LCM Family Limited enters administration

LCM is still authorised and supervised by the FCA. The firm must still comply with the FCA’s rules.

The joint administrators are authorised to act as licensed insolvency practitioners by their authorising bodies (Insolvency Practitioners Association – Gary Shankland and The Institute of Chartered Accountants in England and Wales – Louise Longley). The joint administrators are officers of the court and are required to comply with all insolvency law.

The joint administrators are responsible for acting in the best interests of the people who are owed money by LCM, and they must work as quickly and efficiently as possible.

As the regulator of LCM, we will continue to engage with the joint administrators and take any necessary actions to seek the best outcome for customers.

LCM can no longer conduct regulated activities. It will no longer be able to act for new or existing customers.

The requirements agreed with the FCA also stopped it from dealing with or disposing of any of its assets and any customer assets or money without the FCA consent.

The FCA recognises that many customers have concerns about their investments. The joint administrators are now in control of the firm. They will assess LCM’s financial position and decide how to proceed with the administration.

If you consider you are affected by LCM entering into administration, you can reach out to the joint administrators using the contact details above.

Customers who need free, impartial guidance about their finances can get help from MoneyHelper.

LCM does not hold customer funds directly, instead it used third party custodians. Customers should reach out to the joint administrators, using the above contact details in the first instance for information on their money, portfolios, and the value of investments.

Customers should contact the joint administrators if they are concerned about the advice or service they have received from the firm.

If you’ve made a complaint against LCM, you may have a claim as a creditor. However, as it is insolvent, it will likely not have sufficient money to pay in full any compensation to customers where compensation is due.

This includes customers:

• Waiting for a response to their complaint.
• Who have received a final response letter from LCM with an offer of compensation but haven’t returned it.
• Who have taken their complaint to the Financial Ombudsman Service.

You should first contact the joint administrators for more details about how complaints or claims will be dealt with.

If you’ve already referred a complaint to the Financial Ombudsman, you don’t need to take any action at the moment. The Financial Ombudsman will contact you in due course regarding the next steps.

The Financial Services Compensation Scheme (FSCS) protects consumers when financial services firms fail. It is the compensation scheme for customers of UK authorised financial services firms.

FSCS is investigating the firm to determine whether claims meet the qualifying conditions for compensation. FSCS can pay compensation of  up to  £85,000 per eligible person, per firm. Find out more about what the FSCS covers and compensation limits.

The FSCS decides which cases meet these conditions. The joint administrators will work with the FSCS to decide who is eligible.

The FSCS is open to claims and further FSCS information about LCM is available on the FSCS website.

A claims management company (CMC) may approach you offering to help you bring a claim.

You should proceed with caution if you are approached by one of these companies.

For most customers, there will be no benefit in involving a third party to make a claim against LCM.

If you use a CMC to make a claim, they are likely to seek a fee, which may reduce how much you get back.

If you’re considering using a CMC, you should first discuss it with the joint administrators.

All customers should remain alert to the possibility of fraud.

If you get an unexpected phone call from someone claiming to be from LCM, BTG Begbies Traynor (Central) LLP or the FCA, end the call and contact the relevant party directly.

Find out more about protecting yourself from scams.