Email updates launched as possible grounds for LCF compensation explored
The Financial Services Compensation Scheme (FSCS) has today urged London Capital and Finance customers to register for updates via its website at https://www.fscs.org.uk/failed-firms/lcf/
FSCS are keen to ensure LCF customers are kept up to date as we continue to explore whether there are grounds for compensation. FSCS is working closely with the FCA, administrators and external legal counsel.
The promotional materials that we have reviewed stated that the LCF mini-bonds were not FSCS protected. However, after further analysis of LCF’s business practices, investment materials, and calls recorded with investors, FSCS is now investigating whether regulated activities were in fact carried out which might give rise to a claim.
This work and our legal analysis supports our view that LCF’s core activity of issuing their mini-bonds in the UK is not protected but that there are further issues that need examining. We are now therefore focusing on whether there was any regulated advising, arranging or other activities which may trigger our compensation. We also need to better understand the nature of the relationship between LCF and Surge Financial Ltd.
A Spokesperson for the FSCS stated:
“It is clear that LCF investors were badly let down so to help we want to be as transparent as possible over our process. By registering with us they will get regular updates on our investigation and this will be the best way for them to hear whether we believe there are grounds for compensation. This is a highly intricate case though, so we expect our investigation may take some time. We appreciate investors’ need for certainty so we can assure them that we are treating the case with the utmost urgency.”
Anthony Ozimic / 020 7375 8638
Note to editors
More about FSCS can be found on our Notes to editors page.