London Capital & Finance plc v Global Security Trustees Ltd [2019] EWHC 3339 (Ch)

WTLR Issue: Summer 2020

LONDON CAPITAL & FINANCE PLC (IN ADMINISTRATION)

V

GLOBAL SECURITY TRUSTEES LIMITED

Analysis

The claimant raised money from private investors for the purpose of making loans to small and medium enterprises. The money was raised by issuing ‘mini-bonds’ for periods of up to five years, at varying rates of interest. Over a period of around two years, £237m was raised from more than 11,500 investors. Security for the bonds was provided by the claimant executing a debenture in favour of the defendant, as a ‘security trustee’. By December 2018, when the FCA issued a first supervisory notice on the claimant on the basis that its promotional material was ‘misleading, unfair and unclear’, L and F were the sole directors of the defendant and each held 50% of the issued share capital. L was a partner in the law firm that was advising the claimant and also had professional connections with individuals who benefited from loans made by the claimant.

Counsel details

Matthew Collings QC (Maitland Chambers, 7 Stone Buildings, Lincoln’s Inn, London WC2A 3SZ, tel 20 7406 1200, e-mail clerks@maitlandchambers.com) and James Couser (Three Stone, 3 Stone Buildings, Lincoln’s Inn, London WC2A 3XL, tel 020 7242 4937, e-mail clerks@threestone.law), instructed by Mishcon de Reya LLP (Africa House, 70 Kingsway, London WC2B 6AH, tel 44 20 3321 7000, e-mail contactus@mishcon.com) for the claimant.

James Pickering (Enterprise Chambers, 9 Old Square, Lincoln’s Inn, London WC2A 3SR, tel 020 7405 9471, e-mail london@enterprisechambers.com), instructed by Judge Sykes Frixou (23 Kingsway, London WC2B 6YF, tel 020 7379 5114, e-mail info@jsf-law.co.uk) for the defendant

Cases referenced

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Legislation referenced

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