The Financial Conduct Authority says Floris Jacobs-Huisamen “recklessly signed up hundreds of promotions” while working for the disgraced mini-bond issuer, misleading thousands of investors. He said it was a contributing factor.
The watchdog said the financial stimulus approved by Huisamen “presents a misleading picture” and makes mini-bonds “appear to be a much more attractive investment than they actually are.” Ta.
“Mr. Huisamen approved these financial promotions despite his own concerns about LCF’s strategy,” the newspaper said. “He failed to provide adequate oversight or adequately challenge senior management.”
FCA slams London Capital & Finance over mini-bond promotion
The FCA said Huisamen also allowed promotions that gave the misleading impression that mini-bonds were regulated.
It added: “We continued to approve promotions even after we became aware of the inaccurate claims.”
Therese Chambers, joint executive director of enforcement and market oversight, said it was right that Mr Huisamen would be barred from working in financial services.
“Thousands of retail investors suffered significant losses because of his failure,” she said. “Under him, the approval process became an inefficient checkbox exercise.”
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The FCA’s action against Huisamen comes after news that former LCF chief executive Michael Thomson will be jailed for 10 months for money laundering and fraud related to the notorious mini-bonds. It took place a month later.
It has been more than four years since around 11,000 investors lost a total of £237m over five years on LCF’s minibond scheme. The scandal, which saw the FCA come under significant criticism in an independent report, led to the establishment of a government compensation scheme, which paid out £115m to affected investors.
Last October, LCF was reprimanded by the FCA, which decided not to impose a fine on the bankrupt company.