8% Isa

PRAISETHESUN

In plain view on their website.... "Please note that the bonds and ISAs are not authorised by the Financial Conduct Authority and not protected by the Financial Services Compensation Scheme. Refer to the section on Security to see how our protection works"

Stay away...

Alexland

fiisch wrote: »

Last time I posted on a similar thread expressing my opinion, I got a message from the moderators threatening I could be subject to legal action.

It would be helpful if MSE would publish an official warning for these types of accounts that was sensitivity worded to avoid legal consequences while also making it very clear the high risks that investors are taking with such products and that better risk adjusted returns are available elsewhere such as S&S mixed asset funds. We could then just reply giving the hyperlink to the warning.

I still don't understand how these companies are allowed to advertise so broadly when the rules require they only sell to sophisticated investors.

Alex

doe808

PRAISETHESUN wrote: »

In plain view on their website.... "Please note that the bonds and ISAs are not authorised by the Financial Conduct Authority and not protected by the Financial Services Compensation Scheme. Refer to the section on Security to see how our protection works"

Stay away...

No idea why anyone even touch this, on that basis.

Westie983

Hi and welcome to MSE,

It normally helps if you use the search bar to see if your question has already been answered and if there is a thread already started about your query.

Here are a selection of threads found when searching for London Capital.

https://forums.moneysavingexpert.com/discussion/5851638/8-isa-with-london-capital-and-finance-plc&highlight=london+capital

https://forums.moneysavingexpert.com/discussion/5381214/8-fixed-rate-3-years-is-this-real&highlight=london+capital

https://forums.moneysavingexpert.com/discussion/5821000/legit-8-fixed-isa-with-lcf&highlight=london+capital

As others have if the rate seems too good to be true, then its more then likely that is the case. This particular company is not covered by FSCS, along with the high offered rate in comparison to the market rates on offer.

Hopefully you will find the search bar and the rest of the forum useful

Westie983

AnotherJoe

Paul_DNAP wrote: »

PS. Why is it always new members using their first (and only) post to ask about this account?

Because regular posters will be able to search and find the answer, (if they didn't know it already just from browsing the forums)
People who don't spend a lot of time on forums and have a specific question, will therefore form the largest group of people asking this question. And its a subset of those, since some will read the warnings posted on the website and not proceed (or may still proceed).
So you are left with those who dont frequent forums, who didnt read the disclaimers/warnings or didnt understand them And since they get the answer they require they have no further need to post here (as they didn't need to post here before their question either). So, it's not surprising at all, indeed you'd expect it.
For every one person posting this question there are likely many more going ahead and buying what they think is a traditional savings bond just at a very good rate of return, unaware of the risks they run. I suppose there must also be some going ahead despite seeing and understanding (or not) the risk warnings just like anyone investing in the markets although of course most investing in these products likely dont think they are investing in the markets but instead have bought something more akin to a building society savings account.

Malthusian

Alexland wrote: »

I still don't understand how these companies are allowed to advertise so broadly when the rules require they only sell to sophisticated investors.

They aren't. London Capital & Finance outsources its advertising to unregulated introducers. These unregulated introducers issue financial promotions which induce people to invest in London Capital & Finance bonds. Anyone issuing financial promotions who is not regulated by the FCA is breaking the law and can be imprisoned for up to two years and fined. The FCA couldn't give less of a crap.

dealer_wins

If an "investment" is offering way above normal interest rates it will usually be one or more of the following.

Very high risk, unregulated, not covered by the FSCS scheme, run by dubious directors, a scam.

BigIain

Paul_DNAP wrote: »

PS. Why is it always new members using their first (and only) post to ask about this account?

As a new member I joined the forum to ask about LC&F as I was thinking of investing but wanted advice other than from their own website.
I appreciate this type of investment has its risks but keen to know independently just how risky.
Everyone has to have their first post. There's not always something underhand!
Some of us just don't have the financial experience that some of the regular posters do . . . So we need guidance.

AnotherJoe

FWIW if you go to the LC&F website now it says this
The Financial Conduct Authority has directed London Capital & Finance plc to withdraw all of its existing marketing materials in relation to LCF’s Fixed Rate ISA or Bond.

And clicking on all (all AFAICS) links on its home web page take you back to that same single page with that statement.

Seems FCA has finally woken up to its responsibilities.

DrSyn

My quick & simple rule of thumb, with interest rates as they are now :-

With FTSE dividend about 4%

Best avoid when above, 1.25 x 4% = 5%

Never invest at, 2 x 4% = 8%