We review London European Securities’ unregulated bonds paying 5.5% per year
London European Securities claims to offer “secure and protected” unregulated bonds paying 5.5% interest on Sterling investments for 12 months.
The company also offers investments in Euros and dollars, and over 6, 12 or “12+12” month terms. Rates are only disclosed when the investor provides their contact details, although in an August Facebook post, the company says it pays “up to 4.9%” on Euro investments.
London European Securities is regulated as an Alternative Investment Fund Manager in the UK, which does not amount to full FCA authorisation, with no entry on the FCA register. As such it is restricted on the extent to which it can market its services.
That didn’t stop the company entering a polo team in the Sandbanks beach polo tournament emblazoned with the number “5.6” on their shirts (the interest rate it offered at the time) to advertise its bonds in July 2019.
Funds raised from investors are used for commercial lending.
Who are London European Securities?
London European Securities is headed by Martin Young, who owns 100% of London European Securities Limited. The company was incorporated in November 2016.
Its last accounts (December 2018) show the company to be marginally solvent with £84k in net assets (£5.3m in assets and £5.2m in liabilities). LES took advantage of small-company exemptions and did not have the accounts audited or file a profit and loss account, so the accounts are of limited value for due diligence purposes.
Martin Young is the CEO of Meyado Group, a private wealth management company.
In his personal blog Young also refers to his history as “the CEO of Meretec Corporation which was a private equity deal where he commercialised the de-zinching of galavnised [sic] steel in plants built plants in East Chicago and Melbourne. After this company was sold Martin took over as CEO of Corsair Venture Capital Management a role he still holds today”.
The reference to Meretec being sold does not tell the full story; Meretec in fact went into administration. A number of investors who invested in loans or shares issued by Meretec lost their money as the sale did not raise sufficient funds to pay investors back.
