London Capital and Finance

Botheredin

jimjames wrote: »

I agree. It's sad that so many novice savers have been caught by this outfit. It's also surprising at the level of denial that anything is wrong and that it's all the fault of the FCA.

LCF have lied about the product being an ISA ( definitely agree but also led there by a cunning marketing play))
LCF have lied about FCA protection (Agree)
LCF have lied about the risks involved (It was in very small, nay, tiny print)
LCF have lied about the level of security (As above and unclear)
LCF have misled investors about the requirement to be high net worth etc. (Totally agree)

Out of these items the one that many investors seem to be focused on is item 1 which is not massively serious in my view and could just mean tax being payable on interest. (Definitely on the money!)

The most serious ones are the other 4 items which don't appear to bother many people. To me these are the real issues where people have put their life savings into something that is high risk and could lose all their money even if it's not fraudulent and a lot of bondholders still seem unaware of the risk they have taken.

Views copied in line

Botheredin

londoninvestor wrote: »

And:
LCF directors have chosen borrowers based on their own interests in the borrowing companies, not their ability to repay

Can you expand?

Catrina777

How have lcf lied about FCA protection
I blame the word conduct for misleading us
It also turns out they can be regulated for some things but not others which some of us didn't know the details of

londoninvestor

Botheredin wrote: »

Can you expand?

A good summary here:
https://damn-lies-and-statistics.blogspot.com/2019/01/london-capital-finance-scam-tangled-web.html

And plenty of more detailed analysis on pages 22-25 of this thread.

Botheredin

Yep, read that and more that isn't necessarily in the open yet. Fairly clear what's going on

billyolly

At the age of 67 I recently joined Facebook because I am a LCF bond holder.I am finding more useful information on this site than either of the 2 Facebook groups I have joined ,keep up the good work.

jimjames

Catrina777 wrote: »

How have lcf lied about FCA protection
I blame the word conduct for misleading us
It also turns out they can be regulated for some things but not others which some of us didn't know the details of

It's not just my opinion, it's something that the FCA have made judgement on and LCF have agreed. So I don't think it's really in dispute

https://damn-lies-and-statistics.blogspot.com/2019/01/why-was-fca-action-taken-against-london.html

billyolly

Just read LCF has gone into administration

Botheredin

billyolly wrote: »

Just read LCF has gone into administration

Where did you read that?

rr755507

Botheredin wrote: »

Where did you read that?

Confirmed by LCF
Admin notice
https://www.londoncapitalandfinance.co.uk/noa.pdf
FAQ
https://www.londoncapitalandfinance.co.uk/faqs.pdf

From the FAQ

"LCF filed its application for an administration order on 30 January 2019 because it had become insolvent. There were several factors which have contributed to the insolvency:

1. The FCA have determined that “the manner in which LCF was promoting its bonds was misleading, not fair and unclear” – for further detail see in the FCA’s Notice dated 17 January 2019 published on the FCA’s website. Here is the link to the Notice:
https://www.fca.org.uk/publication/supervisory-notices/second-supervisory-notice-london-capital-and-finance-plc-2019.pdf

2. In light of this on 10 December 2018 the FCA deemed it necessary to require LCF to immediately withdraw its financial promotions in relation to the bonds. In order to further protect investors, on 13 December 2018 the FCA imposed certain requirements on LCF including (a) not to dispose of or deal with its assets, save in limited circumstances (b) to cease conducting all regulated activity and (c) not to communicate any financial promotions. These requirements were imposed pursuant to a voluntary application by LCF. The requirement in relation to LCF’s assets was subsequently amended on 18 December to further restrict LCF from dealing in any way with its bank accounts without the prior approval of the FCA.

3. As a result of the above, LCF has been unable to raise further monies from investors.

4. Professional advice was sought and the Company was advised that LCF was insolvent and that it should be placed into administration to provide the best outcome for Bondholders and other creditors. The Company was also advised that in order for some independent party to be able to deal with the Company’s assets for the benefit of the Bondholders and the other creditors that the directors should place the Company into Administration such that the Administrators could perform those essential functions. As LCF is an FCA regulated firm, the consent of the FCA is required for the directors of LCF to resolve to place the Company into administration. Accordingly, the consent of the FCA was duly sought and obtained.

Here is a link to the FCA’s website as regards LCF. https://www.fca.org.uk/news/news-stories/information-london-capital-and-finance-plc-investors "