The regulated nature of LCF drew him in, he said. "It gave me reassurance at the time that the FCA was was regulating this company."
He added: "When I saw my MP for the first time in 2019 I said, I cannot believe that this happened in Great Britain, you know, you'd expect higher authorities to protect me and my money, but the reality is it's a mess, that there's no protection for the consumer.
"I wanted to invest in Britain. There was, you know, politicians saying the banks aren't lending to businesses, they're crying out for investment. I thought this lot was going to protect me, but the reality is that they didn't."
Apart from the financial loss, as is often the case, the saga has made a mark on Smith's life.
"I'm a totally different person, you know, it's affected my well being. I don't trust people anymore, I'm cautious.
"This is really the first time I've managed to speak in five years, really."
He said he wants the FCA to be honest and "admit its failings of the past".
"The only way to get confidence from a large number of investors, ...to get investment in the in the city once again, they need to admit their failings, they need to make right their failings of the past."
The FCA declined to comment.
carmen.reichman@ft.com
