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

bbelsa

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?

Albermarle

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

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.

Eyeful

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

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 

wmb194

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 

Sounds like a corporate bond scam. Tesco has an outstanding 2023 5% bond but you cannot buy it at par, it's trading today at 109p, so the yield to maturity is far lower. You shouldn't talk to these people. They won't buy the bond, they'll steal your money. (If you really wanted it you can probably find a reputable stockbroker to buy it on your behalf anyway.)
https://www.londonstockexchange.com/stock/32UM/tesco-plc/company-page
How did you come across them? You may find yourself on a 'suckers' list so be prepared for more calls.

dunstonh

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?

you are being scammed.  

Tesco do have a corporate bond that expires in 2 years time with a 5% yield.    It was issued in March 2006.   That was the only time you could buy it and get the 5% yield.    it is not a savings product and it is not even a retail investment product.  It is a 100% loss potential corporate bond.

However, none of that matters as you wouldn't be buying it.  The scammers are using it to fake a product that does not exist and will run off with your money.   It is an extremely common scam.     The other part of the scam is to clone a genuine regulated company that is listed on the FCA register.   The genuine company is an innocent victim in this as they have absolutely nothing to do with the scam.   

There are two companies called Verge on the FCA register.  

Search Results (fca.org.uk)

One is from a previous scammer which has used two trading names:

Verge Finance Services Limited

Verge Finance UK Limited

The FCA list them as a warning.

The other is Verge Capital Limited.  That company is genuine but it holds no permissions to sell "retail" investments in the UK.  Its business has nothing to do with retail investments to consumers.   However, they are being cloned.   Verge Capital Ltd was set up at companies house on 25th Feb 2021.   Just 12 days ago.   The director is Nigerian and has no link with the real Verge Capital.  The shareholdings show no link with the real Verge Capital.    This is the website of the fake clone company:  Verge Capital Limited   

Looking at that website, it makes claims to a financial planning/wealth management firm. yet it holds none of the regulatory permissions required to carry out that activity.  Plus, individuals in that area are required to be listed by name.   It has none. And company directors are required to hold FCA control functions.  The director of the scam company is not listed. 

I repeat, this is the clone.  Not the genuine company they are pretending to be.

You really need to improve your understanding of the FCA register and apply some common sense. 5% is just not achievable at this time.  If its not on the MSE list of fixed term deposits then it probably doesn't exist.

jimjames

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

Eyeful

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.