Are Blackmore Bonds an ISA Allowed Investment?
Update - Blackmore have recently updated their website to say that bonds ARE transferable but there is no process to do so. This may mean that they comply with ISA regulations.
Recently London Capital and Finance had problems when the FCA ordered them to cease marketing their bonds and investigated them for misleading marketing information. It appears that Blackmore Bonds are using some of the same tactics that caused problems for LCF.
As outlined on the FCA website ruling related to LCF for bonds to qualify to be held in an ISA they must be transferable. LCF bonds were not so the LCF ISA was not legally allowed as an ISA.
As the section from the FCA report makes clear London Capital and Finance bonds were not ISA compliant because they couldn't be transferred to anyone else.
It appears that according to the Blackmore Bonds website their bonds cannot be transferred either which would suggest that the Blackmore ISA is also not complying with the ISA rules and that the interest is being paid incorrectly as tax free.
As per the screenshot above which states "The Bonds cannot be transferred to any third party and are not listed on any stock exchange"
This means that any investors in Blackmore Bonds may also be liable to pay tax on all of their ISA investments as well as running the serious risks of losing their capital should Blackmore get into further financial difficulty having lost millions last year.
Recently London Capital and Finance had problems when the FCA ordered them to cease marketing their bonds and investigated them for misleading marketing information. It appears that Blackmore Bonds are using some of the same tactics that caused problems for LCF.
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| Blackmore Bonds ISA advert on Google |
As outlined on the FCA website ruling related to LCF for bonds to qualify to be held in an ISA they must be transferable. LCF bonds were not so the LCF ISA was not legally allowed as an ISA.
As the section from the FCA report makes clear London Capital and Finance bonds were not ISA compliant because they couldn't be transferred to anyone else.
 |
| FCA ruling on London Capital & Finance |
It appears that according to the Blackmore Bonds website their bonds cannot be transferred either which would suggest that the Blackmore ISA is also not complying with the ISA rules and that the interest is being paid incorrectly as tax free.
 |
| Is a Blackmore Bond ISA allowed? Risk statement |
This means that any investors in Blackmore Bonds may also be liable to pay tax on all of their ISA investments as well as running the serious risks of losing their capital should Blackmore get into further financial difficulty having lost millions last year.
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