Ian had lost £600,000 in the mini-bond scandal of London Capital & Finance, which collapsed in 2019 owing more than £230mn to investors.
Ian was a very popular Transparency Task Force volunteer and he was also one of the 170-plus respondents that had engaged with the all-party parliamentary group on personal banking and fairer financial services in relation to its call for evidence about the Financial Conduct Authority's supervision of LCF.
Ian’s submission to the APPG shows how terribly frustrated he had become trying to properly engage with the authorities.
I attended Ian’s funeral, and with his family we subsequently organised an early day motion to mark his passing and put his frustrations on the record.
It’s too late to do anything to help Ian, but like most people I’m convinced there’s more that could and should be done to properly fight back against the scammers, and as is often the case it makes most sense to ‘nip things in the bud’ – ie for scams to be closed down as soon as possible – before they really take hold and cause wide-scale carnage.
There’s a particular idea that we’re enthusiastic about – it’s precisely about closing down new scams early.
We don’t know why the FCA doesn't seem keen to trial the idea. Maybe the problem is cost.
The idea is the brainchild of TTF’s head of strategy, Mark Bishop, who says to make the FCA’s ScamSmart campaign more effective the FCA should change its ads by asking people who believe they've been approached to invest in a financial scam to directly tip off the regulator, instead of visiting its website to learn about financial scams.
We believe this approach would have three advantages:
- Prospective scammers would see the ads and realise that every potential victim could now notify the FCA, raising the risk of detection and thus acting as a deterrent.
- The FCA would be notified of more rip-off schemes, and far sooner after commencement, giving it more opportunity to act before widespread consumer detriment has occurred.
- An evidence trail would be created of citizens alerting the FCA, which, if no action resulted, could help victims make the case for compensation from the regulator.
That last point is especially poignant for advisers, because it has been well-documented that many IFAs have alerted the FCA to scams, even in relation to LCF, with Neil Liversidge of West Riding Personal Financial Solutions warning the regulator in November 2015 of LCF’s alleged marketing to unsophisticated retail investors and its lending practices, according to a report in the Evening Standard.
