What is a mis-sold mini-bond?

Mini-bond mis-selling occurs when investors are sold unregulated bonds without adequate risk disclosure. London Capital & Finance raised £237m from 11,625 investors before collapsing in 2019; £173m total compensation was paid. Where an FCA-regulated firm gave advice, FSCS claims are possible. Source: FSCS; HM Treasury.

Mini-Bonds & ISAs

Mini-Bond Mis-selling Claims — Were You Sold a High-Risk Bond or ISA That Failed?

If you invested in mini-bonds like LCF, Blackmore or Basset & Gold, you may be eligible for FSCS or adviser-led compensation.

Check My Claim — Free Do I Qualify?

£237m

Raised by LCF from 11,625 investors

£173m

Government compensation paid to LCF investors

£85,000

Maximum FSCS compensation per claim

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Do I Have a Claim?

Signs You May Have Been Mis-sold a Mini-Bond

You may have a strong case if any of the following apply:

You were advised by an FCA-regulated financial adviser to invest in a mini-bond
The bond was marketed through an FCA-authorised appointed representative
You were told the investment was 'safe', 'capital protected', or 'ISA-eligible'
The risks of total loss were not properly explained
You were not told the bond was unregulated and outside FSCS protection
The bond has since stopped paying interest or the issuer has gone into administration
You used pension or ISA savings to invest
You have not yet received the full FSCS payout

What Happened

Mini-bonds are unregulated, high-interest loans issued by companies directly to retail investors, typically promising returns of 6–15% per year. Unlike regulated investments, mini-bonds are not protected by the FSCS, cannot be traded on a stock exchange, and carry a high risk of total loss. They are frequently promoted as 'safe' or 'ISA-eligible' — descriptions that are often misleading or false.

Why You May Be Owed Compensation

Where a regulated adviser, appointed representative or professional adviser (solicitor, accountant, insurance broker) misled you about risk, capital protection or FSCS coverage, you have a claim against the firm and/or the FSCS. The FCA has also confirmed regulatory failings entitling many LCF investors to government-funded compensation.

How Much Could I Claim?

How much you recover depends on the route. The FSCS pays up to £85,000 per eligible claimant where an FCA-regulated firm advised you to invest — it has already paid mini-bond claims linked to Basset & Gold and London Capital & Finance. LCF investors were additionally covered by a separate government scheme that paid £173 million to around 11,600 bondholders at 80% of their loss, capped at £68,000. Where the bond was bought directly with no regulated advice, FSCS protection usually does not apply, and recovery depends on the administration. Source: FSCS; HM Treasury LCF Compensation Scheme.

Who Is Liable?

Depending on your situation, you may have a claim against:

An FCA-regulated IFA — Who recommended the investment — FSCS-eligible if the IFA has failed.
An FCA-authorised appointed representative — Who arranged or promoted the bonds on behalf of a regulated principal firm.
A professional adviser — Solicitor, accountant or insurance broker whose negligent advice contributed to the loss.
The FSCS — Where an FCA-regulated firm was involved in advice or arrangement — up to £85,000 per claim.

Recent Mini-Bonds & ISAs Cases

London Capital & Finance (LCF)

11,625 investors; £237m raised; collapsed January 2019. Government paid £173 million in compensation. FCA admitted regulatory failures (Dame Gloster Review, 2020).

Blackmore Bond

Approximately 2,800 investors; £46m+ raised; collapsed April 2020. Professional negligence action against insurance broker Lonsdale launched June 2024 by three law firms.

Other failures

Dolphin Trust / German Property Group, Colonial Capital, Alpha Business Centre Bond, and dozens of smaller issuers.

How to Claim

1. Free Claim Check

Tell us about your investment in 60 seconds. We confirm if you have a claim.

2. We Investigate

We gather the evidence, file with the FOS, FSCS or adviser. No paperwork for you.

3. You Get Paid

Compensation paid directly. No Win, No Fee — we only charge if you win.

Mini-Bonds & ISAs – Frequently Asked Questions

Can I still claim for LCF (London Capital & Finance)?

Yes. Even though LCF collapsed in January 2019, claims are still open. The government-funded LCF Compensation Scheme has paid out around £173 million to 11,625 investors, and the FSCS continues to accept adviser-led claims where a regulated firm was involved in promoting or advising on the bonds. If you have already received an interim or scheme payment, you may still be able to claim the shortfall up to the £85,000 FSCS cap. Contact us for a free eligibility check.

Can I still claim for London Capital & Finance?

Yes — claims for London Capital & Finance (LCF) mis-selling remain open despite the January 2019 collapse. Around £173 million has already been paid to 11,625 investors under the government-funded LCF Compensation Scheme, and the FSCS continues to accept adviser-led claims where an FCA-regulated firm (such as Surge Financial or an authorised principal) advised, promoted, or approved the LCF bonds. Claims are capped at £85,000 per person via the FSCS, and where you already received an 80% government scheme payment, we can pursue the remaining shortfall. Contact us for a free LCF eligibility check.

I already got an FSCS interim payment — can I still claim more?

Yes — interim payments often fall short of the £85,000 cap. We can claim the shortfall, plus losses from any adviser involvement.

What if there was no adviser?

You may still qualify under the FCA / Treasury LCF scheme or via the bond promoter's authorised principal.

I was told it was an ISA — does that matter?

Yes. Marketing a non-ISA-eligible bond as an Innovative Finance ISA is a regulatory breach and supports a mis-selling claim.

Are Blackmore Bond investors covered?

Many Blackmore investors have claims against the regulated principals who approved the financial promotions, and the June 2024 professional negligence action against insurance broker Lonsdale opens a further route.

How long does a mini-bond claim take?

FSCS claims typically resolve in 6–12 months; adviser-led claims 12–18 months.

What's the maximum I could recover?

£85,000 per claim from the FSCS, or full losses (plus interest) where an adviser firm and its insurer are pursued directly.