Astute Capital Limited: Failed investment firm leaves investors high and dry

Astute Capital – which some years ago was promoting ISA investments with high interest returns – has finally been wound up, leaving those investors with nothing. But the way their scheme was set up has left a possible avenue for compensation claims – which many of those affected are now pursuing.

The background to Astute Capital

Back in 2019, when interest rates were at historic lows, Astute Capital was offering a fixed rate ISA paying 8.24% interest over a three year term. The minimum investment was £5000, and Astute’s own website described the product as a ‘£500 million publicly listed bond program’.

The basis for this scheme was Astute Capital’s fixed-term investment bonds – essentially lending money to the firm for a set period with the expectation of a return – which were indeed listed on a bonds market with Euronext in Dublin. Investors could hold these bonds within a stocks and shares ISA, provided and managed by a company called Hilbert Investment Solutions, and several other management firms also arranged investments into Astute, including Reyker Securities, Logic and Mayfair Capital.

Where it went wrong for investors

As these bonds were investment products rather than savings, they inherently carried a higher risk – and as they were listed in Dublin, they weren’t covered by the UK’s Financial Services Compensation Scheme.

Following poor performance by Astute Capital in lending to property developers, in March 2022 the firm restructured its balance sheet and converted bondholders’ debt of £22 million to 28 million shares based on an independent valuation of the business of £55 million. Since then Astute has continued to perform poorly, and in 2024 the decision was taken to wind up the company. As the shares have never been listed on any stock exchange they have always been virtually worthless, and for those holding bonds within an ISA the losses were reflected in their ISA’s performance.

The route to compensation

While many compensation claims focus on poor performance, in the case of Astute Capital the possibility for compensation lies with Hilbert Investment Solutions. As the ISA manager and custodian, they provided the tax-free ISA wrapper, carried out the purchase of the bonds and held the investment within the ISA structure.

Even though Hilbert didn’t issue the bonds or provide personal financial advice, they are regulated by the Financial Conduct Authority (FCA) and as such have certain responsibilities when carrying out investments for clients – especially those that are complex or higher risk. Indeed, an investigation by the Financial Ombudsman confirmed that Hilbert had a responsibility to their clients regarding the risks attached to the bond investments.

No advice, no complaint?

Many people assume if no financial advice was provided they can’t complain – but here the complaint would relate to Hilbert’s process, the appropriateness of the investment and whether they met their regulatory responsibilities.

Any complaint would be based on:

• was the investment difficult to understand?
• as an investor, did you have relevant experience of higher-risk investments?
• would clearer information have affected your decision to invest?
• should appropriate checks have been carried out before the investment was made?

Keeping you up to date

The situation with Astute Capital and Hilbert is ongoing, and we’re continuously tracking developments – so you can rest assured we’ll bring you updates as soon as further details become available.

What happens next and how CP Financial Claims can help

With such a complex investment structure and the complaint route not being obvious, it can be difficult to know where to start. As a specialist claims management company well-versed in recovering money from failed or mis-sold investments, we can help.

We can handle the entire process of putting together your claim, including paperwork and communicating with the FCA, the Ombudsman or the firm directly. There’s nothing to pay upfront, and you only pay a fee if we’re successful, so it could be well worth your while talking to us now.

Your next steps

If you’ve been affected by the failure of Astute Capital, you can submit your details on this page for a free, no obligation chat with our team of experts. They’ll give you clear, straightforward advice on the options available to you.