Almost 300 London Capital & Finance (LCF) bondholders will not be able to claim compensation from the Financial Services Compensation Scheme (FSCS) as they dealt with the business before it was authorised in June 2016.
However, the FSCS said it would protect the 159 bondholders who switched from stocks and shares ISAs to LCF bonds. The FSCS said it would pay compensation to these customers by the end of February 2020. However, it said it was unable to protect the 283 bondholders who dealt with LCF before it was authorised to carry out financial services business (on 7 June 2016). The body maintains that the act of issuing mini bonds was "not a regulated activity", and is therefore not something FSCS protects, it has concluded there will be some customers who were given "misleading advice" by LCF an...
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