FSCS to start issuing decisions on LCF advice claims by the end of May
The Scheme has already started assessing individual claims
The Financial Services Compensation Scheme (FSCS) will start to issue decisions on London Capital & Finance (LCF) claims relating to misleading advice given to its customers before the end of this month. FSCS expects to complete the process of reviewing claims by the end of September.
Having completed a careful analysis of all the information it has gathered – amounting to close to a million pieces of information – FSCS has now started the process of reviewing individual claims.
FSCS has set up a large team who are focussed specifically on reviewing each claim on a case by case basis. Once a decision has been reached on an individual claim, FSCS will send a letter to the customer to confirm the outcome, and if they are eligible for compensation, a cheque will be sent alongside.
FSCS has simplified the process by ensuring LCF customers do not need to submit a claim or provide any further information at this stage. If they have any questions about their claim or the review process, they can visit the LCF page on FSCS’s website, which is being updated on a regular basis with the latest information.
Caroline Rainbird, FSCS’s CEO said, “Having spent time reviewing all of the information we have gathered, I am pleased that we are now in a position to look at individual claims and will start to issue decisions on those claims this month, thereby providing some certainty for LCF customers.
“We appreciate that this process has been a lengthy one and that for many LCF customers the wait is not yet over. We want to reassure LCF customers that we are continuing to work tirelessly to bring this process to a conclusion and ensure that those customers who are entitled to compensation receive it.”
While FSCS is aware there are some customers who were given misleading advice, and will, therefore, be entitled to compensation, FSCS still expects that a large proportion of LCF customers will not be eligible for compensation on this basis.
FSCS will provide a further update on its progress before the end of June. LCF customers do not need to take any action. Further information is available on the LCF page on FSCS’s website.
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Notes for editors
Read more about the remit of FSCS on our Notes for editors page.