The High Court has ruled that London Capital & Finance (LCF) customers who took unregulated financial advice will not get compensation from the Financial Services Compensation Scheme (FSCS).
The court agreed with the FSCS's conclusion that the issuing of bonds by LCF after 3 January 2018 was unregulated activity. The compensation scheme said: "FSCS's decision meant that bondholders who took out bonds with LCF without another regulated activity taking place, e.g. without being advised by LCF to invest in their bonds, were unable to receive any compensation from FSCS under the rules set out by the regulators. "The claimants wanted the court to overrule FSCS's decision, but the court has now rejected the claimants' legal arguments. To allow these LCF customers to have their...
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