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

Advisers concerned clients are being misled by AI - research

Advisers concerned clients are being misled by AI - research

More than two thirds flag concerns about clients turning to AI for financial advice

Sophia Panayi
clock 04 June 2026 • 1 min read
Standing out from the crowd: WIFA entry tips from judge Gillian Hepburn

Standing out from the crowd: WIFA entry tips from judge Gillian Hepburn

'The number of outstanding entries always makes judging challenging'

Gillian Hepburn
clock 04 June 2026 • 4 min read
Advisers report under 50s make up growing chunk of client banks

Advisers report under 50s make up growing chunk of client banks

Under 40s make up almost a third, FE Fundinfo research finds

Sophia Panayi
clock 02 June 2026 • 2 min read