• 26/11/2019 | Group News

    Is Castle Trust affected by the FCA's announcement on mini-bonds?

    Castle Trust welcomes the FCA’s announcement today regarding its intervention on mini-bonds. These rules do not apply to our Fortress Bonds and there is no change to our customers being eligible for FSCS protection. We provide more information on the FCA's announcement in this article.

    Castle Trust welcomes the FCA’s announcement today regarding its intervention on mini-bonds. These rules do not apply to our Fortress Bonds and there is no change to our customers being eligible for FSCS protection. Castle Trust will continue to sell Fortress Bonds beyond 1 January 2020, when the FCA’s intervention takes effect. Castle Trust remains on course to become a bank in early 2020 and we will continue to provide you with updates as our application progresses.

    What is the FCA’s decision?
    The FCA has today announced it is introducing temporary rules to prevent consumer harm, by banning the promotion of high risk speculative mini-bonds to most retail consumers. The rules will apply from 1 January to 31 December 2020.

    How does this affect Castle Trust’s Fortress Bonds?
    These rules do not apply to Castle Trust’s Fortress Bonds and there is no action required by either Castle Trust or its customers. Because they are listed on the Irish Stock Exchange, Fortress Bonds are not considered to be ‘illiquid speculative securities’ and are therefore exempt from the FCA’s intervention.

    Why has the FCA taken this decision?
    The FCA has used its temporary product intervention powers because it is concerned about the widespread marketing of speculative illiquid securities, particularly online. They are high risk and difficult for most retail investors to understand. The FCA is concerned that retail customers may receive misleading information suggesting these products are more secure or less risky than is the case.

    Could this affect Fortress Bonds in the future?
    We do not expect the action taken by the FCA to affect Fortress Bonds in the future. In September 2019, we wrote to all Fortress Bond holders explaining that Castle Trust had been invited by our regulators to apply to become a bank. When we become a bank, we will consult with customers on the opportunity to have Fortress Bonds converted to bank deposits, still paying the same interest rate and still maturing on the same date. We will explain the process for doing this closer to the time we become a bank.

    Are Housa Bonds affected by these rules?
    No. Castle Trust no longer offers Housa Bonds and they do not fall within the scope of this intervention.

    How is Castle Trust performing at the moment?
    We are pleased with the performance of the business to date, which is why we believe that this is a good time for us to move towards becoming a bank. You can find information about our latest financial performance on our website. In the six months to March 2019, we made a profit after tax of £1.2m. Our next financial statements will be published in January 2020.

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  • 04/09/2019 | Group News

    Castle Trust invited to apply for a banking licence

    Castle Trust has been working closely with the Prudential Regulation Authority and the Financial Conduct Authority on our banking licence application, which we submitted in early September 2019.

    September 2019

    In April 2018 we announced our intention to become a bank. Since then, we have been working closely with both UK regulators, the Prudential Regulation Authority and the Financial Conduct Authority, on our banking licence application. We were recently invited to submit our application, which we did this week.

    This is a natural next step in Castle Trust’s journey that started when we were founded in 2012 with a simple mission: to help both investors and borrowers achieve their financial goals. Becoming a bank is an exciting milestone but it won’t change our focus on doing what’s right for our customers. In fact, it means we’ll be able to offer a broader range of products in the future.

    This stage of the rigorous application process is expected to take until spring next year. There is nothing existing customers need to do now and we’ll keep customers updated on a regular basis.

    Speaking about the application, Martin Bischoff, Chief Executive Officer said:

    “Being invited to apply for a banking licence by the UK regulators is testament to the strength of the careful planning and preparations we have put in place. Castle Trust has always been proud of being different, and now we’re in the process of becoming a different kind of bank. We’re very excited about the opportunities that come with a banking licence to better help our customers achieve their financial goals.”

    You can find more information about our banking application on our Q&A page.

    Read more
  • 18/07/2019 | Group News

    Our latest financial statement

    Castle Trust has published its latest financial statement, as at 31 March 2019.

    Castle Trust has published its latest financial statement, as at 31 March 2019. The full detail of the statement can be found in the updated 'Supplementary Prospectus 19 07 04' document in the Prospectus Documents section of the Investments page, and a downloadable Financial Strength Summary can be found at the bottom of the About Us page.

    The summary is as follows:

    Castle Trust is a financial organisation that continues to go from strength to strength. We are a provider of investment, mortgage and consumer lending products, employing over 220 people across our executive headquarters in the City of London, and an administration centre in Basingstoke, Hampshire. Launched in October 2012, Castle Trust’s principal shareholder is the leading private equity firm J.C. Flowers & Co., which currently manages circa £6 billion in assets.

    As at 31 March 2019, customers had £737 million invested into our Fortress Bonds, a product we launched in July 2014. In the last 12 months alone, interest payments of more than £16 million had been made to customers, with all payments (including capital repayments) being paid to those customers when due. Customer satisfaction was such that approximately 73% of customers reinvested with Castle Trust when their existing investment reached maturity.

    As at 30 September 2018, Castle Trust’s total loan book stood at over £656 million. This included £497 million of mortgages secured on UK based, predominantly residential, property with the remainder of the book being unsecured consumer and wholesale lending. The business also had over £163 million of cash and cash equivalents that were held in reserve to meet short term funding requirements.

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  • 10/04/2019 | Group News

    The FSCS cover limit for investments has been increased to £85,000

    The maximum FSCS claim limit per person for investments is now the same as deposits, but other differences between the two products still remain…
    With effect from 1 April 2019, the Financial Services Compensation Scheme (FSCS) has increased the maximum level of protection available to individuals on investments to £85,000 (£170,000 on jointly-held investments), which is the same limit already provided on deposits.

    Whilst the maximum level of cover per individual is now the same, it should be noted that any other differences in the cover provided by the scheme for deposits and investments remain, and that claims will continue to be subject to eligibility. More information about the FSCS and eligibility criteria can be found on their website here
    Read more
  • 19/03/2019 | Group News

    New Managing Director for Omni Capital Retail Finance

    On 18th March 2019, Castle Trust announced a new appointment within Omni Capital Retail Finance.

    Castle Trust Capital plc is pleased to announce the appointment of Ronnie Denholm as Managing Director of Omni Capital Retail Finance, its point of sale finance division.

    Following the acquisition of Omni Capital Retail Finance in 2016, Castle Trust has restructured the operations of the business and has ambitious plans for progress.

    Ronnie is an experienced financial services leader and joins the business from Barclays Bank Plc, where he held various Managing Director roles across the business, including most recently Barclays Partner Finance, one of the UK’s largest point of sale finance companies.  Prior to joining Barclays, Ronnie held several senior leadership roles across the American Express group, with a strong growth record across each of the business areas he led.

    Martin Bischoff, Chief Executive Officer of the Castle Trust Group said: “Opportunities to work with someone of Ronnie’s calibre are rare, so we are privileged to have him on board.  As he’s demonstrated in the past, he is a very capable pair of hands to lead the business as it looks to grow.   We have big ambitions for Omni Capital Retail Finance, which Ronnie is integral to helping us achieve.”

    Speaking of his appointment, Ronnie said: “I am delighted to join Omni Capital Retail Finance.  The company has undergone a lot of changes recently and the prospect of leading the next phase of the company’s growth is an exciting challenge.  I look forward to working together with the team to consolidate the business’ position within the market and expand its operations further. “

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  • 18/09/2018 | Group News

    Senior management changes

    On 2nd May 2018, Castle Trust announced two further management changes.
    2nd May 2018

    Castle Trust announces two further management changes. 

    Barry Searle, the company’s current Chief Operating Officer will become the company’s new Managing Director (Mortgages).  Barry has been with Castle Trust since 2014, he has been instrumental in the growth of the company, especially within the mortgage division. He held the largest underwriting mandate and had overall responsibility for operations.  During Barry’s financial services career he has held senior roles at various institutions including Legal and General’s mortgage division and GMAC RFC.

    Stuart Sykes will be joining the company as Operations Director from MyJar, where he has been Group Customer Operations Director for the last four years.  He has previously held roles at ICICI Bank, RBS and Lloyds Banking Group.

    Speaking of the appointments, Martin Bischoff, Chief Executive Officer said:

    “As the company’s COO, Barry is already very familiar with both the industry and the aims of the business and was a natural choice to fill the role.  He has contributed enormously to the success of the business so far and will be a pivotal part of our transition to become a bank.

    “Stuart has extensive experience in the lending environment, particularly in consumer finance.  We are delighted that he has chosen to join us as we move into Castle Trust’s next phase.”

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Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans are subject to status, terms and conditions. This website is for information purposes only. If you are in any doubt regarding suitability of our products please seek advice from an accredited independent mortgage adviser.

You risk losing capital should Castle Trust become insolvent.

Castle Trust is the trading name of both Castle Trust Capital plc (company number 07454474) and Castle Trust Capital Management Limited (company number 07504954). Castle Trust is authorised and regulated by the Financial Conduct Authority, under reference numbers 541910 and 541893. Registered office: 10 Norwich Street, London, EC4A 1BD. Registered in England and Wales.

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