FSCS confirms claim concerning its decision about London Capital & Finance bonds

Maria Nikolova

The claimants seek orders to quash the FSCS decision that the issuance by LC&F of bonds on or after January 3, 2018 was not a regulated activity.

The UK Financial Services Compensation Scheme (FSCS) has just published a notice addressed to all holders of bonds issued by London Capital & Finance plc (“LC&F”) who purchased bonds on or after January 3, 2018 and who have not received compensation from Financial Services Compensation Scheme Limited.

The FSCS confirms there is a claim concerning the decision of FSCS that the issuance by LC&F of bonds on or after 3 January 2018 was not a regulated activity. The Claimants, who were investors in LC&F bonds, seek orders to (inter alia) quash FSCS Decision and direct FSCS to make a further decision as to the eligibility of the claimants for compensation in accordance with the Court’s judgment.

Permission for the Claim to proceed was granted pursuant to an order of Mr Justice Murray dated 3 September 2020 and the Claim will now proceed to a substantive hearing on a date to be fixed. The Claimants are represented by a team of solicitors and barristers.

As of August 27, 2020, FSCS issued 1,295 decisions and paid out just over £20 million in compensation to LCF customers. This represents close to a 50% increase in the amount FSCS paid out since the preceding month.

One of the things FSCS is doing to help speed up this process is increasing the size of the specialist team FSCS set up to review LCF claims by nearly 80%. Because of the amount of data it needs to review, it does not expect to complete this process before the end of December.

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