Are Bonds safe?

UncleRemus

I am wanting to move my savings out of Mt current ISA, as the rates are rubbish. A company called Sjcf Investments are offering a fixed rate bond @3.2 % for a fixed 1 year term. They say it is fully FSCS protected. I am from old school that thinks, if it sounds too good to be true, then it probably is! Has anyone had any dealings with this company, and how best to check them out, and that they are FSCS protected? Thank you. 

ColdIron

3.2% is an wholly unrealistic rate for a cash product. This is likely an at risk investment product (clue's in the name) which often do not have FSCS protection. Look elsewhere

Where did you see this? A Google or Facebook Ad?

dunstonh

Are Bonds safe?

The word "bond" is the most misused going.  It covers tax wrappers, low risk investments, high risk investments and unregulated investments and plenty of scams use the term bond too.   Fixed term deposits have also been using the term bond in their marketing.

A company called Sjcf Investments 

There is no company called that on the FCA register.

So looking a bit deeper, there is a company registered at companies house under 09701588 called Sjcf Investment Ltd.  A slightly different name to what you say.  However, the FCA register does not recognise that number either.

What this tells us is that company is not allowed to retail regulated financial service products or services in the UK.

 offering a fixed rate bond @3.2 % for a fixed 1 year term. 

I can find no information that indicates a fixed term deposit, loan note/corporate bond exists.   Can you let us know where you saw this?

and how best to check them out, and that they are FSCS protected?

It is actually quite simple.  If its a retail deposit from a bank then it will be FSCS protected.   If it is an unregulated investment then it will not have FSCS protection unless it is advised by a regulated financial adviser and considered unsuitable if it fails.

Pending further information, I would be on guard.  It sounds suspicious.  Potentially a cloning scam.  This is where there is a genuine firm in existence but a rogue firm is set up by scammers with a very similar name to fool people into thinking they are dealing with a proper firm.   There is a spelling difference in this case. So, that could point towards that.

Let us know where you saw information about them and this "bond" and we can dig deeper.

tacpot12

Have a look on Companies House; the company has just two directors, made a £7.5m loss last year on investments of £58m. If you want to invest in bonds, buy a good collective bond investment from a recognised expert.
I've been happy with my purchase of the Schroder Long Dated Corporate Bond Accumulation Fund, which as returned 17% in two years, so there is no need to take a risk on an unknown. 

darthknightrider

I found this page while searching Google for “sjcf investments”. I received a call from them and requested a follow up email. Based on the email alone I believe it’s a scam.

The domain from their email is sjcf-investments.co.uk (plural) which was only registered in June 2020 (check WHOIS on sjcf-investments.co.uk). They also link to a fake FCA website domain in the footer of the email which was registered in July 2020 (check WHOIS for register-fca-orguk-shpo-firmdetailspage-001c00n1lsuaae DOT ORG).

It’s likely that the scammers are using a legitimate company’s accounts and lack of web presence to try and scam money from people. Avoid at all costs!

MDMD

They couldn’t even be bothered to make up two different “testimonials” for two different “Customers” at opposite ends of the country....

Their London address is also just a Regus virtual address: https://www.regus.com/en-gb/united-kingdom/london/westminster/17-hanover-square-3768

UncleRemus

Thank you all, I have since been in contact with FCA, they are saying more than likely a cloning company, and definately a scam, and not protected by the FSCS. They are asking me to give them all the details I have, for then to delve deeper, which I am more than happy to do! I can't believe these truly nasty people, and how cool and collected they are, saying it's all as safe as houses, etc. What a total scam! 

masonic

Don't expect much from the FCA, other than perhaps a warning on the register to let people know the company is being cloned. At least you had the sense to smell a rat, many don't.