Victims of the London Capital & Finance scandal argue that the firm should have been subject to greater regulatory oversightA judicial review of a decision to limit compensation for victims of the London Capital & Finance will go ahead after an attempt to have the case dismissed was rejected. The Financial Services Compensation Scheme (FSCS) is only paying compensation to a minority of LCF investors on the basis that the nature of the bonds it sold was subject to limited regulatory oversight. The argument put forward by investors that FSCS’s decision was based on “errors of law” will be tested in court after the administrative court granted permission for a judicial review to proceed. LCF, which was established in 2012, failed in January 2019 after the Financial Conduct Authority (FCA) said that it was misleadingly promoting high-risk bonds. At the point of its collapse,

Source: The Times September 07, 2020 23:15 UTC