The FCA has rejected calls from an independent commissioner to pay more compensation to victims of the £237m London Capital & Finance investment scandal.
In a move that risks a backlash from victims of the debacle, the Financial Conduct Authority said it did not accept a recommendation made by the Financial Regulators Complaints Commissioner that it should scrap its previous redress decisions and rerun its compensation process.
The regulator has paid a mere £34,020 to just four people who complained about the way it handled London Capital & Finance.
That compares with £58.3m in redress distributed by the Financial Services Compensation Scheme and £109.4m so far paid out by the government from a special pot set up to compensate victims of the scandal.
