FCA has published a statement confirming the broad approach it intends to take to complaints made specifically to it in relation to London Capital & Finance (LCF). This approach will reflect what FCA considers appropriate in individual cases in accordance with the approach set out in its Complaints Scheme, remedies statement, and the statutory framework by which FCA is bound.
To this end, FCA has conducted an initial review of LCF investors’ direct communications with it between 1 April 2014 and 10 December 2018, the date of the FCA’s first regulatory intervention. FCA has then identified investors who were given incorrect information in these direct communications with the FCA which may have led them to conclude their investment would be safer than it was. Given the exceptional circumstances FCA intends to offer ex gratia payments to the small number of investors who fall into this category who have not already been compensated by the Financial Services Compensation Scheme (FSCS).
FCA will be proactively contacting those investors directly to discuss the details of the payments and how they will interact with the government compensation scheme and any payments made by the FSCS.
Complaints by other investors will be considered individually in accordance with the Complaints Scheme. FCA has stated that it does not expect to make ex gratia compensatory payments to these investors, but will still be writing to the majority of them, acknowledging FCA’s errors, reiterating FCA’s apology and ensuring these investors have full information about the government scheme.
FCA anticipates being able to provide a response to complainants by the end of June.