The Financial Services Compensation Scheme (FSCS) has set 31 October 2022 as the last day to terminate its scheme to compensate investors for losses in the London Capital & Finance scandal.
The FSCS has called on the families of victims of the collapse of mini-bond firm London Capital & Finance (LCF) to contact the Lifeboat Fund as the case draws to a close. It added that a small number of claims were not paid when the system repeatedly requested information and received no response, or when a bondholder died and the FSCS was unable to identify any next of kin.
Some 12,500 investors suffered heavy losses after a £236m mini bond issuer collapsed two years ago. London Capital & Finance plc (LCF) took control on 30 January 2019 and the FSCS declared him bankrupt after a year. The authorities are managing the scheme on behalf of the government from November 2021.
Since the scheme’s inception, FSCS said it has paid over £115m in compensation to 12,330 investors, or 99.5% of eligible customers. Of this figure, the FSCS has contacted more than 700 bondholders with compensation details since the scheme provided his April update. The final installment was paid under the government’s relief plan to compensate her LCF victims who are eligible.
To begin this process, FSCS reviewed nearly a million pieces of evidence to determine which customers received misleading advice from LCF. It also gave him access to an additional 100,000 emails held within LCF’s email servers, giving him an extended timeframe to complete the process beyond the original deadline.
“After October 31, 2022, we may be able to pay these claims in exceptional circumstances. Please see our pop-up FAQ for more information.If you recently received a check, you can still cash it after October 31, 2022, as long as you cash it within 6 months of the issue date. increase.
The government-funded scheme is available to all individual bondholders who have not yet been insured by the FSCS. Under the terms proposed, the government would pay up to £68,000, 80% of the compensation an LCF client would receive if she were eligible for FSCS protection.