View the article online at http://citywire.co.uk/new-model-adviser/article/a660152
Trading platform pays out £1.2m over Integrity complaints
by Daniel Grote on Feb 20, 2013 at 08:21
London Capital Group has paid out £1.2 million to investors who held a foreign exchange fund marketed by Integrity Financial Solutions on its platform, as provisions against Financial Ombudsman Service (FOS) claims continue to mount.
The trading platform has made the payout as part of a settlement struck with investors, which it said around a quarter of outstanding complainants had agreed to.
London Capital has made a £2.3 million additional provision for FOS claims over 2012, on top of the £3.2 million provision it began the year with.
It said it was also fighting a legal claim relating to the fund. London Capital held the fund on its platform, and in 2009 made commission rebating errors, which led to a series of complaints to the FOS.
It said it had received a claim ‘in relation to the termination of a fee-sharing agreement with Integrity’, adding: ‘On the basis of legal advice received, the group views the claim as speculative and without merit. No provision has therefore been made in relation to the matter.’
Integrity Financial Solutions was censured by the Financial Services Authority in 2010 over its sale of geared traded endowment policies.
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