Basset & Gold ISA Bond Review
After London Capital and Finance going bust and leaving investors out of pocket I thought it might be interesting to review other similar mini bonds to see if any of the same characteristics were present.
I already knew that Blackmore Bonds had a similar setup to LCF by paying Surge Financial 20% fees on the sale of their bonds but another company that is currently advertising heavily is Basset & Gold. It isn't made clear but this is an investment where you could lose 100% of your money.
Basset Gold are using similar imagery as LCF with apparently happy elderly savers pictured. Unlike LCF the advert does have the words "Capital at Risk" more clearly shown but they also then use the FCA authorisation to give themselves more credibility when the product on offer is not regulated or covered by the FSCS despite their claims to the contrary.
Basset & Gold appears to be 2 companies, one called Basset & Gold PLC formed in 2005 and the other B&G Finance Ltd only founded in 2017 and yet to file any accounts. Basset and Gold is a subsidiary of B&G Investments that is based in Seychelles.
The really key information is this statement on the B&G website: "Promotion of the bonds and arranging investment is through B&G Finance Ltd. and the bonds are issued by Basset & Gold Plc. Only B&G Finance is authorised and regulated by the Financial Conduct Authority ("FCA") in the UK as FRN 788684."
On investigation into the accounts for Basset & Gold plc as they are the only ones around long enough to have filed accounts there is one immediate red flag showing. The accounts highlight that the only loan is one made to a company registered in Cyprus called River Bloom Limited.
Being registered in Cyprus means you have no visibility where your money is going and more importantly all your money is invested in one company. If they fail then your investment is gone as LCF investors have found out to their cost.
All this information is publicly available but I suspect that few if any investors checked it before handing over their cash.
As can be seen from the above accounts the total of the bonds issued of £11, 935,199 (£11.9 million) has been invested into River Bloom in Cyprus. This was such a significant amount that the auditors felt compelled to mention it in their report in the 2017 Accounts as a warning in their report.
Although the directors believe that the company is able to service the debt it does raise some big question marks over the risks that are being taken by investors when all the money is tied up in the one company. As stated by the auditors the valuation of the loan is purely dependent on the financial strength of River Bloom Ltd.
We are unable to give financial advice but if you are considering investment in the B&G bonds then think about whether you would be affected if the investment failed and you lost all your money invested in the bond. If you are looking for the safety and security of a savings account then this is not the product for you.
I already knew that Blackmore Bonds had a similar setup to LCF by paying Surge Financial 20% fees on the sale of their bonds but another company that is currently advertising heavily is Basset & Gold. It isn't made clear but this is an investment where you could lose 100% of your money.
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| Basset Gold ISA Bond Review |
Basset Gold are using similar imagery as LCF with apparently happy elderly savers pictured. Unlike LCF the advert does have the words "Capital at Risk" more clearly shown but they also then use the FCA authorisation to give themselves more credibility when the product on offer is not regulated or covered by the FSCS despite their claims to the contrary.
The really key information is this statement on the B&G website: "Promotion of the bonds and arranging investment is through B&G Finance Ltd. and the bonds are issued by Basset & Gold Plc. Only B&G Finance is authorised and regulated by the Financial Conduct Authority ("FCA") in the UK as FRN 788684."
The company regulated by the FCA is not issuing the bonds so they are not protected and you could lose all your money. This is a very high risk investment product and should not be confused with a savings account where your money is protected.
On investigation into the accounts for Basset & Gold plc as they are the only ones around long enough to have filed accounts there is one immediate red flag showing. The accounts highlight that the only loan is one made to a company registered in Cyprus called River Bloom Limited.
 |
All this information is publicly available but I suspect that few if any investors checked it before handing over their cash.
As can be seen from the above accounts the total of the bonds issued of £11, 935,199 (£11.9 million) has been invested into River Bloom in Cyprus. This was such a significant amount that the auditors felt compelled to mention it in their report in the 2017 Accounts as a warning in their report.
Although the directors believe that the company is able to service the debt it does raise some big question marks over the risks that are being taken by investors when all the money is tied up in the one company. As stated by the auditors the valuation of the loan is purely dependent on the financial strength of River Bloom Ltd.
Should I invest in Basset & Gold bonds or ISAs?
We are unable to give financial advice but if you are considering investment in the B&G bonds then think about whether you would be affected if the investment failed and you lost all your money invested in the bond. If you are looking for the safety and security of a savings account then this is not the product for you.
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