Lewis Charles, the niche stockbroker and spread-betting service provider hit by £2m of potential losses following unauthorised trading at the end of July, has reached a settlement with insurers that has allowed it to resume its full range of services.

Stavros Loizou, chief executive, said the deal had led to an agreement with the London Stock Exchange for Lewis Charles to recommence the settlement of dealings through Pershing Securities after three months during which business had been severely curtailed.