LONDON (Reuters) - Some investors in collapsed firm London Capital & Finance could be entitled to payouts for their losses, Britain’s financial compensation scheme said on Friday.
The Financial Services Compensation Scheme (FSCS) said some people who put money into LCF, which went into administration in January with losses of up to 237 million pounds from unregulated “mini bond” investments, may be entitled to claim as they were provided with misleading advice.
The watchdog said it was too early to say how much may be paid out, and further investigations over a number of months would be needed to establish how many LCF customers will be impacted.
FSCS said it believes Surge Financial Ltd, acting on behalf of LCF, provided a number of LCF clients with misleading advice.
Nearly 12,000 investors had put money into the firm before it collapsed in January.
FSCS has invited LCF customers to complete a pre-application questionnaire posted on its website to better understand their claims.
Reporting by Iain Withers; Editing by Rachel Armstrong