WE’RE WATCHING YOU
THE Financial Conduct Authority has warned customers of mini-bonds firm Northern Provident Investments that they may be contacted by fraudsters following the firm’s decision ten days ago to put itself into liquidation.
‘Rescue deals’ that involve handing over more money may well be scams.
The Belfast business was fully authorised by the watchdog and used its status to allow investors to put their savings into high-risk bonds.
NPI also vetted and approved advertising issued by other companies that marketed these risky IOUs, including Blackmore Bond, which collapsed last year, owing £46 million.
I warned in April this year that the unlicensed investment firm Your Options Ltd was using NPI’s authorised status to give false reassurance to customers tempted by the 7 per cent yield on its Choices Bond. The Halifax company claimed NPI had ‘all of the relevant protections and permissions’, but failed to spell out that these did not include cover under the Financial Services Compensation Scheme.