FSCS contacts 700 more LCF investors

The Financial Services Compensation Scheme (FSCS) has written to another 700 London Capital & Finance (LCF) bondholders since mid-December about compensation under the government’s scheme.

In total the FSCS has contacted 8,500 people, issuing cheques for over 11,500 bonds totalling £105m and said it is working hard to reach out to the remaining 700 bondholders as soon as possible.

Read more: Deadline extended for complaints about LCF supervision

The FSCS said that everyone will receive their offer by 20 April.

It said that investors who have recently moved to a new address should let it know and investors should be aware of scammers that may claim to be from LCF or offer help to access compensation.  If unsure at any time, hang up and contact the FSCS directly, the organisation added.

In April last year, the Treasury announced it will establish a scheme that provides 80 per cent of LCF bondholders’ initial investment up to a maximum of £68,000 and said it expected to pay out around £120m in compensation to about 8,800 people in total. The FSCS has been administering the payout of the compensation from the scheme.

Read more: FCA opens review of compensation scheme

Separately to the scheme, the FSCS has already paid out £57.6m in redress for customers which it believes had bad advice but stopped short of offering further payments.

Over 11,000 LCF investors were left with £237m in losses when the mini-bond provider entered into administration in January 2019.

Read more: LCF redress may be only time the Treasury steps in for investors