Investment Bond not defaulting on dividend payments

[jacobina]

I came into a small inheritance which I wanted to invest and gain a regular income.    The company I chose offered a good rate with quarterly payments over a two year period (bond).   On research the company had a good track record.    The first two payments were paid on time, the third payment was made a month late and the fourth payment remains unpaid.    The company say they will pay the June/Sept/dec 2019 payments in December.      However,  phone calls have gone unreturned and a meeting cancelled the day before, I have now written to them requesting my funds back as they have broken the contract they have with me.   The date on that letter for payment to my bank in full has just expired.   There is an insurance policy held by the company.

 

Also, I was introduced to this investment by a broker.    What to do now?

 

any advice would be appreciated.

[AndyOrch]

Thread move dto the appropriate forum ..please continue to post here to your thread.

 

Andy

[honeybee13]

Hi.

 

Can you tell us the name of the insurance/investment company and what the name of the product is please?

 

HB

[Ethel Street]

Is the company regulated by the FCA in the UK? Is it also a regulated product?

[ericsbrother]

the broker will have insurance to ceover them so I woudl start off by asking them to explain themselves.

Now most bonds guarantee to pay out the scrip before they have to pay anyone else so no paypuit will generally mean the company has gone belly yp.

If it was a reputable firm in the first place you would ahve received notice of this and again that points at the broker and their requirement to show due diligence.

You can name names of just go straight to the FCA and see what they say abouit protection of your interests

[jacobina]

Thankyou.  The broker said they had carried out due diligence at the time and I checked companies house.   The broker also said an insurance is in place to protect investors.

 

however, the broker is now doubtful that the insurance is legitimate .  Do I have a claim against the broker?    Also will the FCA assist although the company is not covered by their ‘guarantee’.   It is a British company and a uk citizen.   I do not want to name and shame As do not want to hinder what may well become a court case. 

[honeybee13]

That's up to you,  but if you won't tell us what the product is,  we can't check it out. Would you PM me the name of the company and the product in confidence?

HB

[ericsbrother]

FCA will assist if the broker is legit and may take action if they arent so a plus plus there but they are VERY slow at starting to do anything.

Brokenr will obviously tell you anythg to get out of paying you back so take what they say with a pinch of salt and dont commit to agreeing anything with them