London Capital & Finance investors start legal battle for payout - reports

FSCS decision to reimburse fifth of customers challenged

Investors who lost more than £200m in the London Capital & Finance (LCF) savings scandal have begun a legal battle after being refused a payout by the Financial Services Compensation Scheme.

According to a report from Yahoo! Finance, the judicial review case on behalf of LCF bondholders began at the High Court on Tuesday (19 January).   Lawyers acting for four of LCF's 11,600 customers are challenging a decision made last year by the FSCS to award compensation to only a fifth of customers after it ruled last that LCF had offered mini-bonds on a non-advised basis. 'We are profoundly sorry': FCA vows to change after damning LCF and Connaught reports The FSCS determined while LCF itself was regulated by the Financial Conduct Authority, its mini bonds were not. As a res...