UK 09:54 Tuesday, 6 October 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Yesterday in his BearCast, Tom Winnifrith offered subscribers to Leni Gas Cuba’s (CUBA) controversial 2p placement some excellent advice. He suggested that if the placement participants were not made aware that the company’s founders were about to or had just issued themselves 250,000,000 shares at 0.01p (for just £25,000) they could stand a very good chance of getting their money back. To do so they would need to complain to the Financial Ombudsman Service (FOS). Below I provide more information about how to go about this.
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Comments
drunken sailor
You would think so called “sophisticated” investors would know all that. It is very good of you and Tom to do so much for them. I hope they all thank you for it, even those dumb enough to have put in more that the £150k cap. Obviously they still have their 2p shares to sell at £500 trades at a time. Those, outside of big Dave and his cronies, that have 5p shares look to be completely up the creek without a paddle, but they were warned repeatedly. I wonder if all those who looked and the IPO and were tempted, but backed out thanks to the excellent coverage of the issues will also thank you?
iit's me
Your theory is wrong, FOS can only mediate between a regulated company and their client and that is only after the client has been through the regulated company’s complaints procedure and received a final letter. This process normally takes about 6 weeks. It seems to me that subscriptions were made via a placing letter issued directly by the company which is registered in the BVI. If as I suspect the clients were institutional (regulated companies) or professional clients and they dealt directly with LGC then there is NO recourse via FOS. They would also in some instance fall outside Section 21. Basically investors should have done more DD and then decided whether to invest or not.
If you were a 2p placement participant and NOT a professional investor you could complain to the FCA and hope they would take action against the company under Section 19 & 21of FSMA. I would have thought LGC would have sought legal advice and had these boxes ticked though. Therefore, to coin a TW phrase I think you are pissing in the wind with this one!!
Tom Winnifrith
IITsMe
article clearly states that placing letter is not the issue. It is emails that certain brokers sent to clients that are. I have 2 of them. Those emails are financial promotions and clearly fall foul of S21 – am sure those folks will have complaints to make
t