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  • FIRST POST
    • daniel80
    • By daniel80 22nd Oct 15, 6:31 PM
    • 230Posts
    • 48Thanks
    daniel80
    London Capital and Finance
    • #1
    • 22nd Oct 15, 6:31 PM
    London Capital and Finance 22nd Oct 15 at 6:31 PM
    Anyone had any dealing with this company. My son has 25k to invest for only 2 years as it will be a house deposit. Iv`e told him to stay away from the stock market as 2 years is not long enough. As he is not overly keen with saving accounts cash isa`s etc due to low interest rates I said what about premium bonds a gamble on winning but stake is safe only loss would be inflation. When I googled investment ideas a link came up who were called specialist investment ideas with free advice. I put in my details..I received a call about half an hour later the guy recommended the above company which was based in Mayfair. he sounded very posh. He said London Capital and Finance were offering bonds paying 8% the money being lent to various companies to a maximum of 60% of their assist. He seems more of a salesman than an advisor and wants to phone back Monday. Brochure looks ok online but something does not seem right. Anyone dealt with these.

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    Last edited by MSE Andrea; 01-09-2016 at 2:14 PM.
Page 4
    • bowlhead99
    • By bowlhead99 16th Oct 16, 2:20 PM
    • 5,146 Posts
    • 9,076 Thanks
    bowlhead99
    Steve: saw your posts earlier this year. Curious to know your position on LC&F now?
    Originally posted by goldenmagpie
    The LC&F offering has not changed substantially, remaining unsuitable for savers or mainstream investors. It is a specialist offering for sophisticated, high net worth or restricted investors (FCA definitions).
    They are member of FCA reg no 722603 - whatever that means. I am trying to keep safe, savings for personal health care in future as I have life-quality-reducing and life-limiting condition
    It means that they are licensed for secondary credit broking, which is far removed from the regulated activities which would be useful to you, such as taking customer deposits. Their investment options involve potential 100% loss of capital without any FSCS protection.

    Would you qualify as a sophisticated or high net worth investor? Like, you have income over £100k a year, net assets of over £250k excluding your home and value under insurance or pension contracts, or you work in private equity, or as a director of a company turning over £1m+ and have made multiple investments in unlisted companies in the last couple of years. Or you always invest under 10% of you money in things that can't be easily cashed in (restricted investor).

    Given your goal of keeping your money safe over a limited lifespan, it seems like investing in bonds which offer 100% loss potential would seem unwise. Did you read all the other posts in the thread from experienced and longstanding forum members? If not, do that.
    • dunstonh
    • By dunstonh 16th Oct 16, 5:41 PM
    • 85,148 Posts
    • 50,158 Thanks
    dunstonh
    They are member of FCA reg no 722603 - whatever that means.
    It means very little if the product being sold is not a regulated retail packaged product.

    I am trying to keep safe, savings for personal health care in future as I have life-quality-reducing and life-limiting condition.
    So, what they offer is totally unsuitable for you.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Sledger
    • By Sledger 14th Nov 16, 1:52 PM
    • 2 Posts
    • 0 Thanks
    Sledger
    existing LCF investor
    A previous comment made here states that LCF record on interest for the last 3 years is sound. I have just received my due interest and assuming this trend continues, after 3 years I will have received 24% back in interest l(less tax) reducing a 100% capital risk loss as stated elsewhere on this forum.. Assuming typical interests earned elsewhere are 1%+ compared to LCF 8% were frozen, and LCF continued in business, the break even risk free point to recoup my capital is about 15-16 years (Ignoring Interest compounding and after Tax) . its then interest $$$$$$$ plain sailing from there on with the " secured" capital being returned as a bonus. Any legitimate business wants to succeed and grow and the fundamentals . of matching lenders with investors. and get a operating margin seems sound. and LCF appear to be growing as per their expectations. The hard bit to accept here is our conditioning to anybody offering high interest way above the norm sets up alarm bells and caution. I am remaining positive with LCF and have taken that risk
    • dunstonh
    • By dunstonh 14th Nov 16, 3:03 PM
    • 85,148 Posts
    • 50,158 Thanks
    dunstonh
    A previous comment made here states that LCF record on interest for the last 3 years is sound. I have just received my due interest and assuming this trend continues, after 3 years I will have received 24% back in interest l(less tax) reducing a 100% capital risk loss as stated elsewhere on this forum.. Assuming typical interests earned elsewhere are 1%+ compared to LCF 8% were frozen, and LCF continued in business, the break even risk free point to recoup my capital is about 15-16 years (Ignoring Interest compounding and after Tax) . its then interest $$$$$$$ plain sailing from there on with the " secured" capital being returned as a bonus. Any legitimate business wants to succeed and grow and the fundamentals . of matching lenders with investors. and get a operating margin seems sound. and LCF appear to be growing as per their expectations. The hard bit to accept here is our conditioning to anybody offering high interest way above the norm sets up alarm bells and caution. I am remaining positive with LCF and have taken that risk
    Originally posted by Sledger
    If legitimate, why do they market unregulated 100% capital at loss investments in a style that is designed to confuse savers looking for fixed term deposits?

    Interest rates on risk based investments generally reflect the risk of default when compared to risk free assets.

    It is fine that you are happy with a 100% loss based unregulated investment. You know that you could lose the lot and if and when that happens (as has happened with similar companies taking such an approach) then you can afford to lose it as nobody would put a lot of money in this sort of thing. General guidance is no more than 5% of your investable assets. Losing 5% wont hurt much.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • bigadaj
    • By bigadaj 14th Nov 16, 6:24 PM
    • 7,861 Posts
    • 4,796 Thanks
    bigadaj
    A previous comment made here states that LCF record on interest for the last 3 years is sound. I have just received my due interest and assuming this trend continues, after 3 years I will have received 24% back in interest l(less tax) reducing a 100% capital risk loss as stated elsewhere on this forum.. Assuming typical interests earned elsewhere are 1%+ compared to LCF 8% were frozen, and LCF continued in business, the break even risk free point to recoup my capital is about 15-16 years (Ignoring Interest compounding and after Tax) . its then interest $$$$$$$ plain sailing from there on with the " secured" capital being returned as a bonus. Any legitimate business wants to succeed and grow and the fundamentals . of matching lenders with investors. and get a operating margin seems sound. and LCF appear to be growing as per their expectations. The hard bit to accept here is our conditioning to anybody offering high interest way above the norm sets up alarm bells and caution. I am remaining positive with LCF and have taken that risk
    Originally posted by Sledger
    The problem is that the return isn't that great for the risk you are taking on.

    You compare this with p2p in your other post, but I'm invested in a number of p2p loans across three platforms it's returns of 10-14%, all of which is secured on property, assets, cars, pawned items etc.
    • jimjames
    • By jimjames 14th Nov 16, 8:54 PM
    • 10,851 Posts
    • 8,919 Thanks
    jimjames
    A previous comment made here states that LCF record on interest for the last 3 years is sound. I have just received my due interest and assuming this trend continues, after 3 years I will have received 24% back in interest l(less tax) reducing a 100% capital risk loss as stated elsewhere on this forum.. I am remaining positive with LCF and have taken that risk
    Originally posted by Sledger
    You seem to be missing one critical word - namely IF. Have a read of the other similar "investments" on the forum, and you might change your mind about the chances of getting back even 24% of your investment.

    It's always positive until you find you can no longer contact them and have not received any money back.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • zeero
    • By zeero 24th Nov 16, 9:32 PM
    • 5 Posts
    • 0 Thanks
    zeero
    Is the company really a PLC ?

    Financial information on the company available on line for past year:
    London Capital & Finance Plc
    The Old Coach House Eridge Park, Eridge Green, Tunbridge Wells, Kent TN3 9JS,
    Status ACTIVE
    Type Other
    Cash £8
    Total Assets £1,252,404
    Liabilities £-695,006
    Net Worth £40,944
    • eskbanker
    • By eskbanker 25th Nov 16, 12:09 AM
    • 3,647 Posts
    • 3,266 Thanks
    eskbanker
    Answered on the other thread at http://forums.moneysavingexpert.com/showthread.php?p=71665855#post71665855
    • zeero
    • By zeero 25th Nov 16, 12:24 AM
    • 5 Posts
    • 0 Thanks
    zeero
    thank you ..
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