London Capital and Finance

Tobyjamies

Gone into Administration.

Jelli

Malthusian wrote: »

It is correct. Any FCA authorised firm can authorise financial promotions. Doesn't matter if your only authorised activity is insurance intermediation, restricted to llama farmers in Tibet named Dennis who qualify as eligible counterparties on alternate Thursdays. You can authorise any financial promotion on any type of product under the sun.

Then stick it on every webpage as a permanent fixture, making people think the entire business is above board.

"Authorised & regulated by the Financial Conduct Authority". Oh great, all info has been cleared and is truthful.

masonic

Jelli wrote: »

Then stick it on every webpage as a permanent fixture, making people think the entire business is above board.

"Authorised & regulated by the Financial Conduct Authority". Oh great, all info has been cleared and is truthful.

The real problem is not in the information that was disclosed, it's in the information that wasn't disclosed.

Uxb1

I see from the FAQ statement put out that there were "approximately 14000 people who bought these bonds" and that the "face value of the bonds issued is approximately £236m"

sully1311

Tobyjamies wrote: »

Gone into Administration.

Umm.... thanks?

Malthusian

masonic wrote: »

The real problem is not in the information that was disclosed, it's in the information that wasn't disclosed.

And, as the FCA's Second Supervisory Notice made clear, in the information that was disclosed but with insufficient prominence compared to meaningless marketing cliches about the company's 100% track record.

Reaper

Malthusian wrote: »

It is correct. Any FCA authorised firm can authorise financial promotions. Doesn't matter if your only authorised activity is insurance intermediation, restricted to llama farmers in Tibet named Dennis who qualify as eligible counterparties on alternate Thursdays. You can authorise any financial promotion on any type of product under the sun.

Many thanks for that. I have added this to my list of questions for the FCA (click here):

* Do you think it is right that a company can advertise unregulated investments directly to the public even if not authorised to do so, provided they are regulated in an unrelated area (eg authorised to do Claims Management but advertising and selling mini-bonds)

Botheredin

So, only £4m left in LC&F's accounts then...

System

If only Martin Lewis would get involved...he might be able to warn people about these ‘bad’ comparison sites , that may lure more people in. He has major credibility and I think people might hear about this sort of problem then.

digannio

Regardless of how the law stands with all of this or the morality of how misleading and unfair tactics were used to draw people in, the following from the Evening Standard must really stick in the craw of those who invested their savings:


LCF’s chief executive {text removed by MSE Forum Team} lives {text removed by MSE Forum Team}with no mortgage and spends lavishly on his passion for eventing.

He has reputedly bought another equestrian farm nearby. He has used LCF money to sponsor equestrian events and his daughter’s eventing career through the family company, GT Eventing. Locals say the family has become extremely wealthy in recent years.

{text removed by MSE Forum Team}, chief executive and owner of Surge Financial, the marketing operation which was taking commissions of 20% from LCF for selling its bonds, bought a £1.5 million helicopter in December and reputedly had a new £310,000 Aston Martin delivered in the same month, adding to his black Ferrari reputedly delivered in the summer.