Mini-bond provider Vector Wealth has gone into administration today after an application to the High Court by a director of firm to wind up the business.

Sophisticated and high net worth investors are believed to have invested £4m in the firm's bond.

Vector Wealth Ltd is an FCA authorised firm that issued a mini-bond to investors called the 'Absolute Return Forex Bond.' 

The FCA has warned that although Vector Wealth has entered administration, the Financial Services Compensation Scheme is unlikely to be able to pay compensation based only on Vector Wealth’s failure to repay the mini-bonds.This is because issuing a mini-bond is not in itself a regulated activity and FSCS compensation may not be available as a result.

The FCA said the marketing material for the mini-bond stated that the proceeds of the mini-bond would be used to generate returns for investors through trading foreign exchange. Vector Wealth has told the FCA that all purchasers of the mini-bond were either high net worth or self-certified sophisticated investors. 

The FCA believes that there were approximately 40 customers who invested in Vector Wealth bonds with about £4m invested in total. 

After receiving insolvency advice, Vector’s directors concluded that the firm was insolvent and applied to the High Court on 11 April to place the firm into administration.  

Customers who are not covered by the FSCS will be creditors in the insolvency.  

Vector Wealth was an FCA authorised firm but was only authorised by the FCA to conduct some investment related activity. 

Vector Wealth is one of a number of mini-bond firms to hit the buffers following the collapse of London Capital & Finance in 2019.

James Snowdon and Michael Sanders, both of MHA MacIntyre Hudson LLP, have been appointed joint administrators of Vector Wealth Ltd and the FCA is now advising investors to wait for contact from the administrators of the company and only to get in touch later this month if they have heard nothing.

To avoid any approach by fraudsters, investors contacted by the administrators are being advised by the FCA to end the call and call back using the details below:

Firm Name: MHA MacIntyre Hudson, a trading name of MacIntyre Hudson LLP. Registered in England with registered number OC312313. 

Address: MHA MacIntyre Hudson, 6th Floor, 2 London Wall Place, London, EC2Y 5AU 

Website: https://www.macintyrehudson.co.uk

Email: mathew.adams@mhllp.co.uk, james.mackie@mhllp.co.uk, james.snowdon@mhllp.co.uk or mharestructuringrecovery@mhllp.co.uk 

Telephone: +44(0)20 7429 4100