London Capital and Finance

eskbanker

Jelli wrote: »

People didn't have to tick to say they were a sophisticated investor. I like a lot of people declared ourselves as 'restricted investor' because we weren't high net worth OR sophisticated.

'Restricted investor' is basically confirming that you're not putting more than 10% of your net assets into schemes like these, as defined at 4.7.10 of https://www.handbook.fca.org.uk/handbook/COBS/4/7.html:

“RESTRICTED INVESTOR STATEMENT

I make this statement so that I can receive promotional communications relating to non-readily realisable securities as a restricted investor. I declare that I qualify as a restricted investor because:

(a) in the twelve months preceding the date below, I have not invested more than 10% of my net assets in non-readily realisable securities; and

(b) I undertake that in the twelve months following the date below, I will not invest more than 10% of my net assets in non-readily realisable securities.

Net assets for these purposes do not include:

(a) the property which is my primary residence or any money raised through a loan secured on that property;

(b) any rights of mine under a qualifying contract of insurance; or

(c) any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be entitled; or

(d) any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-readily realisable securities.

Signature:

Date:”

Essentially this is intended to avoid the scenario where someone ploughs significant chunks of their life savings into such schemes, by ensuring that the investor formally declares that they're not overexposing themselves to unnecessary risk....

System

Jelli wrote: »

People didn't have to tick to say they were a sophisticated investor. I like a lot of people declared ourselves as 'restricted investor' because we weren't high net worth OR sophisticated.

Sorry jelli, no aspersions cast-i thought it was the same as the blackmore one. Wonder when that will go pop?

Botheredin

eskbanker wrote: »

'Restricted investor' is basically confirming that you're not putting more than 10% of your net assets into schemes like these, as defined at 4.7.10 of https://www.handbook.fca.org.uk/handbook/COBS/4/7.html:Essentially this is intended to avoid the scenario where someone ploughs significant chunks of their life savings into such schemes, by ensuring that the investor formally declares that they're not overexposing themselves to unnecessary risk....

How well was it called it with LCF and how well is it called out with other funds like Blackmore etc?

verybigchris

Just curious: are FCA regulated firms prevented from up-selling to existing "restricted investors"? I could imagine someone getting a foot in the door with an initial 10% of their net worth, then gradually getting hit up for more and more investments.

eskbanker

Botheredin wrote: »

How well was it called it with LCF and how well is it called out with other funds like Blackmore etc?

While most of the content of the LC&F site has obviously been wiped, the subject of investors self-certifying their restricted status (i.e. investing less than 10%) was discussed nearly three years ago at the start of this thread (post #15) so it's reasonable to assume that there was info on the site about it at that stage.

A quick look at Blackmore's site doesn't uncover any explicit mention of investor self-certification until going through a (dummy!) application process, at which stage the putative investor has to declare themselves restricted via (something very close to) the above FCA-compliant wording, or alternatively high net worth, sophisticated, etc.

Botheredin

eskbanker wrote: »

While most of the content of the LC&F site has obviously been wiped, the subject of investors self-certifying their restricted status (i.e. investing less than 10%) was discussed nearly three years ago at the start of this thread (post #15) so it's reasonable to assume that there was info on the site about it at that stage.

A quick look at Blackmore's site doesn't uncover any explicit mention of investor self-certification until going through a (dummy!) application process, at which stage the putative investor has to declare themselves restricted via (something very close to) the above FCA-compliant wording, or alternatively high net worth, sophisticated, etc.

Thanks. So have they covered themselves?

eskbanker

Botheredin wrote: »

Thanks. So have they covered themselves?

To my mind they've included the relevant wording to ensure that investors have to certify that they fall into one of the prescribed categories, as required by the FCA, but whether they've done so prominently enough is perhaps a debatable point.

I'm not aware of the FCA specifically pursuing LC&F for lack of small print once on their site (as opposed to the marketing that drives people there), but the effectiveness of this sort of control is obviously highly questionable, if people are still happy to click past such declarations without actually reading what they're signing up to....

Catrina777

I seem to remember being sent a form with crosses as to where I had to sign.

System

The most fascinating thing for me was {text removed by MSE Forum Team} post re how this plan all worked and where the money went .He seemed to be saying as i read it, contrary to some others, that the introducers DID indeed take a cut before the money was ‘invested’. Not sure whether that is permissable or not.

He also really seemed to know who to go to at the fca, and about criminal charges etc.
Imthought it was interesting how he knew the characters involved, and kind of him to share this knowledge.

Sledger

can anybody clarify why {text removed by MSE Forum Team} became a director of this Company

He joined with fellow Buss Morton lawyer {text removed by MSE Forum Team} as Directors at conception on 22 Dec 97 both resigned one month later 21 Jan 98 "Crow Corner Residents Association PLC " with 16 people mostly Directors only 2 in {text removed by MSE Forum Team} but registered in {text removed by MSE Forum Team} with extensive filing history and in particular loads of endless legal jargon signed in advance on 12 Dec 1997


22 Dec 1997 Incorporation 38 Pages..
26 Jan 1998 Memorandum and Articles of Association 29 pages


I would really like to thank all you guys for you input on this forum and just wish I had seen this . Surely we can take the FCA to task over this https://www.standard.co.uk/business/watchdog-was-warned-early-on-highrisk-lender-a4059191.html