Hugh James has recently commented on the news that London Capital & Finance has entered into administration after the Financial Conduct Authority began an investigation into the company concerning the misleading marketing of its high risk, unregulated mini bonds.
Whilst the Financial Services Compensation Scheme (‘FSCS’) has confirmed that the issuing of the bonds was not a regulated activity and therefore does not fall within the remit of FSCS protection, it is our understanding that following the FSCS’s review into London Capital & Finance, there is reason to believe that a number of investors received misleading advice from a company called Surge Financial Limited.
The FSCS’s review into how Surge Financial Limited was operated confirms they were an agent under the control of London Capital & Finance and as a result, London Capital & Finance remain liable for their misleading and negligent advice to investors.
Investors who purchased the bonds on the advice of Surge Financial Limited, or any other independent financial advisor, may therefore be eligible for compensation.
