8% ISA with London Capital and Finance PLC

25_Years_On wrote: »

This looks weird. It looks like an Express news article but it is "sponsored".


https://www.express.co.uk/sponsoredfeatures/finance/personalfinance/1048458/Are-these-fixed-rate-bonds-paying-9-9-a-year-too-good-to-be-true

What's so weird about it? It tells you who sponsored it at the end. BLACKMORE. Don't touch it with a barge pole.

The word i suggest is "misleading"

jimjames wrote: »

Indeed. On the one hand it says "capital at risk" and on the other that the bond is backed by insurance that will pay out in the event of failure.

If there is any shortfall, theCapital Protection Scheme backed by a private insurance company will protect the bondholder for the full amount of the original investment.

Note the key word WILL protect full amount. Read the small print however and you'll see this.

"The Capital Protection Scheme is underwritten by NLS. In the event that NLS became insolvent, the Capital Protection Scheme would be of no effect "

That doesn't sound like a definite WILL protect, more like a might or maybe.

If it really had robust insurance against a loss in capital, the costs of the policy would push the interest rate on the bond down to more or less the risk-free rate. You can't get 9.9% on an investment that doesn't bear substantial risk.

For more about Blackmore, see this list of articles they don't want you to read.

Dubious unregulated investments promoted in the mainstream media? Not really surprising, unfortunately. They get a load of money, they promote some dubious unregulated outfit, if it goes tits up they say it's not our fault, we're just a newspaper, responsibility for the adverts stays with the advertiser.

Malthusian wrote: »

For more about Blackmore, see this list of articles they don't want you to read.

Dubious unregulated investments promoted in the mainstream media? Not really surprising, unfortunately. They get a load of money, they promote some dubious unregulated outfit, if it goes tits up they say it's not our fault, we're just a newspaper, responsibility for the adverts stays with the advertiser.

Scary stuff! It looks like there is a lot of history to Blackmore Bonds and the people involved have been investigated for Pension liberation scams by SFO in the past.