Complaints against FCA spike over Lloyds enhanced capital notes

Consumer gripes tripled in February

Complaints against the Financial Conduct Authority (FCA) tripled in February after investors lost out in Lloyds Banking Group's repurchase of its enhanced capital notes.

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...