The UK Financial Services Compensation Scheme (FSCS) today provided an update on the London Capital & Finance matter.
The body says it is still contacting LCF bondholders who have yet to receive compensation, but if you were expecting to hear from FSCS and have not, please check your spam or junk folder. Please add emails from FSCS to your ‘trusted’ or ‘safe senders’ list to ensure they go to your inbox.
FSCS will also be contacting bondholders who received more than £68,000 in FSCS compensation. Under the scheme rules set by the government, compensation is set at 80% of bondholders’ original investment, up to a maximum of £68,000. Anyone who received more than this from FSCS is not eligible for further compensation.
The Scheme also warned of possible scams:
“If you’re concerned about scams, remember that we will never ask for money, nor will we contact you via social media. Be wary of any emails, letters or calls claiming to be from LCF or someone else offering to help get access to compensation. If you’re unsure if a call from FSCS is genuine, hang up and contact us directly using the information on our Contact us page”.
In February, FSCS said it had written to just under 8,500 people in total, issuing cheques for over 11,500 bonds totalling £105 million.
The body still has around 700 bondholders to contact, and it is working hard to get this done as soon as possible. Everyone is set to receive their offer by 20 April.
London Capital & Finance (LCF) was a Financial Conduct Authority (FCA) authorised firm which issued unregulated non-transferable debt securities, commonly known as ‘mini-bonds’, to investors and then speculatively invested the funds received in a number of underlying businesses. LCF went into administration in January 2019 and at the point of failure 11,625 bondholders had invested around £237 million.