London Capital and Finance

masonic

Jelli wrote: »

I've been removed from that positive Facebook group for some reason. My posts were no different to what I've done here on MSE.

That probably speaks volumes about the sort of group it is.

billyolly

Apparently someone from a Facebook group has reported LCF to the fraud squad and they have appointed someone to investigate,not sure how this will run?

Malthusian

Jelli wrote: »

I've been removed from that positive Facebook group for some reason. My posts were no different to what I've done here on MSE.

I got banned after joining under my real name and I didn't even criticise LCF directly. My guess is that an admin looked at my profile.

I don't necessarily go with the conspiracy theory that the Bondholders group (as opposed to the Action Group) is run by LCF itself, as it is plausible that the people run it are merely in a state of denial.

That said, it sprung up suspiciously quickly after the accounts were frozen. Given interest payments are monthly, existing investors have no particular reason to monitor the website and the letters had to go in the Christmas post, whoever started it reacted very quickly to the asset freeze.

And the general attitude of "Everything is fine, they're only investigating the adverts" does not seem compatible with "Oh !!!!, the FCA are investigating, I'd better start a Facebook group for bondholders right now".

I can't check the date the group was started as I'm banned, so this line of thought may not have legs.

bxboards

I can't see how this can be FSCS protected for a couple of reasons:

1) The marketing clearly indicated no such protection
2) Extending protection for this on an ad hoc basic would set a terrible precedent - it would allow people to invest recklessly knowing there is a bail-out. I know it's almost fashionable nowadays not to take any personal responsibility but I think a line has to be drawn.

Anyone expecting or hoping for FSCS protection is likely to be disappointed.

masonic

I was thinking along the lines that the bondholders facebook group is just a place like minded people could go to bury their head in the sand and that anyone who would make them nervous is unwelcome.

verybigchris

I shudder to think what advertising is being targetted at members of a Facebook group full of LC&F investors in denial.

jimjames

verybigchris wrote: »

I shudder to think what advertising is being targetted at members of a Facebook group full of LC&F investors in denial.

One person did post that they'd seen an advert for Student accommodation paying a guaranteed 9% interest as an unregulated investment. They seemed oblivious to the fact that they were on a group where they were worried about losing their money in something very similar.

I think this whole setup does show that there needs to be more done about how unregulated products are sold

billyolly wrote: »

Apparently someone from a Facebook group has reported LCF to the fraud squad and they have appointed someone to investigate,not sure how this will run?

I can't see how the fraud squad can be involved from an investor as there is no confirmation of any fraud yet. If any evidence is found I would expect FCA to do that or to lead the investigation themselves

Malthusian

bxboards wrote: »

2) Extending protection for this on an ad hoc basic would set a terrible precedent - it would allow people to invest recklessly knowing there is a bail-out.

The precedent has already been set. See Independent Portfolio Managers et al.

System

Oh this is a terrible, complicated business....will the other similar bonds that come up on the best bond websites go the same way do you think?

.

jimjames

Poorlyone wrote: »

Oh this is a terrible, complicated business....will the other similar bonds that come up on the best bond websites go the same way do you think?

If they're unregulated then yes there is every chance you could lose all your money. Don't buy unregulated products if you want safety and your money guaranteed