"When something like this happens it can be very distressing for the people involved especially when investing their hard earned savings.
"To make matters worse, people often blame themselves when it is entirely the fault of the advertising firm."
The FCA stated issuing mini-bonds was not a regulated activity so firms issuing mini-bonds do not need to be authorised by it.
However, when an authorised firm approves a promotion for mini-bonds, they must ensure that it is in line with FCA rules that the financial promotion is fair, clear and not misleading.
The regulator became concerned about the firm's marketing of its bonds and in December directed it to immediately withdraw its promotional material.
At the end of January Finbarr O’Connell, Adam Stephens, Colin Hardman and Henry Shinners of Smith & Williamson LLP were appointed as joint administrators of London Capital & Finance.
A spokesperson for Smith & Williamson said: "London & Capital Finance was the issuer of mini-bonds which were used for the purposes of making loans to corporate borrowers to provide those borrowers with capital for further investment.
“The main focus of the administrators’ current work is establishing what needs to be done in order to maximise the returns to the bondholders and other creditors and they are looking closely at the various loans made by the company to borrowers.
"However, as part of their work, the administrators are also investigating how the mini-bonds were promoted and sold to bondholders."