence the question.
On another forum, people are praising the Fluid ISA and rushing to sign up but I thought I’d check on MSE, hoping for sincerity and not cynicism.
I’m unable to post web links here but did note the Fluid ISA was proposed by Northern Provident Ltd whom are licensed by the FCA to provide financial products and services.

wjr4

What other forum are they praising it on?!

OldMusicGuy

Good thing you checked here. Just going to the Fluid ISA website reveals this banner:

"Your Capital is at Risk, investment is not covered by the Financial Services Compensation Scheme (FSCS), the investment may be difficult to transfer and your investment can go down as well as up."

No "probably" about it! Have you not even bothered looking at their website?

Unless you are prepared to risk losing all your money with no chance of compensation, stay away.

eskbanker

GotNowt wrote: »

I’m unable to post web links here

OK, let me help....

Prominently at the top of https://fluidisa.com/:

Your Capital is at Risk, investment is not covered by the Financial Services Compensation Scheme (FSCS), the investment may be difficult to transfer and your investment can go down as well as up.
You must read our risk page in full before proceeding - click here.

and at the foot of the page:

Your Capital is at Risk, investment is not covered by the Financial Services Compensation Scheme (FSCS) and interest payments are not guaranteed. In the event of a loan default or if Fluid becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment you are strongly recommended to consult a trained professional advisor. Before you subscribe to the bond you should ensure that you fully understand the risks and determine whether the bond is suitable for you on the basis of all the information available, including the Information Memorandum.

The fact that the bond is asset-backed would not guarantee that all capital would be repaid. This also means that there is a liquidity risk and there is likely to be a delay in repaying your capital should you request it.

Despite any past experience or results past performance is not a reliable indicator of future performance.

ColdIron

An illiquid investment with no FSCS protection and the possibility of 100% loss of capital, what could possibly go wrong?

GotNowt wrote: »

On another forum, people are praising the Fluid ISA and rushing to sign up but I thought I’d check on MSE

I am confident that will not be an MSE forum

Malthusian

GotNowt wrote: »

On another forum, people are praising the Fluid ISA and rushing to sign up but I thought I’d check on MSE, hoping for sincerity and not cynicism.

This kind of investment involves very little sincerity and inspires much cynicism.

I’m unable to post web links here but did note the Fluid ISA was proposed by Northern Provident Ltd whom are licensed by the FCA to provide financial products and services.

Northern Provident Investments also signed off Blackmore Bond's materials, along with a load of other recently launched IFISAs.

Which forum is singing their praises?

Linton

Halcyons latest accounts show negative equity to the tune of £270K. It is classified as a micro company with less than 10 employees or a turnover of less than £2M

For what happened in 2016 to another company with matching directors, see:here

Reaper

GotNowt wrote: »

Two investment opportunities have come to light that look good:
- Fluid ISA offering 6% pa (Northern Provident Ltd)
- Halcyon Developments offering 7-8% pa

Last year Halcyon Developments were offering 18+%! Maybe they thought that sounded too good to be true.
https://bondreview.co.uk/2018/02/14/halcyon-developments-unregulated-loan-notes-paying-18-for-one-year/

HappyHarry

GotNowt wrote: »

Ha.
On another forum, people are praising the Fluid ISA and rushing to sign up .

Given that;

(i) the Fluid companies have only been incorporated since June 2018 - companies house,
(ii) The Fluid companies have already amended their accounting period without publishing any accounts at all - companies house
(iii) The Fluid Bond company has a floating charge over all their assets registered by another company (More Group Capital Services Limited) which would take priority over any assets to be repaid to clients in the event of default - companies house
(iv) More Group Capital Services Limited have no equity themselves according to their latest accounts - companies house
(v) The investment is not regulated - fca
(vi) The clients will have no protection provided by the FSCS - fluid website

This looks like a huge gamble with your capital.

The opportunity to you is a 6% gain.

The risk to you is a 100% loss.

There is no indication anywhere what the chances of success are, because there is no history and there are no published accounts.

You'll have to decide yourself if it is a good deal.