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London Capital Group (LCG)

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Thursday 05 April, 2012

London Capital Group

Complaints to the Financial Ombudsman update

RNS Number : 9480A
London Capital Group Holdings PLC
05 April 2012
 



London Capital Group plc

("LCG" or the "Company")

Complaints to the Financial Ombudsman update

 

As previously disclosed, LCG has been responding to a query from the Financial Ombudsman Service ("FOS") pertaining to commission rebating of a managed spot FX fund which occurred in H1 09.  The query was in relation to complaints from clients that had participated in the programme.

The Company has, today, received a judgement from the FOS that clients previously not determined to be under the protection of FOS would be considered for compensation.  This has led to the Company recognising as a provision £1.9m of the £3.3m contingent liability. The charge will be recognised as an exceptional item in the 2012 results.  The Company is well capitalised and had net cash resources of £25.1m at 31 December 2011.

The Company continues to challenge the assessment and, although the Directors are confident that there are grounds for challenge, the outcome of this process continues to be uncertain.

 

For further information, please contact:    www.londoncapitalgroup.com

 

London Capital Group Holdings plc   

Simon Denham, Chief Executive Officer

020 7456 7000

 

Cenkos Securities plc

Nicholas Wells

020 7397 8900

 

Smithfield Consultants   

John Kiely

020 7360 4900


This information is provided by RNS
The company news service from the London Stock Exchange
 
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