The Financial Services Compensation Scheme has today urged London Capital and Finance customers to register for updates as it explores possible grounds for compensation.
A total 11,500 investors lost £237m after LC&F fell into default in January with some investors blaming the FCA’s investigation of the firm for its collapse.
In the update the FSCS says it is keen to ensure LCF customers are kept informed as it explores whether there are grounds for compensation.
The promotional materials that have been reviewed stated that the LCF mini-bonds were not FSCS protected but the lifeboat fund says it is now investigating whether regulated activities were in fact carried out.
If regulated activity was carried out, then this would give rise to a claim and the FSCS says it needs to have a better understanding of the relationship between LCF and Surge Financial Ltd.
A spokesperson for FSCS says: “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.”