The UK Financial Services Compensation Scheme (FSCS) has opened a registration process for customers of failed investment firm London Capital & Finance (LCF).
After registering with the lifeboat scheme, customers will be regularly updated with its quest to determine if they have grounds for compensation.
This comes days after the Financial Conduct Authority told clients to contact FSCS about refunds.
Current status
The promotional materials the FSCS has reviewed stated that the LCF mini bonds that were offered to investors were not protected by the scheme.
However, after further analysis of LCF’s business practices, investment materials, and calls recorded with investors, the FSCS is now investigating whether regulated activities were, in fact, carried out; which might give rise to claims.
It said: “This work and our legal analysis supports our view that LCF’s core activity of issuing their mini-bonds in the UK is not protected but that there are further issues that need examining.”
The FSCS is focusing on whether there was any regulated advising, arranging or other activities, which may trigger compensation.
Utmost urgency
A spokesperson for the FSCS said: “It is clear that LCF investors were badly let down so to help we want to be as transparent as possible over our process.
“By registering with us they will get regular updates on our investigation and this will be the best way for them to hear whether we believe there are grounds for compensation.
“This is a highly intricate case though, so we expect our investigation may take some time.
“We appreciate investors’ need for certainty so we can assure them that we are treating the case with the utmost urgency.”
