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London Capital and Finance

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  • bail-in
    bail-in Posts: 169 Forumite
    Third Anniversary 100 Posts
    Principles are not laws of the land. Rules are not laws of the land. That is, from the UK legal perspective, only UK laws can be enforced by the UK legal systems. The FCA Principles in the Handbook are considered as guidelines for good practice for FCA authorised businesses, but there is no legal obligation to put them into practice, nor any legal redress if authorised businesses do not honour the Handbook Principles.
  • masonic
    masonic Posts: 27,248 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 January 2020 at 4:17PM
    bail-in wrote: »
    Principles are not laws of the land. Rules are not laws of the land. That is, from the UK legal perspective, only UK laws can be enforced by the UK legal systems. The FCA Principles in the Handbook are considered as guidelines for good practice for FCA authorised businesses, but there is no legal obligation to put them into practice, nor any legal redress if authorised businesses do not honour the Handbook Principles.
    A decision by a Financial Ombudsman is legally enforceable. The FOS is required to take into account principles and rules laid down by the regulator. So there is legal redress available, stemming from those principles and rules, providing there is a case to answer.
  • bail-in
    bail-in Posts: 169 Forumite
    Third Anniversary 100 Posts
    The following article helps to understand corporate debt funding and it's rapid growth since 2010.

    Corporate debt is at record levels – here’s what the risks are | MoneyWeek
    https://moneyweek.com/519036/corporate-debt-is-at-record-levels-heres-what-the-risks-are
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    bail-in wrote: »
    The following article helps to understand corporate debt funding and it's rapid growth since 2010.

    Corporate debt is at record levels – here’s what the risks are | MoneyWeek
    https://moneyweek.com/519036/corporate-debt-is-at-record-levels-heres-what-the-risks-are
    Pretty standard moneyweek conclusion to a bearish article (they print both bearish and bullish articles each month so that they can always say they told you so whatever happens and however long it takes to happen):
    When the next recession comes we'll probably see more companies go bust. And the amount of money that can be salvaged from the carcasses of said companies, will be lower than ever before.

    Their standard action plan: what can you do about it?

    - don't panic, look out for warning signs

    - be aware of how much debt the companies you own have

    - own a bit of gold

    These gloriously insightful articles from Moneyweek are no doubt well worth their price (i.e. free to the end user, subsidised by advertisers and subscribers to their "share tips and advice"). If only LCF investors had read them they would be well informed about global macroeconomics and well-equipped to avoid products from charlatans such as LCF... I'm sure that's the theory.

    Ironically the kind of people who think their doom-mongering Moneyweek subscription is well worth the '12 issues for £12' are probably the kind of people who think that they should look for the safety of a fixed rate ISA which has a 'guarantee' from a security trustee and some sort of FCA approval, without looking at the fine print.
  • Sledger
    Sledger Posts: 189 Forumite
    Eighth Anniversary 100 Posts Name Dropper
    That may not be the case that Surge never handled the incoming funds.. Surge were the sole team fronting up as LCF staff on e mail sign offs and sporting LCF Business cards where LCF had only 2 staff according to audited accounts.
    Scottallen was a Surge employee and here is a typical  e mail confirmation of funds
    "Please accept this email as confirmation that "WE" are in receipt of your investment funds of ££££ Subject to compliance and verification checks your funds will be allocated to your account. If we require any further information at this stage, we will contact you. Once the checks are complete, you will receive email confirmation and your bond certificate will be issued.

     Kind regards,

    Scott Allen
    Account Manager 
    Freephone: 0800 410 1155
    Email: 
    s.allen@lcaf.co.uk

    A question put to LCF (SURGE). in 2016

    Q).Why are the benefits of using these 2 bodies  as a buffer rather than receive the funds direct.

    A SURGE e mail response basically confirming  they were not handling funds.

    A). We receive hundreds of applications each week, to help with the huge amount of work the company made a decision to outsource the administration of funds to a third party. GCEN/GCS are an FCA approved custodian and offer a first class service in relation to compliance and protection of client capital.

    HOWEVER, this practice was not followed on all later incoming Funds as Bondholders have revealed many were asked by LCF (SURGE) to pay into a variety of different  Bank accounts and at least 2 were instructed to pay Direct to Buss Morton the LCF lawyers where Sludgewick acting as GST had previously worked.    SURGES  claim they did not handle the money is flawed as they were active on the receipt of funds and directed where the money was to be deposited. For money laundering purposes, we have moved on from the days where Bondholders would physically hand over boxes of Cash for SURGE to count and Handle then physically deposit it   where???

  • jimjames
    jimjames Posts: 18,675 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Sledger said:
    That may not be the case that Surge never handled the incoming funds.. Surge were the sole team fronting up as LCF staff on e mail sign offs and sporting LCF Business cards where LCF had only 2 staff according to audited accounts.

    It's a shame when many of the risks were there to see and forum regulars pointless out these risks yet they were ignored because people "were positive about LCF and taking that risk". The outright scam wasn't known but a company using another company to handle their contact centre isn't unusual - many organisations do this even NHS for test and trace.
    https://forums.moneysavingexpert.com/discussion/5346049/london-capital-and-finance/p7
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Aretnap
    Aretnap Posts: 5,758 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The post-mortem continues
    "The City regulator failed to "effectively supervise and regulate" London Capital and Finance (LCF) which collapsed with losses for investors.
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