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The Financial Conduct Authority (FCA) has been criticised for allowing Lloyds Banking Group to set up a “flawed” compensation scheme for victims of a massive fraud.

The SME Alliance, which represents small firms ruined in the fraud, has filed an official complaint with FCA.

It accuses Lloyds of covering up its awareness of criminality and excluding some victims from compensation.

This latest ramping up of the pressure on Lloyds is reported on in depth by both THE BBC and the INDEPENDENT