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.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<