FCA orders London Capital & Finance to remove all its marketing materials

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London Capital & Finance has been ordered by the Financial Conduct Authority to remove all its marketing materials.

At time of writing, every page of its website londoncapitalandfinance.co.uk has been replaced with the following notice:

FCA marketing

LC&F’s Facebook page has also been taken completely offline. Its Twitter page remains online, but no tweets appear since July 2017.

London Capital and Finance began issuing unregulated bonds in October 2015 and subsequently became an FCA-authorised firm in June 2016. The company is authorised by the FCA to conduct corporate finance business only (i.e. it is not authorised to conduct regulated activities with the general public). Its bonds are not subject to FCA regulation themselves – but its marketing materials promoting those bonds are subject to FCA regulation, hence the FCA’s takedown order.

Having used the accounting-period-shortening trick to give itself more time to file its accounts, London Capital & Finance’s last published accounts are now over a year and a half old.

I reviewed London Capital and Finance’s bonds in December 2017 as the first article on this blog. I noted that as an unregulated corpoate loan note, London Capital and Finance’s bonds were unsuitable for investors who were not sophisticated and/or high-net-worth, and should not be considered by investors who were looking for a “secure” or “guaranteed” investment.

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