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.