FSCS Paid £56.3M in Compensation to LCF Bondholders

The Financial Services Compensation Scheme (FSCS), the UK's statutory Deposit insurance and investors compensation scheme for customers of authorised financial services firms, recently announced that it has paid out just over £56.3m in compensation to 2,878 LCF bondholders who held 3,815 LCF bonds.

The compensation agency said:“We are close to having identified and paid all LCF customers who we believe are eligible for FSCS compensation. It has taken longer than we anticipated, as we have continued to identify and analyze more evidence, which could result in us protecting more customers. We remain committed to ensuring that each piece of evidence and each claim gets the attention it deserves.”

The LCF went into administration on 30 January 2019 and FSCS declared it had failed on 9 January 2020, affecting around 12,000 investors, who suffered a combined loss of £236 million.

“Those LCF customers who are still waiting for a decision do not need to contact us or take any action at this stage. Once our review of claims is complete we will await the outcome of the Judicial Review on LCF before confirming the next steps for those LCF customers who have not received FSCS compensation,” FSCS further added.