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Mis-sold Mini-Bonds

Whenever you invest in financial products such as mini-bonds, you put your trust in the professionals providing you with advice. Unfortunately, there are occasions when advisers are less than honest with you about the risks associated with investments.

If you were lied to or misled over your mini-bonds, you might be able to claim compensation. But what is a mini-bond, and how do you know if you’re a victim of mis-selling?

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Mini-bonds Claims

Unfortunately, businesses offering this type of financial product in England and Wales are not authorised and regulated by the FCA. This means that you’ll not be entitled to anything should the company become insolvent.

This doesn’t mean that the way that your treatment was acceptable. You may still be able to make a claim if you were misled into investing in bonds you weren’t suited to or given mis-leading advice.

Our team of experts have experience helping numerous customers claim compensation where they’ve been the victims of mis-selling. If you think this applies to you, get in touch today and speak to one of our experts.

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What is a mini-bond?

A mini-bond is a form of investment that offers large returns. The level of risk is proportional to the size of the returns. Often, the risks involved in investing in a mini-bond are much greater than those of other forms of investment.

There’s no specific legal definition of what a mini-bond is; however, the term generally refers to debt securities marketed to retail investors.

It’s basically an IOU issued by firms to investors. This is given in exchange for a fixed interest rate over a set period of time. Once this period ends, the investor’s money should be repaid.

The amount that the investor gets back in return depends on how well the issuer’s business is run and how successful it is. If the business doesn’t succeed, the investor may only see a minimal return or get nothing back at all.

Some people who invest in mini-bonds do really well in terms of returns. However, it is important to point out that they are not suitable for risk-averse people. They are certainly not the type of investment you want to go blindly into.

A business isn’t necessarily required to be regulated by the Financial Conduct Authority (FCA) when providing mini-bonds. Because of this, there may be no protection under the Financial Services Compensation Scheme (FSCS).

If you’re considering investing your money in mini-bonds, you should always take your time and consider whether they are the right option for you.

Because there may be no protection under the Financial Services Compensation Scheme, it makes the risk associated with investing in mini-bonds far greater.

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Fill in the form below and one of our team will be in touch for a free, friendly, no-obligation chat to assess your situation.

We’ll go through your options, your rights to making a claim and discuss how we can move forward. And don’t worry, this a free assessment and we don’t take any up-front costs.

What is a mis-sold mini-bond?

Many people who have invested in a mini-bond scheme will have done so without all of the information required to make an educated decision on what is right for them.

Sometimes this is due to the negligence of the financial adviser that sold you the mini-bonds in the first place.

On other occasions, you may have been deliberately selling your mini-bonds based on false information.

Stories in the news about companies such as London Capital & Finance that intentionally lied to investors about the mini-bonds they were offering have been rife in recent years. If you’ve been affected by the selling of these mini-bonds, then you may have a claim.

There are multiple factors that will affect how an investment performs. All of which are out of the control of the investor.

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Have you been mis-sold a mini-bond?

Ask yourself the following questions. If the answer to any of these is ‘no’, then you may have a claim.

  • Were the risks involved clearly explained to you?
  • Did anyone go through the annual management charges associated with the investment with you?
  • Were you told exactly how the investment would work?
  • Did anyone make it clear that you may lose money overall by the end of the investment period?
  • Were you told exactly how much money you would stand to lose if the investment didn’t go as planned?
  • Were all of the terms and conditions of the investment explained in depth?
  • Did they let you know about any penalties you may face if you took the money out early?
  • Were your thoughts on the risk taken into consideration?
  • Did anyone ask you what your plans were for any returns?
  • Were you asked what you hoped to achieve by investing in mini-bonds?
  • Were you offered alternative products?
  • Did the person selling you the bonds seem knowledgeable about the investment products they were selling?

If you’ve been a victim of mis-selling, you may be entitled to compensation. Our team of specialists are on hand to discuss your investments to see whether there are any issues with the way that these were sold to you.

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Can you claim for a mis-sold mini-bond?

Although these types of bonds are not regulated by the FCA, you could still claim if you’ve been a victim of mis-selling.

If you felt as though you were being pressured into choosing the product, or you were coerced into moving money from an existing investment into the bond, the company could be ordered to pay compensation to you.

Claims may be made if you were led to believe that good returns were pretty much guaranteed or that the advice you were given seemed to centre on one single product.

If you believe you were mis-sold mini-bonds, call us today. Our helpful team will ask you some questions about your investment experience, provide advice and see if you have a claim.

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