The Financial Conduct Authority has agreed to remove capital asset restrictions imposed on Lighthouse at the height of the Arch Cru and Keydata debacle.
The restrictions had been in place since 2012, several years after the issues with these investments came to the fore.
In an update to the London Stock Exchange, Lighthouse said it had net cash of £8.1m as of the end of June, up from £7.5m at the same time last year.
It said this showed the company had a “strong balance sheet” and the FCA’s decision “underlines the progress made in recent years”.
In the update Lighthouse also said assets under management sponsored by Luceo Asset Management, a wholly-owned subsidiary of Lighthouse, had reached £20m.
It said investment flows at Luceo were now approaching £1m a week.
Lighthouse said it has continued to trade positively and is “significantly ahead” of first six months of last year.
In the statement Lighthouse said: “Gross revenues and adviser productivity benefited from the group's affinity relationships and from the increasing focus on the benefits of pensions freedom and flexibility by individuals and corporates within the UK.
“The board is pleased with trading to date in 2017 and is confident of further progress over the remainder of the year.”
The company said it would announce its half-year results in early September.
Keydata Investment Services designed and sold life settlement policy-based investment products to retail investors via independent financial advisers.
Products were underpinned by investments in bonds issued by Luxembourg vehicles SLS Capital and Lifemark.
Keydata collapsed in 2009 at a cost of hundreds of millions of pounds to the industry in compensation to investors who lost their life savings.
Meanwhile the CF Arch Cru funds represent two Oeics, both of which are umbrella companies for six sub-funds. The sub-funds were substantially invested in a combination of 21 cell companies incorporated in Guernsey, which were in turn invested in various assets.
In March 2009 the Financial Services Authority suspended the funds on the grounds of insufficient liquidity to meet redemptions.