Investors Given Hope of Compensation on London Capital & Finance

Lawyers investigating the London Capital & Finance scandal are aiming to bring claims against the UK’s financial compensation scheme on behalf of the 11,600 investors hit by the company’s collapse, the Financial Times reported. LCF’s administrators and insolvency experts from the law firm Mishcon de Reya are combing through recordings of phone calls between customers and representatives of the company in search of proof that investors were advised to buy the mini-bonds. Such proof could mean bondholders are eligible for up to £50,000 each under the industry-funded Financial Services Compensation Scheme after LCF collapsed in January with £236m of investors’ money, prompting a criminal investigation. Guy Wilkes, a finance disputes partner at Mishcon, said “advice” might comprise a personal recommendation from a salesperson that LCF’s mini-bonds suited a customer’s needs, or an opinion on their level of risk. Read more