Financial Services

Debt Instrument Claims

Recovering losses from bonds, gilts, and other fixed-income investments

SRA Regulated
No Win, No Fee Available
25+ Years Experience

Debt Instrument Mis-Selling

Debt instruments including corporate bonds, high-yield bonds, structured notes, and loan notes are often presented as safe, steady-income investments. However, many investors have been mis-sold inappropriate debt instruments carrying credit risk, illiquidity, and potential for total capital loss. We help investors recover losses from unsuitable bond portfolios, defaulted loan notes, and high-risk debt instruments that were misrepresented as low-risk alternatives to cash savings.

Not All Bonds Are Safe

While government gilts are low-risk, corporate bonds and alternative debt instruments can carry significant credit risk, market risk, and liquidity risk. Financial advisers must ensure debt investments match your risk tolerance and explain that capital is at risk.

Common Debt Instrument Mis-Selling

Mini-Bonds & Loan Notes

Unregulated mini-bonds offering high returns but carrying extreme credit risk, often resulting in total loss when issuers collapse.

High-Yield Corporate Bonds

Junk-rated corporate bonds with high default risk, unsuitable for risk-averse investors seeking secure income.

Structured Notes

Complex structured products with counterparty risk, capital at risk, and opaque terms not properly explained.

Illiquid Bond Funds

Property bond funds and other illiquid debt investments suspending redemptions, trapping investor funds.

Emerging Market Debt

High-risk sovereign and corporate bonds in developing countries with currency risk and political risk.

Perpetual Bonds

Bonds with no maturity date carrying reinvestment risk and vulnerability to issuer call provisions.

What Advisers Must Disclose

FCA rules require clear disclosure when recommending debt instruments:

Credit risk - the risk that the borrower defaults and you lose your capital
Market risk - bond values fluctuate with interest rates and market conditions
Liquidity risk - you may not be able to sell bonds quickly or at fair prices
Whether investments are regulated or unregulated
FSCS protection status (most bonds are not covered)
All charges, fees, and exit penalties
Counterparty risk for structured products

Our Claims Process

1

Investment Analysis

We review your bond portfolio, investment documentation, and suitability assessments. We identify whether debt instruments were appropriate for your risk profile and whether risks were properly disclosed.

2

Expert Evidence

We instruct independent financial experts to assess suitability of debt instrument recommendations. Expert reports analyse credit quality, diversification, liquidity, and whether investments matched your stated objectives.

3

Formal Complaint

We submit detailed complaints to your adviser or bond provider, setting out regulatory breaches, misrepresentations, and losses. We negotiate compensation for unsuitable recommendations and inadequate risk disclosure.

4

Ombudsman & Court

If complaints are unsuccessful, we escalate to the Financial Ombudsman Service or pursue court proceedings. We work on a no win, no fee basis for qualifying claims, removing financial barriers to justice.

Why Choose Us

Fixed-Income Specialists

Extensive experience in bond mis-selling claims including mini-bonds, corporate bonds, and structured notes.

No Win, No Fee

We offer no win, no fee agreements for qualifying debt instrument claims, so you can pursue compensation risk-free.

Credit Analysis Expertise

Deep understanding of credit risk, bond markets, and FCA conduct requirements for debt instruments.

Proven Results

Strong track record of successful bond mis-selling claims through Ombudsman and court proceedings.

Frequently Asked Questions

Common questions about debt instrument claims.

Mini-bonds are unregulated debt instruments issued by companies to raise capital directly from retail investors. They typically offer high interest rates (6-10%) but carry extreme credit risk - if the company fails, you lose everything. They're not covered by FSCS protection and are often illiquid. Many mini-bond issuers have collapsed, leaving investors with total losses.

No. The Financial Services Compensation Scheme does not cover losses on bonds themselves. FSCS may cover poor investment advice about bonds, but not the underlying bond investment. This is why proper risk disclosure and suitability assessment are crucial when bonds are recommended.

Yes, if you were mis-sold the bonds. Even though the issuer has failed, you can claim against the financial adviser who recommended the unsuitable investment. Compensation comes from the adviser or their professional indemnity insurance, not the failed bond issuer.

Bonds are unsuitable if they don't match your risk tolerance, liquidity needs, or investment objectives. Common unsuitable recommendations include high-yield junk bonds for cautious investors, illiquid bonds for those needing access to funds, or concentrated bond portfolios lacking diversification. Inadequate disclosure of credit risk is also a key indicator of mis-selling.

Ready to Take Action?

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Get in Touch

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Phone

01903 931043

Office Hours

Mon-Fri: 9:00 AM - 5:30 PM