Tweet
The FCA has fined a former director of London Capital & Finance plc (LCF) £31,800 and banned him from working in financial services. Floris Jakobus Huisamen was responsible for compliance at LCF but recklessly signed off hundreds of financial promotions, which contributed to thousands of investors being misled.
LCF marketed minibonds to retail investors. Financial promotions, signed off by Mr Huisamen, presented a misleading picture of the minibonds, making them appear a far more attractive investment than they were. Investors were not given the full picture about the risks of the product, including the presence of hidden charges and the unsustainable nature of the lending being carried out by LCF.
Mr Huisamen signed off these financial promotions despite his own concerns about LCF’s strategy. He failed to provide proper scrutiny or sufficiently challenge senior management. In particular, he failed to obtain evidence of the claims being made, allowed promotions that gave a misleading impression that the minibonds were regulated by the FCA and continued to approve promotions even when he became aware of inaccurate claims.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, said:
'Mr Huisamen should have ensured LCF’s financial promotions were ‘fair, clear, and not misleading’. However, under him, the approval process became an ineffective tick-box exercise – as a result, thousands of investors were persuaded to invest on the basis of highly misleading statements.
'His failings contributed to thousands of retail investors losing significant amounts of money. It is right that he can no longer work in financial services.'
Notes to editors
Read the Final Notice.
Mr Huisamen agreed to settle the case and so qualified for a 30% discount. Without this discount, the penalty would have been £45,500.
In October 2023, we censured LCF over their financial promotions.
The Serious Fraud Office is carefully considering the LCF case.
The FCA undertook a significant transformation plan to implement the recommendations of Dame Elizabeth Gloster’s review into the regulation of LCF.
In 2020, the FCA banned the mass-marketing of speculative illiquid securities - including speculative minibonds - to retail investors.
Find out more information about the FCA.
https://www.fca.org.uk/news/press-re...ial-promotions
