London Capital and Finance

edited 1 September 2016 at 1:14PM in Savings & Investments
2.1K replies 432.7K views
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  • ColdIronColdIron Forumite
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    You bothered to create an account for that? Are you planning something?
  • masonicmasonic Forumite
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    ColdIron wrote: »
    You bothered to create an account for that? Are you planning something?
    Not sure what these nonsense posts set out to achieve (possibly just removal of 'new member' status so that they can spam the forum with links), but I always click the spam button when I see them.
  • AnotherJoeAnotherJoe Forumite
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    "Last edited by bail-in; Today at 9:58 AM. Reason: mistakes in spelling"

    How about "lack of paragraphs making the slab of text unreadable? :D

    Have a few free ones;






    HTH
  • badger09badger09 Forumite
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    bail-in wrote: »
    With the LC&F unregulated minibond unlike a stock market traded bond do not have to provide a detailed highly scrutinised prospectus for the company itself, only for the bond offer. It is unsecured not secured. No FSCS protection.

    All monies are not protected as the website states and their liabilties cancel out their assets re claim secured on LC&F assets. Very difficult to find out any evidence for their claim so far that they have lent 33 million to 150 sme.

    With such low interest rates on loans now it is an extremely competitive market.

    Re 3-8% bond interest London Capital and Finance plc do appear to be paying interest, but could it be being paid from the bondholders capital? Where is the value of having your interest paid if you lose all your unsecured capital?

    The three year track record they have? The Companies House financial return ending 2015 indicated only one loan customer and Michael Thomson, who has been around a long time, was also the director of the company the LC&F lent to.

    From one loan to one company in 2015 to 150 sme loans in 2016, from a few thousand pounds loan to 33 million? Companies dream of that kind of performance.

    The front marketing company for the bond is not part of the company. It is hard to get past them to find details of the lending to SME to raise the interest to bondholders. No evidence for loan side for raising interest for bond repayments. No website, no physical location, employees, no phone, to apply for a sme loan you have to go through the bond marketing company which does not make sense.

    Other companies related to same director, some appear to be quite profitable, many not according to Company House. The 2016 Company House return is financially much better than 2015 retun, but the bond marketing team will not give you any details of the lending side, nor internet searches come up with anything.

    According to Company House LC&F have two employees who were paid £800 each in period ending 2016, the two directors?

    LC&F is registered as a mortgage broker not a lender with FCA but if each loan amount is over a certain fixed sum they can lend without FCA permissions. LC&F have a right to company non-disclosure, unlike traded bonds, but it is in their interest to provide evidence of how they are raising funds to pay the interest to the bondholders.

    Even if a minibond offer does pay interest on the bond, as in collapsed Secured Energy Bond installing solar panels in schools it does not ensure return of capital. In Secured Energy Bond the Australian parent company illegally siphoned off the bondholders capital and went bankrupt. The bondholders lost everything. Good luck to them if it is all genuine. Remember, the interest payments on time do not mean the capital will be returned.

    The beneficiary trusts set up by minibond providers are useless, in my opinion. How would you enforce it if everything went belly-up? Minibonds are highly risky and should only be looked at by sophisticated investors who can afford to lose all their investment capital. But ordinary bank savers are investing in them because of the paltry bank interest rates. Many are disasters waiting to happen.

    No commercial lawyer would recommend investing in them. Having said that some minibond offers have been successful. But they have been offered by highly respected and popular companies with great track records. Always look at the track record, it helps.

    No point going to a IFA about minibonds. They are not interested. Just want to sell you stockmarket funds. Do your homework and if you cannot get satisfactory answers to relevant questions, that is a strong indication to walk away.

    I haven't attempted any punctuation, nor have I corrected the remaining spelling mistakes in your post.

    However, it is now possible to read it, and it really wasn't difficult to press the Return key several times. If you are going to the trouble of posting, please learn to use the Return key, otherwise your efforts are in vain:cool:
  • dunstonhdunstonh Forumite
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    No commercial lawyer would recommend investing in them.
    That is because commercial lawyers do not hold the regulatory permissions to give advice.
    No point going to a IFA about minibonds. They are not interested.Just want to sell you stockmarket funds.

    They are within the regulatory permissions should the IFA think they are suitable. However, for the vast majority of consumers, they are not.

    Why do you think that IFAs just sell stockmarket funds?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 10 June 2017 at 10:41AM
    badger09badger09 Forumite
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    edited 10 June 2017 at 10:41AM
    @ dunstonh

    Can I as if you would have replied to OP's post before editing?
  • bigadajbigadaj Forumite
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    dunstonh wrote: »
    That is because commercial lawyers do not hold the regulatory permissions to give advice.



    They are within the regulatory permissions should the IFA think they are suitable. However, for the vast majority of consumers, they are not.

    Why do you think that IFAs just sell stockmarket funds?

    Is p2p now in an ifas remit?
  • VortigernVortigern Forumite
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    bail-in wrote: »
    Huge slab of text

    tldr; Avoid LC&F. Run a mile. Your barge pole is too short.
  • edited 12 June 2017 at 4:04PM
    dunstonhdunstonh Forumite
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    edited 12 June 2017 at 4:04PM
    bigadaj wrote: »
    Is p2p now in an ifas remit?

    Yes. Nowadays, basically, everything is. However, IFAs can refuse to give advice in certain unregulated areas if they choose. Most areas, they cannot refuse. This is the main reason that so many IFAs have moved to restricted (typically the larger firms and networks where controls of staff are a priority)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 15 July 2018 at 8:03AM
    bail-inbail-in Forumite
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    edited 15 July 2018 at 8:03AM
    Ok. How about you delete your copy of my post and then I post an updated version wirh paragraphs? The updated version is post #95 and #96 below in this Original Poster daniel80 thread.
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