Tim Sargisson: How LCF highlights the real need for financial advice

The collapse of London Capital & Finance (LCF) has the potential to leave 11,500 investors out-of-pocket to the tune of £236m. The unravelling financial disaster is a well-trodden path in that the firm was regulated by the Financial Conduct Authority (FCA) but the mini-bonds, promoted by the firm, remain unregulated investments. In other words we are back to the familiar conundrum that a company can be regulated by the FCA but still sell unregulated products that offer the public little protection in the event of a failure. The City watchdog has been ordered by the government to begin...