London Capital & Finance went into administration in March 2019 after the FCA froze its activities due to mis-leading, unfair and unclear communications in regards to a “Fixed Rate ISA”.
This ISA promised an 8% return from secure ISAs, and was marketed across the internet using online adverts. Investors put a combined £236m into London & Capital Finance before the FCA had realised the firm was mis-leading individuals.
London Capital & Finance was authorised by the Financial Conduct Authority (FCA), however the FCA stated this was in relation to providing consumer advice, not the sale of bonds or ISAs.
Not only were investors told they would receive 8% returns on their “secure” ISA, they were also informed that their funds – and therefore their risk – would be spread across hundreds of companies. However, according to Companies House, LCF loaned money to just 12 companies:
- Four of these companies had never filed accounts
- Nine of these companies were fewer than three years old
- Nine of these companies had loans from LCF in 2017
In addition to this, the owner of LCF, Andy Thomson, was a shareholder in one of its client companies until shortly before a loan from LCF was agreed.
Have you been affected by the London Capital & Finance mis-selling?
At Smooth Commercial Law, our team of solicitors have extensive experience in dealing with a whole manner of claims that arise from negligent and/or unsuitable financial advice. We are seeing an increase in claims for mis-sold pensions, and have managed to secure compensation for many of our clients.
Should you have a claim, we can deal with your case and look to recover compensation for not just your loss of investment but also any adverse tax liabilities that you may now be facing as well.
You can contact our experienced team by calling the number at the top of this page or by emailing info@smoothcl.co.uk.