High Court rules in favour of FSCS in LCF compensation battle

Judicial review

Sophie King
clock • 4 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

CII launches research community

CII launches research community

Voices to give professionals a stronger role in shaping policy

Sophia Panayi
clock 24 September 2026 • 1 min read
Andrew Goodwin: Three barriers to optimum vulnerable client outcomes

Andrew Goodwin: Three barriers to optimum vulnerable client outcomes

'It seems safe to say that vulnerability is likely to be commonplace'

Andrew Goodwin
clock 24 September 2026 • 4 min read
Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Working with Nicolas Hamilton, younger brother of F1 champion Lewis

Professional Adviser
clock 24 September 2026 • 1 min read