We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Are fixed rate bonds covered by FCA now due to bexit?

Options
Are fixed rate bonds covered by the FCA now that brexit has occurred? Some companies that are not based in the UK but are in the EU state on the FCA register they only have temporary permissions? What does this mean and how will this effect the cover long term?
Also have been given investment bond advice from a company that doesnt have FCA cover but states they use another company that they partner with that has cover? is this correct?

Comments

  • Albermarle
    Albermarle Posts: 27,754 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Presumably you are talking about fixed rate savings accounts, often fixed for a set period.
    In this case forget about FCA permissions, EU or otherwise . Just stick to known providers who have the full £85K Fscs cover .
    Use a reputable comparison site , such as this one https://moneyfacts.co.uk/ and do not send any money to anyone not featuring on these sites .
    Also have been given investment bond advice from a company that doesnt have FCA cover but states they use another company that they partner with that has cover? is this correct?
    Sounds very dodgy . Stop contact and run the other way - fast .

  • dunstonh
    dunstonh Posts: 119,617 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are fixed rate bonds covered by the FCA now that brexit has occurred?

    What do you mean by fixed rate bonds.   Bond is a term that is often misused and can mean different things to different people.

    Fixed term deposits - always covered by the FSCS

    Loan notes/corporate bonds - never covered by the FSCS.

    Also have been given investment bond advice from a company that doesnt have FCA cover but states they use another company that they partner with that has cover?

    Investment bonds are a taxwrapper.  Either onshore bonds or offshore bonds.   These are normally only put in place by regulated financial advisers.   

    So, there are a couple of concerns with what you have said.

    1 - Are you referring to the high scam area of loan notes/corporate bonds?

    2 - You say the investment bond advice is coming from a company that does not have FCA "cover" - I take that to mean they are not regulated by the FCA.   That is a big no no.   It is unlawful to provide investment advice of retail financial products (of which an investment bond is) without FCA authorisation.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Eyeful
    Eyeful Posts: 937 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    edited 8 March 2021 at 3:59PM
    Hope this is of help to you. Just type in who you are thinking of:-
    https://www.fscs.org.uk/check-your-money-is-protected/"

    Low risk bonds are "regulated" these come from, NS&I, Banks, Buildings Societies. If they are on the FCA Financial Services Register, your money is covered  by the FSCS up to £85k

    High risk bonds  are from anywhere else they are "unregulated", they are classified as investments, with the potential of  losing all your money! 

  • bbelsa
    bbelsa Posts: 3 Newbie
    Part of the Furniture First Post Combo Breaker
    have looked on FCA register and it seems verge is listed there and have offered 5% return with tesco bond for 2 years fixed period is this classed as a low risk bond?
    have disregarded goldcrest as are not on fca list thanks for the advice 
  • jimjames
    jimjames Posts: 18,635 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    bbelsa said:
    have looked on FCA register and it seems verge is listed there and have offered 5% return with tesco bond for 2 years fixed period is this classed as a low risk bond?
    have disregarded goldcrest as are not on fca list thanks for the advice 
    I can guarantee that will not be what you are buying. Stop any contact with them, you are being scammed
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Eyeful
    Eyeful Posts: 937 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    edited 8 March 2021 at 10:30PM
    Tesco bond is "unregulated" as it is not from NS&I, Bank or Building Society. So it is classed as an investment which has the potential of you loosing all your money. The bond may be real, but the person selling it may not be honest. Only deal with those on the FCA Financial Services Register, not a go between.

    Basic safety rule of thumb
    1. Look at  Best Low risk fixed 5 year interest = 1.4%
    https://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

    2. Yield on FTSE 100 = 3%
    I think high risk investment = 1.5 x FTSE yield = 4.5%

    3. Use these to help you check scams out:-
    https://www.fca.org.uk/consumers/unauthorised-firms-individuals
    https://www.scamdoc.com/

    If someone today is suggesting you will get 5% , I suggest it would be wise to leave it alone.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.