FSCS Paid over £114M Under Government LCF Compensation Scheme

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 paid compensation for 12,330 bonds under the government's LCF compensation scheme, totalling over £114m.

London Capital & Finance plc (LCF) went into administration on 30 January 2019 and FSCS declared it had failed on 9 January 2020. By 19 April 2021, FSCS had paid over £57.6m to 2,871 bondholders who were eligible for compensation.

On 19 April 2021, the government announced the details of a one-off compensation scheme. This scheme will provide compensation to eligible bondholders who FSCS couldn't compensate. FSCS is administering this scheme on behalf of the government, and will pay compensation to all eligible bondholders by 20 April 2022.

"We are now a few days away from the 20 April and have 88 bonds still to pay,"FSCS said."We will issue cheques for 37 of these in the next few days, the remaining 51 are cases where we have requested documents that have not yet been provided. These cheques will be issued as soon as we have everything we need."

"We also have 68 cheques that have already been sent but need re-issuing, for example where a bondholder has changed their name or address. Those will also go out as soon as we can verify the new details."