Mini-bonds can be a tricky prospect. Even those of us being advised by independent financial advisors can get it wrong, with pitfalls for both issuers and investors.
Maddox Legal is able to see the problems on both sides and help navigate these challenges. Corporate entities issuing bonds need sound advice on the structure of the investment. All applicable information, financials and risk warnings should be provided in the offer document and the statements and opinions contained within it properly verified. It’s also important to understand the regulatory regime in particular and to whom exactly the bonds can be marketed. Meanwhile, investors need to bear in mind their own set of factors. Investments may lose money initially, with overheads and commissions potentially resulting in investment monies as low as 70%. This makes doing your own research on past investments essential.
Be sure to analyse the offer document with your lawyers and determine the legality of the investment, bearing in mind that a security trustee insurance wrapper doesn’t necessarily mean it may be any better for an investor.
Visit maddoxlegal.co.uk for more information.