London Capital and Finance Plc appointed administrators on 30-01-19. The Administrators’ job is to act in the best interests of the creditors of the company (the people who the company owes money to).
The directors of London Capital and Finance have confirmed that the company is insolvent.
London Capital and Finance had been marketing for and issuing “mini bonds”.
Small businesses wanting to raise money issue mini bonds in return for money invested. The bonds often have favourable interest rates but they are generally seen as higher risk.
Issuing mini bonds is not a “regulated activity” so firms issuing them do not have to be authorised by the Financial Conduct Authority.
However, promoting mini bonds is regulated and such promotion has to be “fair, clear and not misleading.”
One of the things the FCA were unhappy about was the marketing of the mini bonds as being ISA eligible when they were not.
As the issuing of mini bonds is not authorised you will not be able to claim from the Financial Services Compensation Fund (FSCS) but if you have been missold the mini bonds because of misleading advertising you may still be able to claim against the FSCS.
Call Nick on 01925 759 510 for advice.