The United Kingdom’s Financial Services Compensation Scheme (FSCS) has issued a public notice that it has compensated victims of London Capital & Finance plc (LCF), which failed and went into administration in January 2019.
The UK financial services compensation fund acknowledged that it had “now paid out just over £56.3m in compensation to 2,878 LCF bondholders who held 3,815 LCF bonds.” The FSCS has added that they are “close to having identified and paid all LCF customers who we believe are eligible for FSCS compensation. We appreciate that LCF customers have been waiting patiently while we continue to review claims on a case by case basis. It has taken longer than we anticipated, as we have continued to identify and analyse 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.”
As reported by FinanceMagnates, the collapse of LCF affected some 12,000 investors for a total estimated loss of £236 million. As such, the compensation awarded to investors by the FSCS is only a fraction of the total losses, but nonetheless provides some remediation in this particular case.