London Capital & Finance investors could start receiving compensation this month
Investors in collapsed mini-bond firm London Capital & Finance (LCF) could start receiving compensation this month.
The Financial Services Compensation Scheme (FSCS) said today it would start issuing decisions on LCF claims relating to misleading advice given to its customers before the end of May.
It said it had already started reviewing individuals claims and said it expected to have finished the exercise by September.
FSCS said once a decision had been made on a claim, it would send a letter to the customer to inform them of the outcome.
If they are eligible for compensation, they will be sent a cheque, the FSCS said.
The FSCS said in January that it would protect 159 LCF bondholders who switched from stocks and shares ISAs to LCF bonds.
It said other customers of LCF would only be eligible if they could prove they were given misleading advice by LCF.
Mini-bond firm LCF collapsed in January 2019 owing £236m to more than 11,000 investors.
Caroline Rainbird, FSCS’s chief executive, said: “We appreciate that this process has been a lengthy one, and that for many LCF customers the wait is not yet over. We want to reassure LCF customers that we are continuing to work tirelessly to bring this process to a conclusion and ensure that those customers who are entitled to compensation receive it.”
“Whilst FSCS is aware there are some customers who were given misleading advice, and will therefore be entitled to compensation, FSCS still expects that a large proportion of LCF customers will not be eligible for compensation on this basis.
“FSCS will provide a further update on its progress before the end of June.”