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Just when you think the financial world has seen enough scandals, another big one hits the headlines. Recent buzz revolves around the Just Loans Group, an investment product that has come under scrutiny. If you're hearing names like "Just cash flow," "Escher Marwick Bonds," "City One Securities," or "Alexander David Securities," and they sound alarmingly familiar, this post is for you.
For clarity's sake, let's first break down the situation. Just Loans Group (JLG) is not just any investment product; it's one that involves a number of SIPPs, specifics of which are yet to be confirmed. Managed by investment provider Escher Marwick Bonds, it goes by the more popular name: Just Cash Flow.
The major issue? A significant portion of the loans made are non-performing. This means that the expected returns on these loans are not being met. Furthermore, the deteriorating status of borrowers and underlying securities, with evidence of many dissolving or facing liquidation, is raising red flags.
JCF, currently in administration, has been unable to manage these loans effectively. They do not possess the needed infrastructure to maintain the value of these loans. The implications? A decline in value for note-holders who had invested their hard-earned money.
In a twist to the story, on 19 June 2023, a notice was released announcing a Note-holders' Meeting to be held online on 11 July 2023. This meeting will determine the appointment of Shield Servicing Limited as a consultant for loan servicing. This strategic move aims to streamline the management of the non-performing loans.
The backstory to this is intriguing. On 27 January 2017, two sterling loan facilities were granted to the Just Cash Flow plc (JCF) through an agreement. By December 2022, JCF found itself with appointed joint administrators, Geoffrey Paul Rowley and Paul David Allen, suggesting its struggling status.
Furthermore, an announcement on 13 March 2023 from the London Stock Exchange’s non-regulatory news service, Reach, highlighted the delisting of Escher Marwick Plc, further deepening concerns for investors.
A key point to note here is the involvement of IFAs, especially City One Securities and Alexander David Securities. St Pauls Marketing Ltd, registered as an Appointed Representative of these firms, may have advised individuals to transfer their pension funds into SIPPs linked to Just Loans Group.
Considering Just Loans was only in existence for a brief 18 months during this period, it's alarming that many clients were convinced to move their pension funds into such a high-risk, illiquid investment as Just Loans Debenture Bonds. Some were even promised guaranteed returns of at least 6% per annum.
However, it's crucial to remember that the Just Loans Group, as a whole, wasn't regulated by the Financial Conduct Authority (FCA). This limitation means that direct compensation claims against Just Loans Group through the FSCS are off the table.
But there's hope. If an FCA-authorised adviser or firm directed you towards investing with the Just Loans Group, there may be an avenue for claims. Especially if St Pauls Marketing was the advising entity, claims might be directed against their principal firms.
The burning question is: how do you recoup losses if you've been caught up in this debacle?
That’s where we at CP Financial Claims step in. Our dedicated team is closely monitoring the unfolding of the Just Loans Group situation. If you believe you were misled into transferring your pension or making an investment based on faulty advice, don’t despair.
While the complete information is still unraveling, our commitment is to keep you informed and help you navigate the next steps. Whether it's pursuing compensation or simply getting clarity on your investments, CP Financial Claims is here to support you.
If any of the names mentioned resonate with your investment choices, it's time to get in touch via the contact form below. Please enter your details for a free, no-obligation chat with our team.
You are not obliged to use our service. It is possible for you to present your claim for free, either to the firm, or person against whom you wish to complain, or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.
