News has broken that London Capital & Finance has put itself into administration after the Financial Conduct Authority began an investigation into the company and froze the company’s assets for its continued mis-sale of high risk, unregulated bonds.
Smith & Williamson, a well-known accountancy firm, has been appointed to deal with the administration of the company.
It is our understanding that London Capital & Finance offered asset backed corporate bonds as an investment opportunity but the bonds were unregulated and only suitable for sophisticated investors of high net worth.
Smith & Williamson has confirmed in a recent interview that bondholders will rank ahead of both shareholders and the HMRC in terms of recovery, however, that said; they have not been able to comment on the likelihood of bondholders getting their money back given that they only know where some of the investment money went and it is early days in the recovery process. There is no saying how long the administration process will take.
If you were advised by an independent financial adviser to invest in London Capital & Finance bonds then Hugh James’s Financial Mis-Selling Team could help you get your money back. Contact us today for a free, no obligation consultation.