Over 4,390 clients of London Capital & Finance complete FSCS’s questionnaire in one week

Maria Nikolova

More than 4,390 clients of London Capital & Finance completed FSCS’s fact-finding questionnaire in the first week it was posted.

The UK Financial Services Compensation Scheme (FSCS) has just provided an update on the matter regarding London Capital & Finance.

More than 4,390 clients of London Capital & Finance completed FSCS’s fact-finding questionnaire in the first week it was posted.

The Scheme would like to encourage even more LCF clients to complete the questionnaire as it will enable FSCS to build a better picture of the nature and extent of potentially misleading advice that they may have received. The Scheme notes that the information gathered through this process is purely to help it better understand the individual circumstances of investors, and the number of customers who may have been impacted.

Should there be grounds for compensation and FSCS starts accepting claims, information given in the questionnaire by LCF clients will not prejudice their claim.

Investors who come direct to FSCS will pay no charge, as FSCS is a completely free service.

On June 28, 2019, the Scheme provided a bit of positive news to investors saying its investigation into LCF leads it to believe that there are protected claims, which may result in compensation for some of its investors.

“Following an extensive review of LCF’S business practices, we believe that Surge Financial Ltd, acting on behalf of LCF, provided a number of LCF clients with misleading advice. As this is a regulated activity, it means that FSCS protection would be triggered and that there may therefore be a number of customers with eligible claims for compensation”, FSCS said back then.

FSCS, which had initially stated that it would not accept claims from LCF clients, has changed its stance since. In its update issued on May 31, 2019, FSCS said that, over the last few weeks it has been reviewing whether there may be grounds for compensation. This work is focused on the relationship between LCF and Surge Financial Ltd and the extent to which either company may have been carrying out regulated advising, arranging or other activities that could give rise to an eligible claim for compensation.

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