MJS Capital plc (Colarb Capital plc since October 2018)

Update 10-Oct-18: On 5 October 2018, MJS Capital plc renamed to Colarb Capital plc. This article was published on 19 January 2018 when Colarb / MJS was known by its old name.

MJS Capital offers unregulated corporate loan notes paying 5.85% interest for a one year term, 6.85% for two years, 7.85% for three years, 8.85% for four years and 9.85% for five years. Interest is paid out quarterly, or can be rolled up (which slightly increases the annual return).

The bonds can be redeemed early, subject to a penalty and provided that MJS Capital “determines in its discretion that it has sufficient liquidity to satisfy the request in whole or in part.” The penalty is 5% plus the difference between any interest paid out and the interest the investor would have received had they chosen that term originally. For example, someone who invested in an 8.85% four year bond and redeemed it two years early would have to pay [8.85 – 5.85 + 7.85 – 6.85] = 4%, plus 5%.

Status

Open to new investment.

The investment is not openly promoted on MJS Capital’s website, but is currently being promoted by unregulated introducers. I easily obtained details of the offering without being asked to provide any proof that I qualified as a sophisticated or high-net worth investor.

Who are MJS Capital?

shaun prince
Shaun Prince, MJS Capital plc owner

MJS Capital’s website gives no details as to who is behind the company. The Information Memorandum and Companies House show that the directors of the company are Shaun Prince, Lord Timothy Razzall (Chairman) and Martin Westney. (Ajaz Shah is also listed as a Director in MJS’ Information Memorandum, but not on Companies House – he was appointed as a director on 15 May 2017 and removed as a director the same day.)

 

MJS is effectively 100% owned by Shaun Prince who holds 12,500 of the company’s 12,501 shares. The single other share is owned by a Stephen Prince, presumably related.

How secure is the investment?

These investments are unregulated corporate loans and if MJS Capital defaults you risk losing up to 100% of your money.

Investors’ money is used to invest in arbitrage trading in financial instruments.

Arbitrage is a perfectly valid way of making money, but the returns available are limited as any opportunity to take advantage of different prices on different markets will quickly be seized upon by other investors until the opportunity disappears.

If MJS Capital fails to make sufficient arbitrage profits to pay its bond holders up to 14% per annum, MJS Capital will default and investors risk losing up to 100% of their money.

The literature says that profits generated from the Company’s investments will be held in a designated Security Fund, which will be administered by a Security Trustee. However, the profits generated from the Company’s investments are being used to pay investors their interest and capital, so this offers no protection against the possibility that MJS Capital fails to make sufficient returns from arbitrage to maintain interest and capital payments to investors.

The literature says that Bonds are backed by a charge over the Security Fund, the Company’s cash balances, its trading contracts which utilise the proceeds of issue of the Bonds, and book debts arising from deploying the proceeds of issue of the Bonds.

The Security Fund we have already covered. If MJS Capital defaults, it will be because the Security Fund has already run out of money, i.e. profits generated from the company’s investments were insufficient to meet its obligations.

The company’s cash balance was £194 acccording to the latest accounts filed with Companies House (March 2016). (194 pounds, not thousands or millions).

Regarding the final two, given that MJS Capital’s business is to buy investments on one exchange and almost immediately sell them on another to generate profits from arbitrage, it is not clear what there will be to sell in the event that MJS Capital has insufficient resources to pay investors.

The company has an insurance policy of £10 million against the event that MJS Capital executes a trade not in accordance with its client instructions, and £20 million against operational risks such as fraud and computer viruses. Neither of these insurance contracts have anything to do with the possibility that MJS Capital fails to generate sufficient returns from arbitrage to meet its promises to investors.

Should I invest with MJS Capital?

As with any unregulated corporate bond, this investment is only suitable for sophisticated and/or high net worth investors who have a substantial existing portfolio and are prepared to risk 100% loss of their money.

Any investment offering up to 14% per annum yields should be considered very high risk (i.e. higher risk than a diversified portfolio of stockmarket funds).

These investments are certainly not  “a very low risk strategy for our investors” as MJS Capital owner Shaun Prince has described them.

Before investing investors should ask themselves:

  • How would I feel if the investment defaulted  and I lost 100% of my money?
  • Do I have a sufficiently large portfolio that the loss of 100% of my investment would not damage me financially?

If you are looking for a “secure investment”, you should not invest in unregulated products with a risk of 100% capital loss.

Footnote

Shaun Prince, the owner of MJS Capital, took part in this thread on Moneysavingexpert.com as a verified representative of his company.

During this thread Prince made the frankly astonishing statement “The saying “if it looks too good to be true it almost certainly is” is no doubt a saying created within the regulated market to encourage investors away from investments offering higher than average yields.”

In linguistic terms, Prince is objectively wrong. The phrase “too good to be true” is attested as early as 1580, long before there was such thing as a regulated market.

Less pedantically, investors will have to make up their own mind whether the phrase “too good to be true” is a conspiracy to scare them away from high-risk loan notes.

In any case, this investment is clearly not “too good to be true”. It is a high risk investment with a risk of 100% capital loss, and the high coupon paid by the bonds reflects that.

In that thread, Prince claimed that MJS Capital would be listing on the London Stock Exchange in April 2017. However, as at January 2018 a search for MJS Capital on the LSE returns no results.

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39 thoughts on “MJS Capital plc (Colarb Capital plc since October 2018)

  1. I think I have just lost my £20k investment, feel such a fool for being taken in and not doing my homework.

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  2. Hi Jane. Could you elaborate as to why you believe you’ve lost your investment? I’m aware that MJS Capital has had “banking issues” recently but not of this progressing into investor losses.

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  3. MJS Capital plc have just released latest set of report and accounts. They make for some very interesting reading and essentially upon further scrutiny suggest some alarming realities for investors. Report and accounts accessible for all via Companies House…………..

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  4. You can never speak to anyone and they always fail to call you back. The my are always late paying interest payments stay away from them.

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  5. I Asked for my capital back as an early redemption, contract states they have 30 days to return it. It’s been six weeks so far and nothing. They fail to reply to emails and telephone calls.

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  6. I first encountered problems with this company with late interest payments from my three year bond, in January 2018, then again with the following payment in March 2018. Both of these payments were 11 days late.
    I also had a one year bond that was due to mature on 25th March. Numerous emails and texts passed between Shaun Prince and me. On four separate occasions, I received a personal assurance that the repayment of my bond would be completed on certain dates. Totally worthless and empty promises. Also, not one single word of apology with an explanation. To try and contact the company by telephone also proved to be impossible. It’s amazing the coincidence that the person you’re trying to call has just walked out of the office or just gone into a meeting. – But they will get back to you – will they hell!!
    I decided that if the June interest on my three year bond was more than one week late, I would then go for early redemption of the whole bond, as I no longer trusted MJS Capital and would fear for any repayment upon its maturity.
    There was no warning, no explanation and no apology, but interest did eventually come through one month late, but by then the negligible amount of confidence that I retained in MJS Capital plc had now completely dissipated and seriously calls into question not only their honesty and integrity but their ability to manage the company.

    Therefore, I decided to redeem my three year bond early. I was ‘assured’ that the monies for the early redemption of this three year bond would be in my bank account by 24th August 2018. I am still waiting.
    I have been contacted by other investors with this vile company who have been treated in a similar vein, thanks to previous post that I have put up on Facebook, which I was then asked by Shaun Prince of MJS Capital, to withdraw after threat of legal action.
    I am absolutely disgusted with this company, especially with the arrogance that they show their clients and I wouldn’t even recommend them to my worst enemy.

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  7. I’m still waiting for my redeemed investment, investors should be considering making a class action law suit against this despicable company.

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  8. Yes you can, if MJS fails to make enough money from its lending business to maintain repayments of interest and capital, and the security trust runs out of money.

    Only investors can decide at what point “late” becomes “never”.

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  9. Brev is 100% correct – The security trustee does not GUARANTEE your investment simply conducts oversight to ensure payments are made in line with the IM contract which they are not, the security trustee will not make ANY payment of coupons if MJS fail to do so. What I fail to understand is why investors have not yet contacted the FCA directly to make them aware of the evasive behaviour of Shaun Prince, payment delays, non payments, non payment of redemptions as MJS Capital plc are under legal contract to meet their obligations to investors.

    If they are unable to meet coupon payments on time (under contract) let alone meet redemption liabilities it clearly demonstrates that the company does not have the financial ability to do so – I refer to my earlier post relating to the latest set of report and accounts submitted to companies house which all can freely view. Where has investor capital been deployed and SPENT?? If you read report and accounts – clearly states that MJS Capital have fundamental ‘issues’ with their trade partner(s) and if the ‘unspecified’ issues are unresolved they will not be able to repay investors starting with coupon payments and ultimately leading to loss of total subscription capital.

    Jo Hidderley if you have been contacted by Shaun Prince directly relating to your factual update posted on Facebook with the threat of legal action I suggest to you that a company IF fit and proper and in good financial standing would not need to resort to such threatening behaviour but please be assured as your posts are factual his threats are the actions of a desperate individual.

    Ultimately investors need to now start contacting the FCA and make them aware of their journey with MJS Capital and their defaults of payments under contract as the FCA are the only government agency that have the authority to investigate, intervene and potentially SAVE the investor capital that is hopefully left. A class action will take time and comes with direct costs – the FCA have more power and is FREE. Act now before ALL capital is lost. Shaun Prince you have the ability to explain your latest report and accounts here on this forum and if any statements are incorrect you therefore have the ability to factually correct. Interestingly MJS Capital are still very happy to take new investors capital and call NEW investors back upon request….?????? Is the new investor capital actually paying the MJS Capital liabilities of existing investors?????

    Shaun Prince, the forum is awaiting your assurances and corrections if any of the above is inaccurate.

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  10. Brev can you please change this comments section so that it is easier to find for people searching for MJS reviews? you don’t see the reviews until you click on ‘make a comment’ .

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  11. @Profit Hunter

    What I fail to understand is why investors have not yet contacted the FCA directly to make them aware of the evasive behaviour of Shaun Prince, payment delays, non payments, non payment of redemptions as MJS Capital plc are under legal contract to meet their obligations to investors.

    Because this is an unregulated investment and it’s not the FCA’s problem.

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  12. Brev, quite right the investment is unregulated by the FCA on the basis that ALL investors are qualified as high net worth/sophisticated investors, however it appears reading the comments made by investors on this and other forums that most investors profiles and the amount of capital deployed into the investment are at levels well below the required trigger of £251,000.00. When entering an investment of this type investors need to be PROPERLY qualified as high net worth/sophisticated investors to meet the regulatory requirements of the FCA qualifying this investment as unregulated as all investors are of this high net worth/sophisticated profile which it appears many many are not. Therefore if an investor has been wrongly qualified as a high net worth/sophisticated investor and subsequently deployed capital into the investment then this is miss selling and correctly then falls into the regulatory capacity of the FCA who are obligated to then investigate. Ultimately the key is for investors to secure confidence that their investment is safe and the company running the bond is conducting all business properly. It appears that there are many investors who at best are receiving coupon payments late let alone redemptions so I’m simply outlining a course of action to assist as I have had 2 previous investments recently that have gone the same way which has meant I lost most of my capital. Its never a good scenario and at times as I have been there you feel helpless and so I’m suggesting ways that I have used to gain the certainty or not that capital is safe.

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  13. @lost investor, your investment isn’t lost, i think it’s just cash flow issues. They can’t just steal our money. Contact the FCA as many of us have, they ARE going to investigate the complaints , i have been assured.

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  14. Star Man – cash flow issues as you state should ring alarm bells?! Have you read their report and accounts submitted to companies house? If you read clearly states they have ‘issues’ with trading and if they cant be resolved then capital has every potential of being lost. Where has the capital been traded as IF outside of the UK then even more alarm bells should be ringing. Every time I try and ring them I can never get through so haven’t even been able to get the chance to discuss with them for simple reassurance?????

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  15. Is that the St.James address as I visited 2 months ago and conveniently ‘ nobody’ was available to meet me or even confirm when they would be able to meet??? Seems like a general reception who have zero idea??

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  16. I invested with MJS capital – a three year bond – I was encouraged to do so by another company. After a year they defaulted on the quarterly payments and I decided to redeem my bond. This was allowable to me. However, I have had nothing from them since. No payments, no redeemed bond. Phone calls from various people -from MJS? – telling me I would received my money, and a ‘payment plan’ which was to pay me back all my investment over a period of weeks. Nothing happened. I have applied to the Financial Services Ombudsman who say they cannot locate the company. I am sending them this information, if that is O.K. with all of you? I want my investment back.

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  17. Heather it’s the Financial Conduct Authority (FCA) you need to deal with, they are aware of Shawn Prince and his criminal organisation, so contact them. Ask to speak to Mr. Alderman. Also notify Action Fraud, who deal with the City of London Police. I’ll be contacting them myself this week, too.

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  18. Obviously a member of staff from MJS has been told to respond to our reviews, to try and salvage some dignity for Shaun Prince and his gang of conmen.

    MJS is taking money for bonds from people and not repaying them. Theft.

    The security trustee Solent House Ltd has since been instructed to take over the handeling of the bond interest and redemption payments, as MJS have failed. Hopefully investors will receive back their money soon.

    Shaun Prince is currently under investigation from Action Fraud (city of london police), the FCA and Trading Standards.

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  19. “Investor” provided an email address with his comment which belongs to Dan Krout, an “office assistant” at Tempus Magazine.

    Tempus Magazine has promoted MJS Capital as a “low risk” investment in the past: see https://tempusmagazine.co.uk/news/the-simplicity-of-arbitrage-investors-bruised-by-recession-could-find-these-investments-to-be-a-safe-haven and further articles via https://www.google.com/search?q=site%3Atempusmagazine.co.uk+mjs+capital.

    I suppose that makes Dan more than qualified to talk about fake news.

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  20. ‘IF’ you are running a fit and proper company then ANY suggestion that the company is not meeting its obligations to it’s clients particularly in the investment world would be met with immediate and positive action by the company to resolve to the benefit of the client and protect the reputation of the company. What I see here and on other forums (Money Saving Expert) is a tidal wave of posts from investors whom haven’t been paid by MJS Capital plc be it a coupon payment or return of their principal capital. The volume is concerning and blatantly demonstrates that MJS Capital plc has some very very serious issues.

    Surely either the FCA or SFO should now be investigating as the longer this continues the greater the potential loss to capital exists. I have seen the latest adverts from the FCA on TV where investors think they have placed their capital with a professional firm only to see the principals of the frim spending their investment on holidays, parties and cars!

    Investors need to take action so the correct authorities can investigate and properly uncover the current state of affairs and identify where investor capital is being spent?!

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  21. Thank you, Star man, I have contacted Action Fraud. I will contact the FCA now. Keep my fingers crossed, for all of us.

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  22. Apparently investors have approached the security trustee, Solent House ltd. having been told by an agent that they will be salvaging the whole debarcle; only to be told (by Solvent House) that they can’t help because they don’t have a bank account!

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  23. Indeed. I think they only route remaining is to take them to court for breach of contract now. Enough is enough.

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  24. So Shaun Prince has taken the formal step to change the name of MJS Capital plc to Colarb Capital plc at companies house?? Is this a direct, amateur and obvious attempt to try and loose/subvert ALL of the past feedback from the tidal wave of investors whom haven’t been paid coupons and redemptions??

    Be assured we all need to update forums to ensure this obvious and nefarious attempt to ‘loose’ the tail of destruction MJS Capital plc and Shaun Ponce – sorry Prince have left in the wake does not go unmissed, un-identified and lost in terms of the disgusting way he treats his investors.

    Watch this space Shaun Prince, your new Director appointed recently has a very interesting past. I will post full overview shortly. TBC

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  25. according to company’s house Colarb holdings was incorporated in December 2017 by Shun Prince? is that the one you mean?

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