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London Capital & Finance

Published Thursday, April 18, 2019

This briefing looks at the failure of London Capital & Finance Plc (LCF) and the consequences for those who invested in the firm's 'mini-bonds'.

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11,625 bondholders invested around £237m in the products sold by London Capital & Finance Plc (LCF). LCF failed in January 2019, and the administrators estimated in March that investors might only get 20% of their investment back.

Individuals at LCF are being investigated by the Serious Fraud Office. The regulation of ‘mini-bonds’ and the supervision of LCF by the regulator, the Financial Conduct Authority, will be investigated by an independent person.

Bondholders are unlikely to be eligible for compensation with the existing scheme. Nevertheless, the Government could, in exceptional circumstances, decide to set up an ad hoc compensation scheme.

Commons Briefing papers CBP-8550

Author: Federico Mor

Topics: Companies, Insolvency

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