Complaints against FCA spike over Lloyds enhanced capital notes

The FCA received 154 complaints in February, tripling complaints lodged against the agency in a month following Lloyds having announced its intention to buy back bonds issued at the height of the financial crisis. Investors have called for the FCA to prevent the buy-back as Lloyds offers investors money for the assets below market value. While the FCA has noted it did not have a role in assessing the transactions, investors have received the right to appeal the decision of the High Court, stating that the terms and conditions of the products prevented a buy-back.

The regulator received 154 complaints against it in February, up from 48 in January and 30 in December. In its latest data bulletin it said the spike was down to its role in Lloyds decision to call its enhanced capital notes at par. Lloyds announced its intention to buy back the bonds, which it issued in exchange for other bonds at the height of the financial crisis in an attempt to boost its reserves, at par value in December 2014. This meant it was offering investors their money back on the assets at below the market price. The bonds in question yielded as much as 16%. With inter...