London Capital & Finance

Thursday, April 18, 2019This briefing looks at the failure of London Capital & Finance Plc (LCF) and the consequences for those who invested in the firm's 'mini-bonds'.

Metadata
Provider: 
UK Parliament researchUK Parliament research
URL: 
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8550https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8550
Retrieved on: 
Saturday, April 20, 2019
Information
Tags: 
Bond
Summary
Key Points: 
  • House of Commons Library

    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.
  • The regulation of mini-bonds and the supervision of LCF by the regulator, the Financial Conduct Authority, will be investigated by an independent person.
  • Nevertheless, the Government could, in exceptional circumstances, decide to set up an ad hoc compensation scheme.
Copyright: 
2019 UK Parliament research. All Rights Reserved.