UK FCA Fines, Bans Ex-London Capital Compliance Chief £31,800

BySamson Ononeme

Feb 13, 2024 , ,
Argento Wealth Ltd and Daniel Willis agreed to pay £1.6 million to the FCA to facilitate the distribution of funds to investors impacted by the alleged unlawful schemes.

Key Insights

  • UK FCA fines and bans ex-London Capital & Finance director Floris Huisamen £31,800 for approving misleading mini-bond promotions
  • Huisamen was compliance head but recklessly signed off ads that failed to properly disclose risks around firm’s financial products
  • Investors lost £237 million when London Capital collapsed in 2019 after being exposed to unsuitable mini-bond investments

LONDON (MarketsXplora) – Britain’s financial watchdog has fined and banned former London Capital & Finance director Floris Jakobus Huisamen for approving misleading promotions of risky “minibonds” sold to small investors who lost money.

The Financial Conduct Authority said it fined the ex-compliance head 31,800 pounds ($39,283) and barred him from working in UK finance, in a damning indictment of his oversight failures at the collapsed firm.

Huisamen signed off on hundreds of adverts which failed to clearly spell out hidden charges and other red flags around LC&F’s financial products and sustainability, the FCA found.

He admitted exposing ordinary retail clients to serious losses through negligent greenlighting of inappropriate promotions, despite his own misgivings.

“Mr Huisamen recklessly approved financial promotions which presented a misleading impression of mini-bond investments and failed to communicate the high risks involved,” said Mark Steward, head of enforcement at the FCA.

LC&F marketed mini-bonds promising 8% yearly interest payments to often inexperienced investors who lost around 237 million pounds when it went bust in early 2019.

The FCA found Huisamen approved ads that falsely claimed oversight by the watchdog itself, and that he failed to properly verify advertised loan performance, exposure concentrations and default cover.

Huisamen continues to face potential court action from LCF’s administrators to recover funds owed to misled investors, according to UK insolvency filings.

He agreed to settle the regulatory action, securing a 30% fine discount which reduced the penalty from a potential 45,500 pounds, the FCA said.

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