The Financial Services Compensation Scheme (FSCS) is set to wind down the redress scheme aimed at paying back victims of London Capital & Finance (LCF) on behalf of the UK government.
The lifeboat scheme confirmed to International Adviser that this is because it has compensated all eligible bondholders so far.
In its annual report in July 2022, the FSCS revealed that it paid more than £114m ($137m, €135m) to around 9,000 mini-bond victims within six months.
But the lifeboat scheme said there are a small number of people who the FSCS has not been able to trace, as it believes the bondholders in question may have passed away and it has been unable to get in touch with any family members or people responsible for their estate.
As a result, the FSCS is urging anyone who many have a family member who invested in LCF and has since died without receiving any redress from the lifeboat scheme to get in touch as soon as possible.
The FSCS added that a closure date for the LCF redress scheme is not available just yet, but it will be published once all matters are finalised with HM Treasury.
History
LCF took £236m ($313.3m, €276m) of investors’ funds.
The firm issued “misleading” mini-bonds and Isas on a non-advised basis, promising 8% returns to clients.
The Financial Conduct Authority (FCA) has come under fire for its handling of the LCF scandal – but the UK regulator refused to accept two of the main issues highlighted in the Complaints Commissioner’s report.
