UK financial compensation scheme says investors could have grounds for a claim, reversing earlier stance.Read more
Thousands of people who invested in London Capital & Finance could get compensation after all.
The Financial Services Compensation Scheme is asking LCF customers to register for updates on its website while it explores whether there are grounds for compensation for some investors who lost out when the firm went into administration.
It says the core of LCF's activity - issuing unregulated mini-bonds in the UK - was not protected by FSCS but they are now focusing on "whether there was any regulated advising, arranging or other activities which may trigger our compensation".
However the FSCS warned it was "a highly intricate case" and their investigation was likely to take some time.
Administrators said in March investors could get as little as 20% of their money back.
You can read more about LCF's collapse here.
BBC Radio 4
Some 11,605 people invested a total of £236m with London Capital and Finance PLC (LCF).
It collapsed into administration in January following an investigation by the Financial Conduct Authority (FCA) into misleading advertising.
Amanda Cunningham was one of those savers and has been speaking to Money Box. She lives near Burnley and says her son "will not have money for his future".
Read more on this story here.
The Serious Fraud Office, working in conjunction with the Financial Conduct Authority, said it had opened an investigation into individuals associated with London Capital & Finance.
On 4 March 2019, four individuals were arrested in the Kent and Sussex areas, the SFO said.
All four individuals have been released pending further investigation, the SFO said.
The SFO said members of the public who have invested in this scheme over the period 2016 to 2018 should get in touch.