Return of ‘safe’ website that could lose all your cash

A WEBSITE promising fixed returns of up to 14 per cent a year for ‘protected’ investments, which vanished from view last year, reappeared last week – only to disappear once more.

The ‘Safe Secure Investments’ website originally went offline last year after The Mail on Sunday warned investors about its overblown claims.

The website promoted investments that are not regulated by the Financial Conduct Authority. Ordinary people in search of better savings rates are often persuaded to put money into unsuitable schemes like this. In some instances, they lose every penny and are unable to seek redress from the Financial Services Compensation Scheme if the company goes bust. Nor do they have a right to complain to the Financial Ombudsman Service.

The products are seldom illegal but provide savers with no protection and can be run by amateurs. Promotional material fails to point this out. Offers previously sent to people who signed up with Safe Secure Investments – or its twin website Direct Property Investments, which is still live – included a bond provided by MJS Capital.

The company, now known as Colarb Capital, was cofounded by Lord Razzall, a Liberal Democrat politician.

These deals were for ‘sophisticated’ investors, though it was easy for average customers to invest. Literature promoting the bond, which was sent to prospective investors early last year, claimed annual returns up to 14 per cent. MJS said client funds would be handled by a regulated payment services provider and overseen by an independent regulated trustee. These assurances were presented in bold type.

But some investors are now struggling to withdraw their money.

One person who invested after receiving information from Direct Property Investments says she has been waiting for her money since last April. She believed the bond was regulated and felt reassured because of Lord Razzall’s involvement.

Anthony Morrow, chief executive of online advice and investment platform evestor, says: ‘Unregulated investments are a blight on the financial services industry. Using the label “sophisticated investor” can imply a sense of allure, but they are not suitable for the vast majority of investors.’

He adds: ‘Regulated advice and regulated investments will meet the needs of most investors.’

To ensure a company is regulated, check via register.fca.org.uk. To find a reputable financial adviser use websites such as unbiased or VouchedFor.

Sheila Willshere, of Direct Property, says the ‘Safe Secure’ website is again ‘under maintenance’.

She says investors are accountable for truthfully declaring eligibility.