The United Kingdom’s Financial Services Compensation Scheme (FSCS) provided another update on the ongoing compensation to the victims of collapsed London Capital & Finance (LCF), saying it has distributed £105 million to date.
The agency has contacted more than 700 new bondholders since December 2021, when it issued the last update, to distribute the compensation.
“Since our last update in December, FSCS has contacted more than 700 additional bondholders with details of their compensation under the government scheme,” the FSCS stated.
“This means that we have now written to just under 8,500 people in total, issuing cheques for over 11,500 bonds totalling £105m.”
The UK agency still needs to contact and compensate around 700 more bondholders. It has assured that the process will be fast, and the bondholders will receive offers by April 20.
The Collapse of a Massive Scheme
LCF collapsed in 2019, affecting around 12,000 investors who suffered a combined loss of £236 million. The compensated amount is only a fraction of the total loss.
Though initially, FSCS distributed around £57 million in compensation to 2,878 bondholders of the collapsed financial scheme, the UK’s Treasury Department announced a new government scheme last April to compensate 80 percent of LCF bondholders’ initial investment up to a maximum of £68,000.
“FSCS may contact you by phone if we need to speak to you about your compensation, but please remember that you do not need to speak to anyone other than FSCS about it. We won’t use social media to get in touch with you, and we won’t ever ask you for money,” FSCS warned the bondholders as scams around the collapsed scheme are rampant.
