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

Paid to LCF bondholders by the FSCS and the government scheme combined

£85,000

Maximum FSCS compensation per claim

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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 was paid to bondholders through the FSCS and the government's LCF scheme combined. Where an FCA-regulated firm gave advice, FSCS claims are possible. Source: FSCS; HM Treasury.

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. After the Gloster review found failings in the FCA's supervision of LCF, the government set up a compensation scheme for LCF bondholders, which has since closed to new claims.

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 bondholders who did not qualify under normal FSCS rules were covered by a separate government scheme, administered by the FSCS, which paid more than £115 million at 80% of the principal invested, capped at £68,000; the FSCS had already paid £57.6 million to 2,871 bondholders under its own rules. 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. The FSCS paid £57.6m to 2,871 bondholders under its own rules and more than £115m under the government compensation scheme. 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.

Firms recently added to the FSCS failed-firms list

If one of these firms advised you, the FSCS may pay compensation even though the firm can no longer pay you itself.

See the full list of failed pension and investment firms

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 London Capital & Finance (LCF)?

Possibly, but check your position first. The government's LCF compensation scheme has closed to new claims after paying more than £115 million, and the FSCS separately paid £57.6 million to 2,871 bondholders under its own rules. If an FCA-regulated firm advised you to invest, or approved the promotions you relied on, you may still have a route against that firm, through the Financial Ombudsman or, if the firm has failed, the FSCS. Contact us for a free eligibility check. Source: FSCS; HM Treasury.

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?

The government LCF scheme has closed to new claims, and FSCS protection usually needs a regulated firm to have been involved. You may still have a route against a regulated firm that approved the bond's financial promotions — we can check.

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.