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Trading platform set to complete Integrity FOS payouts
by Alex Steger on Jan 22, 2014 at 08:44
London Capital Group plans to complete paying out on Financial Ombudsman Services (FOS) claims from investors who held a foreign exchange fund marketed by Integrity Financial Solutions on its platform, within the first quarter of 2014.
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.
For the year ended 31 December 2013, London Capital had a provision of £4.9 million set aside to cover FOS claims.
It said the 2013 charge for the FOS claims was £1.6 million, but that the claims would be 'materially completed' in the first quarter of 2014.
Integrity Financial Solutions was censured by the Financial Services Authority in 2010 over its sale of geared traded endowment policies.
London Capital profits for 2013 before tax and costs related to Integrity and the FOS are expected to be £2.4 million, up from a loss of £200,000 the year before.
London Capital, chief executive Kevin Ashby, said the company had resolved its legacy issues.
‘2013 was a year of refocusing and reorganising the business as well as resolving a number of legacy issues,’ he said.
‘I am also pleased that we have been able to conclude the Integrity claim to our satisfaction and that the settlement of the FOS claims will be materially completed in the first quarter of 2014.’
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on Jul 24, 2014 at 13:22