Astute Capital

Northernsole

I invested money in an ISA with a UK, London, based Investment Company for a three year period, April 2019 to April 2022. However, just days before maturity in April 2022, I was advised by the Investment Company that they were changing their business model and wouldn’t be paying out ISAs on maturity. I demanded my money back, but the Investment Company cited that they were changing their business model to lending money and had over 75% support to do so. They have suggested that I will get shares when their company is floated on the Stock Exchange on April 2023. In the meantime, this company are still operating in UK and offering loans up to 100,000.

Any ideas how I should approach getting my investment back.

kaMelo

I'm assuming this company;
https://www.bondreview.co.uk/2021/05/18/astute-capital-hit-by-fca-warning-still-being-promoted-on-facebook/

Albermarle

According to that link, they were offering a 'fixed rate ISA paying 8.9%' when savings interest rates were about 1.5%.

Sounds very similar to other mini bond frauds. At least the company still seems to be trading somehow, so maybe a chance of getting something back.

dunstonh

Any ideas how I should approach getting my investment back.

First thing is to write off the amount as being lost in your overall planning.    If you do get something back in the end it will be between £0 and tiny.  Unfortunately, you put your money in an unregulated extremely high-risk scheme with a 100% loss of capital potential.   If the company fails, your money will almost certainly go with it.  

As you did not use a regulated advice company and it's not a regulated product, there is no consumer protection. 

Northernsole

Yes, you're correct. It is Astute Capital and they received a FCA warning, but it was lifted earlier this year. Just doesn't seem right that they are still allowed to trade when money is owed to their clients. 

wmb194

Northernsole said:

Yes, you're correct. It is Astute Capital and they received a FCA warning, but it was lifted earlier this year. Just doesn't seem right that they are still allowed to trade when money is owed to their clients. 

If there's been a debt to equity swap then money isn't owed.

Anyway, it doesn't really look like a healthy company.

Link to its filings at Companies House:

https://find-and-update.company-information.service.gov.uk/company/10407229/filing-history

kaMelo

Might look unhealthy but it didn't stop a healthy pay-out to those involved.

jimjames

Albermarle said:

According to that link, they were offering a 'fixed rate ISA paying 8.9%' when savings interest rates were about 1.5%.

Unfortunately the ISA that they sold wasn't what most people would understand as either an ISA or fixed rate and falls into the same misleading marketing as LCF minibonds etc as you've highlighted. The rate is only fixed to the extent that they carry on paying, if they go bust then there is no other way to get your money back or interest paid. 8.9% x3 years is a pretty good deal for them if they were only paying back the capital as it means the other 70% of the money was available to use elsewhere. 
The ISA bit was not a cash ISA but an Innovative finance ISA which means that there is no guarantee on the capital and all the money could be lost without recourse to FSCS.

jimjames

kaMelo said:

Might look unhealthy but it didn't stop a healthy pay-out to those involved.

A cynic might suggest that's where the other 70% of the money went after paying out 8.9% of the capital for 3 years. Strangely there is no active company of that name (Jellicoe Ltd) either?

The other company appears to be Astute Capital Advisers Ltd referred in the snippet above as ACA.

https://find-and-update.company-information.service.gov.uk/company/10671489

Northernsole

Thanks for the information and you would think there must be some law these guys are breaking. Incidentally, the ISA I had with Astute was invested via Hilbert Investments and dividends I received were from Hilbert - who appear to be FCA registered. 

Malthusian

Thanks for the information and you would think there must be some law these guys are breaking.

There's no law against ultra high risk investment schemes. Nor against them going bust and losing investors' money. Nor against paying the directors a salary before going bust. 

There are restrictions on how they can be promoted, which are full of holes in the UK. Astute Capital seems to have managed to stay on the right side of them (which isn't difficult).