FSCS Announced Completion of Investigation into B&G Finance

​The Financial Services Compensation Scheme (FSCS), the UK's statutory Deposit insurance and investors compensation scheme for customers of authorised financial services firms, announced that it has completed the investigation into B&G Finance.

According to the update, FSCS says it has now moved all claims submitted to its claims processing teams for assessment.

Since B&G Finance Ltd failed and entered administration on April 1, 2020, FSCS has been working closely with the administrators.

From January 2, 2018, B&G Finance Ltd arranged and promoted mini-bonds on behalf of Basset & Gold Plc, which issued the mini-bonds. FSCS has determined that due to mis-selling of these mini-bonds, many Basset & Gold bondholders who bought their mini-bonds through B&G Finance Ltd may be able to claim compensation up to the £85,000 limit.

While this investigation may share similarities with London Capital & Finance, B&G Finance Ltd operated under a different structure. It did not issue its own bonds but arranged for customers to buy bonds issued by a different firm.

Although Basset & Gold Plc has also entered administration, FSCS is unlikely to be able to pay compensation based purely on Basset & Gold Plc’s failure to repay the bonds, as issuing bonds is not normally a regulated activity.