Thoughts on Finance, Current Affairs and General Consumer Ripoffs - Damn Lies and Statistics

It's reported that Blackmore Bond have failed to make another payment of interest to their investors following on from the failure to pay the due coupon in October. This also follows delayed payments earlier in 2019. Does this mean that they are getting close to going bust? It may be significant that they have been unable or unwilling to raise new capital from investors since LCF went into administration and their previous accounts raised lack of new money as a material factor in their existence. Blackmore Bond on the Brink? They have also failed to submit their accounts on time and have now missed the Companies House deadline for submission so it tends to suggest that they are now not bothered about the consequences and may just be biding their time until they declare or are forced into administration. Of course these may be entirely unconnected issues, payments may start flowing again imminently and investors will happily walk away with their capital intact despite the ...

How to Avoid Investment Scams Situations such as the collapse of LC&F highlight the importance of choosing the right investments in the first place. This list was provided by an investment site suggesting some of the key steps you should take when considering any investment. I believe the list is highly misleading and could easily catch out unwary investors or those who simply don't understand the intricacies of the financial regulation system. Check it's Authorised - Look on the FCA's register to check the business is actually authorised to conduct financial services businesses. Do an internet search for reviews of the company to find out more about what its customers are saying about it too . My comment: This is sensible advice up to a point. LCF was listed on the FCA register but the mini bonds it sold were not protected so investors would be left thinking they were covered when they are not. Understand the Risks - Be certain what the product is and where your mone...

On 23rd January 2020 a bondholder meeting took place in London where evidence was heard for the Investigation into London Capital & Finance by Dame Elizabeth Gloster giving bondholders the opportunity to provide their experiences of their interactions with FCA. The investigation is specifically into the role of the FCA in the regulation of LCF. The meeting was live streamed and lasted approximately 3 hours. A large number of investors were able to give their evidence to the team and many repeated a lot of familiar points. Quite a few people did seem slightly confused about the role of the enquiry and were posing questions that were outside the scope of the review and expecting answers there and then. There were some very well reasoned points and a few specific issues raised that are worth highlighting. You can view and listen to the full event on the investigation website here LCF only failed due to FCA Action in Dec 2018 There are some investors (or possibly stooges) who ...

What did FCA actually do for authorising and regulating LCF for lending? FCA have been very clear that LCF was not regulated for investments or savings so no compensation was payable to investors who have lost money when LCF collapsed in 2019. However they have been far less clear about what they DID actually regulate LCF for. According to the FCA register LCF were authorised for the following activity " The firm must not conduct designated investment business other than corporate finance business."  Yet the entry on the FCA website is STILL very unclear - according to the screenshot above from Jan 2020 their current status is "Fully Authorised". How are investors meant to know the difference? https://www.fca.org.uk/firms/authorisation/how-to-apply/financial-services Even if we accept that FCA have no regulatory requirement to monitor LCF for mini-bonds sold to consumers they were regulated for Corporate finance business but what does this actually mean...

The Financial Services Compensation Scheme has today announced that some investors in London Capital & Finance (LCF) will be offered compensation by the FSCS. However this only applies to a very limited group of investors in LCF bonds that transferred Stocks and Shares ISAs to LCF. Out of a total of around 11600 investors only 159 are covered by this compensation announced by the FSCS today. These 159 investors will receive their compensation by the end of February 2020. This will cover any investments up to £85,000. Any money beyond that is likely to be lost. Other investors in LCF may only see 20-25% of their money returned according to the Administrators. Why are only S&S ISA investors going to be compensated by FSCS? There are 3 different types of ISA. Although most people assume an ISA is a savings account, it isn't. It's actually a tax free wrapper that can hold cash but it can also be used to hold shares and investment funds (S&S ISA) and unregulated ...