FCA Censures London Capital & Finance Over Mini-bond Promotion

Collapsed provider London Capital & Finance has been censured by the Financial Conduct Authority for misleading and unfair promotions of mini-bonds.

The watchdog today (11 October) said it had opted for a censure, as it was inappropriate to impose a financial penalty on an insolvent firm. LCF is also in administration, meaning a penalty would divert funds away from being used for the benefit of bondholder creditors. About 11,000 investors lost a total of £237m in LCF's mini-bond scheme between 2014 and 2019 - a situation which saw the FCA face significant criticism in an independent investigation. Financial promotions were used to market mini-bonds to retail investors, which the FCA said "presented a misleading picture of the mini...

To continue reading this article...

Join Investment Week for free

Signup and gain exclusive members-only insights - all free of charge!

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week

member?

Login

RECENT NEWS

What A Rising VIX Means For Pension Funds

Wall Street’s latest selloff has moved beyond a technology-sector wobble and become a broad market event. The Nasdaq C... Read more

Behaviour Cannot Fix A Portfolio Construction Flaw

A Retiree Shouldn't Be Asked to Behave Their Way Out of a Portfolio Construction Problem Why behavioural coaching shoul... Read more

Behavioural & Retirement Portfolio Resilience

Behavioural Survivability and Retirement Portfolio Resilience Why the lived experience of market recovery matters as mu... Read more

Australia's Rate Rise Bites: Highest In 15 Years

The Reserve Bank of Australia has lifted interest rates to their highest level since 2011, and its governor admits the w... Read more

October Retirement Portfolio Resilience Assessment

Markets stabl Read more

Gyrostat September Retirement Portfolio Resilience Assessment

September Retirement Portfolio Resilience Assessment Markets have fallen. The price of risk has risen. ... Read more