FSCS provides update on London Capital & Finance case

Maria Nikolova

The Financial Services Compensation Scheme says it has made some progress in gathering and examining information and evidence.

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

The Scheme explains that, since its previous update, it 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.

Surge is an online marketing company which acted on behalf of LCF, facilitating bond applications from prospective bondholders. Following an initial review of its call recordings and emails to investors, 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.

A further 2,200 people have completed FSCS’s fact-finding questionnaire. This takes the total to 7,511, which represents around three-quarters of LCF customers. 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

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.