Emboldened LCF investors secure crowd funding for FSCS legal challenge

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After being denied compensation from the Financial Services Compensation Scheme (other than a tiny handful of exceptions,) London Capital & Finance investors have raised money via crowdfunding to launch a judicial review.

As at 23rd April the campaign had already raised £7,833, exceeding its initial £7,000 target. Technically the campaign is to fund the judicial challenges of only the four LCF investors on the creditors' committee, but if their challenges succeed, this will set a precedent for the rest.

London Capital & Finance investors have been both emboldened and enraged by the FSCS' early indications that it will bail out investors in fellow collapsed minibond scheme Basset & Gold, which went into administration on 1 April.

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FCA knew about misselling of Blackmore Bonds three years before collapse

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The collapse of Blackmore Bonds has once again laid bare the Financial Conduct Authority's institutional contempt for its objective of consumer protection.

Paul Carlier, an independent consultant most well known for blowing the whistle on dodgy FX dealings at Lloyds, contacted the FCA on March 2017 to warn them that Blackmore Bonds' high-risk investments were being missold by an unregulated introducer named Amyma.

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Breaking: Blackmore Bonds collapses into administration

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After months of delayed and missing payments and failure to file legally-required accounts, Blackmore Bonds is finally to be taken out back and put out of investors' misery.

Administrators Duff and Phelps have been appointed by a security trustee (presumably Oak Fund Services (Guernsey) Limited), according to IFA trade rag Money Marketing. The news is little surprise as D&P were originally approached by Blackmore investors in January, seeking answers after months of delayed and missing interest payments.

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Global Edge’s CEO stamps feet, threatens legal action

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At the turn of the year I reviewed Global Edge’s bonds paying 21% per year.

Global Edge’s bonds claimed to offer “consistent profits regardless of Brexit” and were being promoted in the New Scientist’s newsletter (which is not exclusive to high net worth and sophisticated investors).

It transpires that The Growth Market was also employed to market the bonds. The Growth Market were investigated by the Mirror recently, after the collapse of an unrelated unregulated investment, which found that The Growth Market’s sales reps hid behind fake names while assuring investors that the collapsed investment was 100% safe.

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