Thank you for contacting me about London Capital & Finance plc (LCF).
To clarify, LCF's estate will be dealt with by the administrators, already appointed by the Financial Conduct Authority (FCA), who will assess the company's assets and put forward proposals as to how they will proceed with the administration. The joint administrators will write to people affected with their proposals for the administration within eight weeks of appointment. This will include the process of making a claim.
If someone is approached by a company offering to help them recover their money, they should proceed with caution. For the vast majority of LCF's bond holders, there will be no benefit in involving a third party in making a claim. If anyone has questions about the administration process, they should contact the joint administrators.
Firms are required to be authorised by the FCA if they undertake any of the regulated activities listed in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the Order). Authorised firms are subject to a set of overarching principles and rules issued by the FCA. These principles and rules have to be followed when an authorised firm is carrying on regulated activities in the UK. The Order excludes certain activities from its scope, such as the issuing of mini bonds.
This means investors are unlikely to have access to the Financial Services Compensation Scheme (FSCS) in the event the firm is declared in default, but this would be a matter for the FSCS to determine. If the defaulting firm generated protected claims, e.g. from unsuitable advice on investments, the FSCS could compensate eligible claimants, provided all relevant criteria are met.
I appreciate your concerns, and I will continue to follow developments very closely.
Thank you again for taking the time to contact me.