FSCS starts paying compensation to London Capital & Finance customers who received misleading advice
So far FSCS has issued 281 decisions and paid £5,155,344 in compensation to LCF customers.
The UK Financial Services Compensation Scheme (FSCS) today provided an update to clients of London Capital & Finance (LCF).
FSCS says it has started paying compensation to customers who received misleading advice from LCF. So far the body has issued 281 decisions and paid £5,155,344 in compensation to LCF customers.
FSCS has set up a specialist team, focused on reviewing advice claims on a case by case basis. The body has been able to review claims without customers needing to take any action.
During June, FSCS gained access to an additional 100,000 emails held within LCF’s email server. This evidence provides more information for the body to assess.
While the Scheme had expected to reach decisions on the majority of LCF claims by the end of September, assessing this additional information will now extend the timeframe for processing claims. This new evidence is also likely to lead to an increase in the number of LCF customers that will be eligible for compensation.
FSCS is recalculating the timeframe for processing claims and will provide an update in its next communication before the end of July.
Earlier this week, the UK Financial Reporting Council (FRC) confirmed that it had commenced three investigations into the audits of London Capital & Finance plc. The investigations will cover the audits for the one month period ended 30 April 2015 (carried out by Oliver Clive & Co.), the year ended 30 April 2016 (carried out by PwC) and the year ended 30 April 2017 (carried out by EY).
The probe will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.
