FSCS comments on London Capital & Finance court case
The Financial Services Compensation Scheme (FSCS) has commented on the application for judicial review regarding FSCS compensation for London Capital & Finance (LCF) customers. The application was filed by law firm Shearman & Sterling today at the High Court.
James Darbyshire, FSCS General Counsel, said:
“We appreciate LCF is a complex and sensitive case affecting a large number of investors who are keen to understand our decisions.
FSCS has undertaken a thorough and wide-ranging investigation to determine whether LCF carried out any regulated activities that we might be able to compensate for. This has included significant factual analysis and consideration of some complex legal and regulatory issues.
FSCS has been transparent and cooperative in discussing the legal issues with the investors and will continue to do so. To ensure that the investors’ real concerns are fully addressed, we have taken the unusual step to agree not to seek to enforce any costs order in our favour against the investors.
FSCS is an impartial service and is operationally independent from the financial regulators. FSCS reviews each claim on its individual merits according to the requirements under the rules, which FSCS is legally required to follow.”
Media and consumers can stay up-to-date with FSCS’s work on LCF at https://www.fscs.org.uk/failed-firms/lcf/.
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Notes for editors
Read more about the remit of FSCS on our Notes for editors page.