In February 2024, the Financial Conduct Authority (FCA) fined Floris Jakobus Huisamen £31,800 and banned him from holding any regulated position for his role in the mismanagement of London Capital & Finance plc (LCF). As LCF’s Director of Risk and Compliance, Huisamen approved misleading financial promotions from 2017 to 2018. These promotions falsely assured investors that loans were backed by assets and that LCF’s minibonds were eligible for ISA tax benefits, leading to significant investor losses.
Key Failures:
- Huisamen recklessly signed off on financial promotions that misrepresented LCF’s lending processes and failed to disclose key risks, including 25.5% hidden fees that affected borrowers’ ability to repay loans.
- He misled investors into believing that minibonds were secured against realisable assets and that the investments were ISA-compliant, inducing thousands to invest £108 million under false pretenses.
- Despite multiple warnings and red flags, Huisamen ignored concerns, allowing LCF’s misrepresentations to continue, further harming over 11,000 bondholders.
The FCA ruled that Huisamen lacked integrity and posed a risk to consumers and the financial system. This ban and fine serve as a reminder of the consequences of failing to uphold regulatory standards, especially when misleading financial promotions are involved.
For more details, you can view the full FCA Final Notice.
About Michael Rasmussen
Michael Rasmussen is the founder of United Atlantic Legal Services. He is a licensed attorney in Florida and registered solicitor in the United Kingdom. Michael has acted as General Counsel and Chief Compliance Officer to several investment advisers, including private fund managers, responsible for the management of billions of dollars in client assets.
Michael is also the founder of FinProLaw, an online learning platform where Michael has created courses designed for investment adviser compliance professionals. These courses include:
- Investment Adviser Compliance Essential for Chief Compliance Officers
- Foundations of Investment Adviser Compliance
- What is a “Security”?
- Investment Adviser Marketing Rule
- Regulation A – Exemption from Registration
- Regulation Crowdfunding – Exemption from Registration
- Regulation D – Exemption from Registration
Michael can also be found on LinkedIn.
Investment adviser firms who are also clients of United Atlantic Legal Services can receive many of these courses at a significantly reduced fee or, in some cases, at no expense. Contact us today or visit the FinProLaw to learn more.