Never under-estimate the value of investment advice

The recent failure of a promoter of high return investments was a reminder of the dangers of being lured by headline numbers alone.

Last year London Capital and Finance Plc (LCF) marketed what they claimed to be Innovative Finance ISAs offering fixed interest rates of 8% – and this was at a time when no fixed rate cash ISA offered even half as much return. Unfortunately, LCF’s 8% rate did prove too good to be true. In January 2019, LCF called in the administrators and two months later HMRC announced that the LCF ISAs did not comply with ISA regulations and their income (while it lasted) was therefore taxable.

Investors may only receive back as little as a fifth of the amount they invested. While LCF itself was regulated by the Financial Conduct Authority, the mini-bonds issued by LCF to back their ISA were unauthorised and not covered by the Financial Services Compensation Scheme.

Ironically, investors might have had a chance of compensation if a regulated financial adviser had (badly) advised them to invest in LCF. However, LCF only sold its products direct to customers.

The lesson from LCF is an old one: investment without advice may look a cheap option, but it can carry its own heavy cost.

Please get in touch if you would like to discuss your circumstances with one of our team of advisers.


The value of your investments and the income from them can go down as well as up and you may not get back the full amount you invested.

Past performance is not a reliable indicator of future performance.

Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.  


COVID-19 - BUSINESS AS USUAL (WELL ALMOST!)The need for good financial advice has not gone away and we have worked hard to ensure that we can continue to provide advice during this challenging period. Indeed, rarely has the need for investment and retirement advice been more important in such turbulent economic circumstances. Whilst we adapted our approach due to the current restrictions, our team members are now back in the office. We continue to provide the usual high standards of service to our existing clients – as well as welcoming new enquiries. If you are looking for financial advice please use the “contact” link on our website or telephone 01246 559955 or email