Innovative Finance ISA (IFISA) manager Northern Provident Investments has gone into liquidation, leaving its 20 IFISA-eligible bonds in limbo.

The Belfast-based investment firm officially entered into voluntary creditors’ liquidation on August 20, 2021.

It was first authorized by the Financial Conduct Authority (FCA) in July 2015, and subsequently obtained approval from HMRC to act as manager of IFISA.

According to recently published correspondence by the FCA, in February 2020, the regulator told Northern Provident Investments that it must stop approving financial promotions for issuers of mini-bonds. This follows FCA’s temporary ban on the marketing of mini-bonds, which came into effect on January 1, 2020.

Shortly after, Northern Provident posted a message on its website telling users that it was no longer offering mini bonds.

In August 2021, a message replaced the website, stating that “Northern Provident is ceasing to operate and will no longer carry out any transactions on behalf of its customers.”

At the time of liquidation, Northern Provident Investments acted as IFISA manager of 20 bonds. These include an investment fund for the financing of IFISA disputes (Just ISA), an investment fund in retirement homes (Barbican ISA) and the Azurite ISA – a bond eligible for IFISA, which finances real estate renovations in Monaco.

Northern Provident also acted as the ISA manager of mini-bond provider Blackmore Bonds, which went into effect in April 2020 after investors did not receive a refund.

Other obligations under the responsibility of Northern Provident included Absolute ISA, Acorn ISA Bond, ISA Choices, Convivia ISA of Convivia Capital, Fluid ISA, FREE Wind ISA, Knightsbridge Capital Bond, Northbridge ISA , the Ziphouse IFISA backed by real estate, the Access Commercial bonds, the IFISA of Astute Capital and the ISA-eligible bond of Satchi Holdings.

She also managed IFISA-eligible bonds on behalf of Haletone / Shetland Space Center, Synthesis Analytics UK, Summit Resorts & Development Ltd, The Electric Vehicle Company and Leonne International.

In a post on its website, Northern Provident told bond investors: “Your investment continues as before and is not affected by the closure of Northern Provident Investments.

“Northern Provident Investments does not own any of your funds or securities and you are not invested in Northern Provident Investments.

“The bond issuer you invest with continues to trade and your bonds continue to be active.”

He added: “Northern Provident Investments will cease providing the ISA envelope through which your investment was made once in liquidation, but that does not mean that you have lost your investment or even lost the opportunity to have your ISA provided by. another manager.

“Your bond issuer… will seek to make arrangements to ensure that your ISA is supported by another ISA manager. “

At the time of writing this report, it was not clear whether any new arrangements for the ISA Manager had been made.

The FCA has warned consumers to be wary of scammers in the wake of the company’s liquidation.

The Financial Services Compensation Scheme (FSCS) is in the early stages of investigating whether there are any claims against Northern Provident Investment that qualify for indemnification.

Jason Baker and Geoff Rowley of FRP Advisory Trading Limited have been appointed liquidators.

Affected investors can contact the liquidators at [email protected]