The UK’s Financial Conduct Authority (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 he recklessly signed hundreds of financial offers, which helped to mislead thousands of investors.
LCF made mini bonds available to retail investors. The financial offers, signed by Mr Huisamen, presented a misleading picture of the mini bonds, making them look like a much more attractive investment than they were. Investors were not given the full picture of the risks of the product, including the presence of hidden charges and the unsustainable nature of the lending carried out by LCF.
Mr. Huisamen signed these financial offers despite his own concerns about LCF’s strategy. He failed to provide adequate control or adequately challenge senior management. In particular, it failed to gather evidence for the claims made, allowed promotions that gave the misleading impression that mini-bonds were regulated by the FCA, and continued to approve promotions even when it became aware of inaccurate claims.
Mr. Huisamen has agreed to settle the case and thus qualifies for a 30% discount. Without this discount, the penalty would have been £45,500.