London Capital & Finance investors to start getting decisions on compensation claims this month

Former_MSE_Naomi

Investors who lost £1,000s with the collapsed bond firm London Capital & Finance (LCF) will start hearing whether they're eligible for compensation for claims related to misleading advice later this month...

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'London Capital & Finance investors to start getting decisions on compensation claims this month'

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dunstonh

Hopefully, the investors will be told that they are not eligible for compensation.  

I know that sounds harsh but we need to remember that LC&F were not authorised or regulated to give advice.  The investment they retailed was not regulated either.     LC&F did not pay levies to the FSCS covering either the product provider or adviser fee blocks.  

If it is decided that the FSCS should pay up then its the genuine firms that foot the bill. The ones that do pay the levies.  And it will be the normal retail clients and customers that end up paying for it via their charges and fees.

We cannot keep compensating people for their bad decisions.  Especially when the money to compensate them comes from innocent parties who did not make bad decisions.

expectless

I understand your sentiment BUT investors will only be compensated if it is found they were given advice from representatives of an FCA regulated company and for the most part on products HMRC had authorised as ISAs. Maybe FSCS shouldn’t be the vehicle for compensation but there appears to be no other option if your investment company is bogus and misappropriation is facilitated and compounded by poor regulation.

Malthusian

dunstonh said:

Hopefully, the investors will be told that they are not eligible for compensation.  

I know that sounds harsh but we need to remember that LC&F were not authorised or regulated to give advice. 

Nor were Independent Portfolio Managers (Secured Energy Bonds / Providence Bonds) or Basset & Gold, and it didn't stop the FSCS bailing out their investors.

We cannot keep compensating people for their bad decisions. 

If you are willing to run an IFA business in the UK then apparently you can. For IFAs and others in the intermediary sub-class, the FSCS is effectively a protection racket. You pay levies so the FSCS can funnel them to Ponzi scammers, using suckers' bank accounts as a conduit.

Especially when the moneyto compensate them comes from innocent parties who did not make bad decisions.

Has to come from somewhere, and it's hardly going to come from the people who gave their money to Ponzi scammers.