Retail investors exposed to too much risk, says City watchdog February 18, 2020 Retail investors are being pushed into purchasing higher risk products that expose them to more risk than they can afford, the Financial Conduct Authority (FCA) has warned. In its annual report on the areas that could harm consumers, the City watchdog said that the sale of “unsuitable or fraudulent products” represents the most significant harm [...]
Just two women applied to be governor of the Bank of England February 4, 2020 Just two of the 23 people who applied to succeed Mark Carney as governor of the Bank of England were women, despite the Treasury enlisting a specialist headhunting firm in a bid to diversify the list of candidates. The government named Financial Conduct Authority boss Andrew Bailey, a former central banker, as the BoE’s next [...]
Incoming BoE head Andrew Bailey to be grilled by LCF mini-bond investigation January 23, 2020 Incoming Bank of England governor Andrew Bailey will be interviewed about his oversight of collapsed investment firm London Capital and Finance (LCF), an independent investigation said today. LCF collapsed in January 2019, leaving 11,600 investors who bought its mini-bonds facing collective losses of up to £237m. While LCF itself and its marketing material was regulated [...]
FSCS says it is ‘too early to predict’ London Capital & Finance compensation levels January 16, 2020 The financial services lifeboat said today it was “too early to predict” how much it would have to pay out in compensation to investors in collapsed mini-bond firm London Capital & Finance (LCF). Last week, the Financial Services Compensation Scheme (FSCS) said it would protect 159 LCF bondholders who switched from stocks and shares ISAs [...]
Firm at centre of mini-bond scandal ‘overstated’ value of holdings January 14, 2020 A firm at the centre of the London Capital & Finance (LCF) scandal was found to have “overvalued” a major asset on its balance sheet by a court today, meaning it was unlikely it could have paid back the money it owed LCF. London Oil & Gas was the biggest recipient of cash from LCF, [...]
Financial services lifeboat says only a handful of London Capital & Finance investors eligible for compensation January 9, 2020 The Financial Services Compensation Scheme (FSCS) today announced the “disappointing” news that only a small number of investors in collapsed mini-bond company London Capital & Finance (LCF) are eligible for compensation. It said it would protect the 159 bondholders who switched from stocks and shares ISAs to LCF bonds. The FSCS said it is unable [...]
FCA to ban marketing of mini-bonds amid concerns over investor losses November 26, 2019 The Financial Conduct Authority (FCA) today set out to ban the mass marketing of speculative mini-bonds to ordinary investors. The watchdog said the unregulated bonds could cause harm to amateurs, following a spate of investor losses. Read more: What are mini-bonds? Everything you need to know about the products hit by the FCA’s marketing ban [...]
What are mini-bonds? Everything you need to know about the products hit by the FCA’s marketing ban November 26, 2019 The Financial Conduct Authority (FCA) today announced it is using its special powers to ban the marketing of some unregulated mini-bonds to individual investors. Mini-bonds have come under scrutiny since the collapse of lender London Capital & Finance (LCF) earlier this year, but what exactly are the controversial investment products, and what has the FCA [...]
Exclusive: Questions over Chilango’s future after burrito chain calls in restructuring firm RSM November 14, 2019 Mexican chain Chilango, best known for its “Burrito Bonds”, is in talks to secure its long-term future with restructuring firm RSM and is more than six weeks late posting its accounts. City A.M. understands from a source familiar with the discussions that the firm is considering all options including administration or a company voluntary arrangement [...]
City watchdog calls on internet giants to do more in fight against financial crime ‘epidemic’ September 5, 2019 The chair of the Financial Conduct Authority has called on internet giants to play a greater role in tackling financial crime which he said had reached “epidemic proportions” in the UK. Charles Randell told the Cambridge Economic Crime Symposium on Wednesday night that “financial crime, specifically fraud against individuals, has reached epidemic proportions”. Randell said [...]