LCF director fined and banned in wake of mini-bond scandal

lcf director fined and banned in wake of mini-bond scandal

Probe: Ex-LCF compliance executive Floris Jakobus Huisamen (pictured)

A former London Capital & Finance (LCF) director has been banned from working in the City after investors lost £200million.

The financial regulator yesterday said ex-compliance executive Floris Jakobus Huisamen ‘recklessly’ signed off hundreds of promotions that misled bondholders.

More than 11,600 investors – many of whom were retired and elderly – lost £237.8million when LCF collapsed in 2019.

The firm had sold them ‘mini-bonds’, promising high returns and a low-risk investment.

Bondholders were told their cash would be lent to businesses that needed it to grow. But the money was funnelled to risky ventures.

The Financial Conduct Authority, led by Nikhil Rathi ordered Huisamen to pay a £31,800 fine and barred him from working in financial services.

Between February 2017 and December 2018, Huisamen approved misleading information on LCF’s brochures and website.

He ‘recklessly signed off’ the documents when ‘he was aware of clear risks that they were not compliant’, the FCA said.

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