5 Apr 2012 14:55

London Capital Group plc
("LCG" or the "Company")
Complaints to the Financial Ombudsman update
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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.
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For further information, please contact: www.londoncapitalgroup.com
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London Capital Group Holdings plc
Simon Denham, Chief Executive Officer
020 7456 7000
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Cenkos Securities plc
Nicholas Wells
020 7397 8900
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Smithfield Consultants
John Kiely
020 7360 4900