FCA and SFO continue to investigate London Capital & Finance

Maria Nikolova

The Financial Conduct Authority is investigating multiple lines of enquiry concerning individuals and companies connected to LCF.

The UK Financial Conduct Authority (FCA) has earlier today posted an update regarding the investigation into London Capital and Finance (LCF). Customers of the failed firm will hardly be impressed by the update, as the regulator simply states that, together with the Serious Fraud Office (SFO), it continues to investigate actions relating to the sale of mini-bonds and ISA bonds by LCF.

The FCA says it is investigating multiple lines of enquiry concerning individuals and companies connected to LCF. To date, the regulator has obtained tens of thousands of documents and is undertaking a thorough and forensic review of those. Thousands of hours have been spent on the investigation by FCA enforcement staff since it was opened and thee watchdog is actively pursuing all reasonable lines of enquiry.

The regulator notes that this is a current criminal investigation and for legal reasons it may not be able to give the public much information.

The UK regulator is introducing a ban on the mass marketing of speculative mini-bonds to retail customers. The restriction will come into effect on January 1, 2020 and will last for 12 months while the FCA consults on making permanent rules.

The restriction means that unlisted speculative mini-bonds can only be promoted to investors that firms know are sophisticated or high net worth. Marketing material produced or approved by an authorised firm will also have to include a specific risk warning and disclose any costs or payments to third parties that are deducted from the money raised from investors.

Mini-bonds have drawn widespread attention after the collapse of LCF, which has left approximately 14,000 consumers who had invested in its mini-bonds at risk of losses.

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<