London Capital Group (LCG) has admitted it could face compensation claims of £7.7m after an unfavourable early ruling by the FOS forced it to u-turn on a previous statement that redress costs would be "immaterial".
A FOS adjudicator has ruled LCG, the online trading company which is not to be confused with independent wealth management group London & Capital, must pay £0.1m in compensation plus interest to an investor in its managed spot FX fund. The claim relates to losses linked to commission rebating of the fund in the first half of 2009. LCG maintains its actions did not cause the client's loss. But in a stock exchange statement today, LCG says in total the fund to which the investor belonged lost £7.7m, and it admits it does not know to what extent it may be found liable for this total loss...
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