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Aug 16, 2022 · Phillip Nunn, who has been bankrupted in connection with one Blackmore Bond development, did not reply to any of Panorama's questions, despite repeated requests. ... Patrick McCreesh denied any ...
- Introduction
- FCA Involvement
- London Capital & Finance Plc
- Developments in Parliament
Blackmore Bond plc (BB) was set up in July 2016 with its registered office in Brighton, and then Manchester. It raised money by issuing “mini-bonds”. Mini-bonds are essentially an “IOU”. In return for receiving money from investors, the issuer promises to pay the money back together with interest over a period of time. Of course, if the firm fails,...
Regulatory background
Issuing your own securities (e.g. mini-bonds) is not a regulated activity under UK financial services law. This means firms issuing mini-bonds do not need to be authorised by the UK’s main financial services regulator, the Financial Conduct Authority (FCA). They are also not subject to FCA oversight and rules. Such firms’ customers are also not covered by the Financial Services Compensation Scheme, a UK statutory scheme funded by the financial services industry which pays out compensation to...
Criticism
Conservative MP Peter Gibson, Chair of the APPG on Personal Banking and Fairer Financial Service (PBFFS), called in March 2021 for an independent report into what went wrong at BB. Later in March, Andy Agathangelou, founder of campaign group Transparency Task Force (the secretariat of the PBFFS APPG) wroteto the Prime Minister urging him to take action to deal with the regulatory failures exposed by BB’s collapse. Mr Gibson said that events at BB provided “irrefutable evidence” that the FCA w...
FCA response
The FCA has defended its conduct relating to BB, saying that as both BB and the mini-bonds were unregulated, it did not have the power to intervene. It said that granting it such powers would require amendments to legislation and is therefore a matter for Parliament. According to the FCA its actions resulted in Northern Provident Investments, the firm which authorised BB’s financial promotions under the Financial Promotions Regime, withdrawing its approval, so preventing the promotion of the...
BB went into administration in the same month as another mini-bond firm, former West Ham United sponsor Basset & Gold (B&G), which had raised around £36m from 1,800 investors. Many bondholders accuse B&G Finance Ltd, a subsidiary of B&G which was FCA-authorised company and marketed the mini-bonds, of mis-selling them. The bondholders are seeking co...
The Government has emphasised the exceptional nature of the compensation scheme set up for LC&F bondholders. Economic Secretary John Glen said it was an “an important point of principle that the government does not step in to pay compensation in respect of failed financial services firms that fall outside of the FSCS. Doing so would create the wron...
Apr 30, 2020 · Investors’ concerns about Blackmore were heightened by the fact that its two directors, Patrick McCreesh and Phillip Nunn, were also directors of other investment schemes in which pensioners ...
Apr 23, 2020 · As investors face more financial pain during the coronavirus lockdown, PA takes a look at founders Phillip Nunn and Patrick McCreesh and the promises their group made to the people whose money ...
Aug 17, 2022 · The directors of Blackmore Bond, Phillip Nunn and Patrick McCreesh, paid out £5.5m from the investment pot to another one of their companies. Blackmore Bond paid an introducer, now under investigation by the Serious Fraud Office, £7m in fees.
Aug 17, 2022 · This grimly infuriating investigation interviewed care worker Linda Ryan, 61, who invested £75,000 in Nunn and McCreesh’s Blackmore property venture — and lost the lot. ‘The last bit of hope has gone,’ she said with weary defeat. ‘I’m going to carry on working to the end.’. Ordinary people like Linda should never have been ...
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Apr 23, 2020 · As investors face more financial pain during the coronavirus lockdown, PA takes a look at founders Phillip Nunn and Patrick McCreesh and the promises their group made to the people whose money they took. Two years ago Mr Nunn, the founder of the Blackmore Group, seemed happy.
