FSCS: Nothing definitive to report about London Capital & Finance

Maria Nikolova

The Compensation Scheme says it continues to investigate this complex matter.

The UK Financial Services Compensation Scheme (FSCS) has earlier today published the latest edition of “Outlook” where the body discusses updates that have taken place since it issued the previous edition in April this year.

The report features a brief notice about failed firm London Capital & Finance (LCF) with the comment by the Compensation Scheme providing little positive news to customers of LCF.

FSCS says:

“With regard to London Capital & Finance (LCF) there is not yet anything definitive to report as, working closely with the FCA and the administrators, we continue to investigate this complex matter. At the present time we cannot say what impact this may have upon levy numbers. We are keeping LCF customers updated and will of course keep you informed with our progress”.

As per the most recent FSCS update regarding LCF, the body has made some progress in gathering and examining information and evidence. This includes obtaining further records from Surge Financial Ltd of customers’ contact with them. The Scheme is also continuing to work with Smith & Williamson LLP, the joint administrators of LCF, to obtain further information to assist with its investigations.

FSCS believes that Surge, acting on behalf of LCF, provided some LCF clients with misleading advice, in both telephone calls and emails. The further records which have been shared with FSCS are set to help the body determine whether LCF customers are eligible for compensation.

Thousands of people have completed FSCS’s fact-finding questionnaire. The Scheme encourages the remaining LCF customers to complete the questionnaire. This will in no way prejudice any future claim they may have with FSCS.

Claiming with FSCS directly means a customer gets 100% of the compensation they are owed, up to a limit of £85,000, as the Scheme provides a free service to customers.

LCF, which was originally set up in July 2012 as a commercial finance provider to UK companies, sold mini-bonds from September 2013, with trading significantly increasing from 2015 onwards. As LCF only became fully authorised on June 7, 2016, FSCS protection can only apply in relation to regulated activity carried out after this date.

Read this next

Executive Moves

Christine Kiener joins Saxo Markets UK as Head of Institutional Sales

“I have been very impressed by the strong track record, clear strategic pathway and ambition of the Saxo business. I am excited to start working with the team to further grow the institutional footprint which has been established in the UK.”

Industry News

CFTC charges Rathnakishore Giri with $12m Bitcoin ponzi scheme

“Identifying and policing fraud in these emerging markets may be difficult or delayed in light of the agency’s limited visibility in these markets”, said CFTC Commissioner Kristin Johnson.

Institutional FX

AbbeyCross raises $2.47m to develop FX market infrastructure for EM currencies

Many EM currencies are currently traded without full-price discovery, creating an unlimited compliance and regulatory risk.

Digital Assets

YouHodler enhances Multi HODL: faster rates and execution, lower fees

“We know some traders mentioned freezing issues when opening or closing a Multi HODL deal. Now, those problems are completely gone”.

Industry News

ASIC bans Funds United Pty director for six years

The six-year ban will prevent Ms. Hutchinson from controlling an entity that carries on a financial services business, and performing any function within the industry.

Inside View

Brave new world: Recruitment of fintech talent in the new UK immigration environment

In this article, solicitor Denise Osterwald outlines what UK businesses should do to attract top talent from abroad.

Digital Assets, Interviews

FX goes Crypto: Exclusive interview with BVNK’s Jonathan Cumberlidge

BVNK is the new name in the City of London. Co-founded by ex-TradFi Chris Harmse, Balfour Group founder Jesse Hamson-Struthers, and ex-TrueLayer George Davis, the firm provides a single platform to bridge fiat and crypto together. 

Digital Assets

AAX ranked world’s second largest spot exchange, only behind Binance

Crypto trading volumes experienced their first surge in activity since March as the majority of digital assets began their recovery from the recent grim price action, according to a new report by Cryptocompare.

Digital Assets

Bitpay teams up with Cardlytics to provide 15% cashback rewards

Crypto payment service provider Bitpay announced a partnership with Cardlytics Inc (NASDAQ:CDLX), which it says will offer more rewards for BitPay cardholders on its platform.

<