FCA Imposes Ban and Fines Former London Capital & Finance Compliance Head Over Financial Promotions

The Financial Conduct Authority (FCA) has taken decisive action against Floris Jakobus Huisamen, a key figure at London Capital & Finance plc (LCF), by imposing a ban and substantial fines for his role in the misleading financial promotions of minibonds targeted at retail investors.

LCF's marketing of minibonds, overseen by Mr. Huisamen, painted a deceptive picture of the investment, presenting it as more attractive than it actually was. The financial promotions failed to provide a comprehensive overview of the product's risks, including undisclosed charges and the unsustainable nature of LCF's lending practices.

Despite harboring reservations about LCF's strategy, Mr. Huisamen approved these financial promotions without adequate scrutiny or challenging senior management. Notably, he neglected to obtain evidence supporting the claims made in the promotions, permitted misleading impressions that the minibonds were FCA-regulated, and continued approval even after becoming aware of inaccurate claims.

Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, condemned Mr. Huisamen's actions, emphasizing the vital role he should have played in ensuring LCF's financial promotions were "fair, clear, and not misleading." Instead, the approval process devolved into a mere tick-box exercise under his watch, resulting in thousands of investors being swayed by highly deceptive statements.

Chambers stated, "His failings contributed to thousands of retail investors losing significant amounts of money. It is right that he can no longer work in financial services."

The ban and fines imposed on Mr. Huisamen underscore the FCA's commitment to holding individuals accountable for their role in misleading financial practices, particularly when they contribute to substantial financial losses for retail investors. The regulatory authority continues its efforts to maintain the integrity and transparency of financial markets, sending a strong message that such misconduct will not be tolerated within the financial services sector.

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