FSCS keeps LCF compensation scheme open past deadline
The Financial Services Compensation Scheme (FSCS) is keeping the London Capital & Finance (LCF) compensation scheme open past its initial deadline, as it waits for documents from some remaining investors.
In total, the FSCS has paid out just over £114.5m in compensation to LCF investors. It has been administering the pay-out of the Treasury’s £120m compensation scheme which provides 80 per cent of LCF bondholders’ initial investment up to a maximum of £68,000.
The FSCS started contacting LCF investors about compensation under the scheme in November last year and at the time said it expected to have made all payments by 20 April 2022.
The organisation missed this deadline and is keeping the scheme open as it pays out the 30 bonds left.
The FSCS said these are for investors where addresses or other details were out of date and it is waiting to receive documents so it can verify new details in order to pay compensation.
On 14 April, the organisation said it had paid £114m with 88 bonds left to pay
The FSCS said it also has 93 cheques to be re-issued, up from 64 on 14 April, where bondholders have received a cheque and then let FSCS know their details have changed, including where bondholders have passed away and the compensation needs to be paid to their estate.
Read more: FSCS urges LCF investors to check their spam folders
Read more: A timeline of FSCS payments to LCF investors
“We aren’t closing the scheme whilst we continue to work on these final bonds, and we’ve also asked bondholders to call us if they don’t receive a cheque by the end of April, so that we can make sure all the cheques arrive safely,” a spokesperson from the FSCS told Peer2Peer Finance News.
“In some cases, it can take multiple attempts to get in touch with a bondholder so that we can get the information we need, so it’s not always a quick resolution.
“We will continue to put updates on the dedicated LCF page on our website as these final bonds are completed and paid.”
Over 11,000 LCF investors were left with £237m in losses when LCF entered into administration in January 2019.
