UK Financial Services Compensation Scheme in final stages of investigation into B&G Finance

Maria Nikolova

While this investigation may have similarities with London Capital & Finance, B&G Finance Ltd operated under a different structure.

The UK Financial Services Compensation Scheme (FSCS) today provided an update on its investigation into Basset & Gold Finance Ltd (B&G Finance).

The Scheme has been reviewing the information received from the administrators. It has been examining if B&G Finance owes a civil liability to customers that would enable them to sue the firm in court.

FSCS has determined that B&G Finance may have mis-sold Basset and Gold plc mini-bonds to retail customers from March 1, 2018. Although this investigation may share similarities with London Capital & Finance, B&G Finance Ltd operated under a different structure. It did not issue its own bonds but arranged for customers to buy bonds issued by a different firm.

LCF issued its own bonds – which FSCS considers is not a regulated activity – whereas B&G Finance Ltd carried out the regulated activity of arranging. Because the other requirements under our rules are also met, FSCS may be able to protect many customers of B&G Finance Ltd.

FSCS says it has now moved into the final stages of its investigation and it will start to process in phases the claims received so far. The body cannot confirm when it will be looking at any one individual claim as it needs to contact customers for further information.

However, as soon as the investigation is complete, FSCS will move all submitted claims to its claims processing teams for assessment.

As outlined in previous updates, FSCS is aware that principal firms have provided guidance to customers that were mis-sold their B&G mini-bond between 31 October 2016 – 1 March 2018.

If a customer ‘rolled over’ their investment after 1 March 2018, FSCS will consider their claim against B&G Finance Ltd. For clarity, a roll-over investment would have occurred at the end of a customer’s investment period, where the money was reinvested with Basset & Gold, through B&G Finance Ltd from 1 March 2018.

Read this next

Digital Assets

SEC apparently approved Ether ETF as VanEck’s listed by DTCC

Amid increasing speculation about the possible approval of a spot Ether (ETH) exchange-traded fund (ETF) in the United States, global investment manager VanEck’s ETF has been listed by the Depository Trust and Clearing Corporation (DTCC) under the ticker symbol “ETHV.”

blockdag

Unlocking Investment Potential: Introducing MoonBag Presale, the Cryptocurrency Set to Surpass ApeCoin and Bitbot

Discover MoonBag Presale, the cryptocurrency set to surpass ApeCoin and Bitbot. Unlock your investment potential now!

Fintech

Playtech sees promising growth despite dispute with Caliplay

Gambling technology group Playtech plc (LSE: PTEC) reported solid financial results for the four months to April 30 as B2B growth and Snaitech’s record performance pushed it towards large gains in revenue.

Chainwire

Multipool Launches LBP on Fjord Foundry Raising $200k in 24 Hours

Multipool, a leading innovator in the blockchain and cryptocurrency industry, launched their Fjord Foundry LBP on May 21st, raising $200k in the first 24 hours.

Chainwire

$BEER, a New Solana-Based Memecoin completes Pre-Sale of 30,000 SOL this week

The Liquid Gold, $BEER, has become the most discussed topic on Solana over the past two weeks. $BEER has skyrocketed into Twitter trends across Europe & Asia, captivating beer lovers worldwide.

Digital Assets

Hong Kong regulator orders Worldcoin to cease operations over privacy concerns

Hong Kong’s privacy regulator has ordered Worldcoin Foundation to cease all operations of its cryptocurrency project in the city, citing risks to privacy and personal data.

Inside View

MT4 vs MT5: Which Should You Choose for Crypto Trading?

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two sophisticated trading platforms developed by MetaQuotes Software. Although MT4 is the more widely adopted choice, traders must determine which platform is better suited for them and understand the reasons behind this choice. Here’s everything you need to know.

Digital Assets

Intentable.io Launches Intent-Centric Architecture and Marketplace

Discover how Intentable.io, formerly Kiroboflow, is revolutionizing blockchain interactions with its Intent-Centric Architecture and new marketplace for intent-based strategies.

Digital Assets

Crypto ETFs, retail trading spike as Bitcoin nears record highs

BlackRock’s spot bitcoin exchange-traded fund (ETF), which trades under the ticker IBIT on Nasdaq, saw a record amount of cash injection after a quiet few weeks of net outflows. The healthy metrics came as bitcoin briefly traded above the $71,000 level for the first time in a month.

<