Orca CEO Iain Niblock calls out the mini-bond market after the collapse of mini-bond provider London Capital & Finance (LCF); “The high-profile collapse… highlights the perils of solely chasing an interest rate,” Orca CEO explained to AltFi. “This is a horrible situation for the savers and investors who were duped into a highly attractive interest rate.”; LCF promised returns of 9 percent a year and was marketed as a fixed rate ISA, which was not the case; investors were also unaware that the bonds were not covered by the Financial Services Compensation Scheme (FSCS) and so they cannot claim their money back by guarantees; the collapse puts a spotlight on the market and could bring about more regulation, in particular when it comes to marketing investment opportunities. Source.
