The FCA has announced that there will be an independent investigation into the failure of London Capital & Finance

On 1 April 2019, the FCA announced that there will be an independent investigation into the failure of London Capital & Finance (LC&F). The FCA stated that the investigation should cover: whether the existing regulatory system adequately protects retail purchasers of mini-bonds from unacceptable levels of harm; and the FCA’s supervision of LC&F. LC&F was the issuer of mini-bonds which it stated it used to make loans to corporate borrowers to provide capital for further investment. On 10 December 2018, the FCA directed LC&F to withdraw its promotional material immediately, on the basis that the material was misleading, not fair and unclear. On 13 December 2018, the FCA imposed additional requirements on LC&F including: a) not to dispose of or deal with its assets save in limited circumstances; b) to cease conducting all regulated activity; and c) not to communicate any financial promotions. Those requirements were imposed pursuant to a voluntary…

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