WHAT INVESTORS NEED TO KNOW

Never believe you can get high returns for little risk. Any rate much higher than 5 per cent should set alarm bells ringing.

Check who is selling and providing the investment – and whether they are authorised by the Financial Conduct Authority. Though some companies hired by MJS Capital were authorised by the FCA, the company itself and the introducer were not. This means bondholders were not protected by the Financial Services Compensation Scheme for when a company goes bust.

If a seller or provider is regulated by the FCA look at the specifics on the FCA register. Under ‘permission’ you see what a firm is authorised to do. Solent House was registered – but for money remittance services, not handling investments.

Do not be influenced by the involvement of a well-known or highly connected individual.

Anyone planning to invest significant sums should seek regulated and independent financial advice first. There is a cost for this, but the added protection is worth the fee. Search for an authorised and independent financial adviser on websites such as unbiased and VouchedFor. If an adviser is recommended to you, ensure they are authorised to provide regulated investment advice. Visit the FCA register at register.fca.org.uk.