The Financial Services Compensation Scheme is a step closer to accepting compensation claims from London Capital and Finance investors.
Surge, the marketing firm used by the collapsed mini-bond provider, has agreed to share information with the lifeboat fund.
The FSCS says “it will be some time until [it] is ready to make any further announcements on the process”, as it does not have all the information to start accepting claims.
“A cooperative meeting” between FSCS and Surge took place within the last month, an update published today reveals.
Surge, which is thought to have sourced and “advised” investors for LC&F has agreed to provide further information to help the FSCS investigation.
An FSCS spokeswoman did not comment on the nature of information as the investigation is still ongoing.
However, bondholder communication from LC&F administrators Smith and Williamson showed that “the joint administrators do not yet have access to the call recordings database of calls between the LC&F or Surge employees and bondholders in relation to their investments.”
The administrators previously revealed that the FSCS is taking steps to secure call recordings.
Surge employees acted as representatives of LC&F and FSCS has already revealed its investigation found a “number of cases” where the marketing firm “gave advice” to investors.
Last month, FSCS said it was satisfied that LC&F “is vicariously liable for Surge’s actions”.
It deemed Surge, which is not regulated by the FCA, acted as an “LC&F agent with actual or ostensible authority”.
Surge took 25 per cent commission on investors funds, making some £60m.
The FSCS fact-finding questionnaire into how Surge employees recommended LC&F mini-bonds has been completed by almost half of the investors since it went live last month.
A total of 5,500 investors out of 11,500 investors have completed the survey.
The FSCS has encouraged the remaining bondholders to do the same.