Law firm Shearman & Sterling has applied for a judicial review into the FSCS’s handling of compensation for victims of the £236m London Capital & Finance mini-bond firm.

The Financial Services Compensation Scheme has warned that there is a ‘high risk’ of a supplementary £46m levy on advisers and providers.

The FCA is to ban the ‘mass marketing’ of speculative mini-bonds following the recent debacle which saw mini-bond provider London Capital & Finance go bust earlier this year owing £236m to 14,000 bondholders.

Further details of the Independent Investigation into London Capital and Finance have been revealed by the FCA.