In this blog, Daniel Tedd, Trainee Solicitor in the Financial Mis-Selling Team at Hugh James discusses the recent news of the London Trading Company being declared in default.
On the 10th of March 2023, the Financial Services Compensation Scheme (FSCS) declared the London Trading Company in default. The business traded under several different names including Lontrad, Lontrad Capital and TCM Wealth Management.
A declaration of default is made when the FSCS is satisfied that a firm cannot meet any eligible claims made against it.
The FSCS is funded by a levy imposed on the financial services industry. If a firm fails and cannot pay customers’ claims, they can seek compensation from the fund.
In the 2021/2022 financial year 108,838 customers were helped by the FSCS with £584m being paid in compensation to customers of defaulting firms.
The FSCS has confirmed that 23 claims in total have been lodged against the London Trading Company, all for unsuitable investment advice, mainly relating to self-invested personal pensions (SIPPs).
If you were a customer of Lontrad, Lontrad Capital or The London Trading Company and are concerned about the advice you received, then please contact us for a free initial consultation.
