London Capital & Finance Plc (“LC&F”) offers bonds with fixed interest rates that are asset backed for security. A detailed presentation of each bond offered can be found in the respective Information Memorandum. This website is not intended to be a source of advice or credit analysis and the information contained herein does not constitute investment advice. Therefore, any decision in connection with funds, instruments or transactions described or mentioned within this website must be made solely on the information contained in the relevant Information Memorandum and no reliance should be placed on any other representations.
The bonds are corporate loans and are not regulated by the FCA and investments into the LC&F bonds are not protected by the Financial Services Compensation Scheme (FSCS).
LC&F is authorised and regulated by the Financial Conduct Authority, FRN 722603. It should be noted that the bonds offered by LC&F are repaid via loans made to companies and therefore your capital is at risk. Interest payments are not guaranteed if the borrower defaults. It is important to remember that historic loan default rates are not necessarily indicative of future default rates. Prospective investors are advised to consult their own professional advisors before contemplating any investment to which this website refers. LC&F does not provide advice to investors and retail clients.
Investing in the Bonds carries significant risk and you may lose part or all of your investment. Investors should note that repayment of the bonds offered by London Capital & Finance Plc, and the payment of interest on the bonds, depends on the performance of loans made by London Capital & Finance Plc to various small and medium sized borrowers. In the event that these borrowers default on the loans, investors are likely to lose some or all of their investment. Investment in the bonds of London Capital & Finance Plc is therefore speculative and involves a significant degree of risk. Please ensure you read the full Information Memorandum for the specific bond you choose and pay attention to the Risk Factors.
The below are the risk factors that the Directors believe are the most significant, the below should not be considered a full list of associated risks, further risk factors are contained in the Information Memorandum:
Financial Services Compensation Scheme
The protections afforded by the Financial Services and Markets Act 2000 including recourse to the Financial Ombudsman Service and compensation entitlements under the Financial Services Compensation Scheme do not apply to the bonds offered. All prospective investors and Bond holders are strongly recommended to seek advice on the suitability of this investment.
Bonds are not regulated by the FCA
The bonds issued by the LC&F constitute loans to the company and as such are not regulated by the Financial Conduct Authority.
Bonds are not transferable
There is, and will be, no established market for the Bonds as the Bonds are not transferable and you should not invest if you may need to realise your investment prematurely.
Illiquidity and non-transferability
Investments in unquoted securities (i.e., investments not listed or traded on any stock market or exchange) such as the Bonds are illiquid (i.e., they cannot be disposed of prior to the Maturity Date so as to realise cash). The Bonds are non-transferable, so your money is effectively locked in until the Maturity Date of each specific Bond.
Proceeds of the realisation of security
The Bonds are secured by a debenture over the assets of the Company. There can be no assurance that, in the event that this security is realised, the amounts realised will be sufficient to satisfy the obligations to repay principal and accrued interest under the Bonds.
If you are viewing this website from outside the jurisdiction of England and Wales, the material contained on this website may be interpreted as a financial promotion or an offer to purchase or sell securities. The information on this website is intended to be viewed by persons who do not fall within the scope of the financial promotions regulations of their country of residence, or the country in which this website is being viewed. If you are uncertain about your position under the laws of your country of residence or the country in which this website is being viewed, you should obtain legal advice from a lawyer practicing in that country to clarify your position.