FSCS closes London Capital & Finance scandal after three years

FSCS has referred to as on the households of victims of the collapse of mini-bond firm London Capital & Finance (LCF) to get in contact with the lifeboat fund because the case nears closure. It added that there are a small variety of claims that weren’t paid out the place the system requested data a number of occasions however had no reply or the place the bondholder has handed away and FSCS haven’t been in a position to find their subsequent of kin.

Around 12,500 buyers suffered main losses following the £236 million collapse of the mini-bond issuer two years in the past. London Capital & Finance plc (LCF) went into administration on 30 January 2019 and FSCS declared it had failed a yr later. The authority has been administering the scheme on behalf of the federal government since November 2021.

Since the scheme started, FSCS stated it has paid over £115 million in compensation to 12,330 buyers, or 99.5% of shoppers eligible for compensation. Of this determine, FSCS has contacted greater than 700 bondholders with particulars of their compensation for the reason that scheme offered its final replace in April. The final instalment was paid below a authorities’s redress scheme to reimburse eligible LCF victims.

To kickstart with the method, the FSCS reviewed virtually one million items of proof as a way to decide which clients had been given deceptive recommendation by LCF. It has additionally gained entry to a further 100,000 emails held inside LCF’s electronic mail server, which prolonged the time-frame to finish the method past the unique deadlines.

“We could possibly pay these claims in distinctive circumstances after 31 October 2022. However, as the federal government scheme is closing, it might take us longer to course of these claims and pay compensation. You can discover extra data within the pop-up FAQ. If you’ve got just lately acquired a cheque, you’ll nonetheless have the ability to money it after 31 October 2022, so long as it’s cashed inside six months of the difficulty date,” the assertion reads.

The government-funded scheme is accessible to all particular person bondholders who haven’t already compensated by the FSCS. Per the proposed phrases, the federal government would pay 80 % of the compensation, as much as a most of £68,000, that LCF clients would have acquired in the event that they had been eligible for FSCS safety.