The FSCS continues to twist and turn in a bid to allow LC&F mini-bond’s investors access to the FSCS funds as Money Marketing reports.
The two crucial points from the latest FOS statement are first that LC&F is responsible for the advice given by Surge and second that FOS appears to be just about covering everyone from when LC&F’s marketing came under regulatory scrutiny – so that is 7th June 2016.
The first crucial paragraph is here.
“London Capital & Finance plc (“LCF”) was originally set up in July 2012 as a commercial finance provider to UK companies. From September 2013, LCF sold mini-bonds, with trading significantly increasing from 2015 onwards. Whilst it previously had an interim consumer credit permission, LCF only became fully authorised on 7 June 2016. FSCS protection can only apply in relation to regulated activity carried out after this date.”
Then it says this protection continues despite a change in the advice regulations in 2018 under MiFID II. Those ‘advised’ are still apparently covered. The following is the crucial paragraph.
“Although the definition of advising has been narrowed for Part 4A permission purposes from 3 January 2018, the scope of FSCS protection was not affected and we are still able to protect advice without a personal recommendation.”
If you really want to appraise yourself of the full thinking of the FSCS – a kind word for it – here is the link to the full statement.
In other words, the farce continues.
FCA chief executive Andrew Bailey may face a cut to his bonus due to LC&F.
Sipp provider Embark bids for Alliance Savings Trust’s advised platform.
Professional Adviser’s investment webinar sees Columbia Threadneedle’s Toby Nangle suggest that Brexit has a 2,000 basis point swing in terms of returns depending on what happens and how markets react. So getting out my abacus that is 20 per cent. The biggest upside would be a pretty awful Brexit, says Nangle, though it would be terrible for markets long term.
Something useful to end with. New Model Adviser suggests ways in which advisers can get clients ready for property tax rule changes next year.