FCA censures London Capital & Finance over mini-bond promotion

Regulator did not impose a financial penalty on the insolvent firm

Hope William-Smith
clock • 2 min read

Collapsed provider London Capital & Finance (LCF) has been censured by the Financial Conduct Authority (FCA) 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-...

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