FSCS to shut LCF scheme on the finish of the month

The Monetary Companies Compensation Scheme will likely be closing the London Capital and Finance (LCF) compensation scheme on 31 October 2022.

The FSCS has been administering the scheme on behalf of the federal government since November 2021.

Because the scheme started, the FSCS have been capable of pay 99.5% of consumers eligible for compensation.

It has paid out a complete of £115m in compensation.

But there are a small variety of claims that thee FSCS has nonetheless not been capable of pay.

That is in instances the place the lifeboat fund requested info a number of instances however had no reply.

In different circumstances, the bondholders have handed away and the FSCS has not been capable of find their subsequent of kin.

The FSCS mentioned it might be able to pay these claims in distinctive circumstances after 31 October 2022.

Nevertheless it warned it could take longer to course of these claims and pay compensation.

The FSCS mentioned that individuals who acquired a cheque will nonetheless be capable to money it after 31 October 2022, so long as it’s cashed inside six months of the problem date.

The compensation scheme was initially scheduled to shut on 20 April 2022 however the FSCS needed to lengthen the deadline.

It is because it had 30 bonds left to pay to bondholders the place addresses or different particulars had been old-fashioned.

LCF bondholders have been common targets of scammers.

In January, the directors of LCF, Smith & Williamson, had been proven emails despatched to LCF bondholders by which LCF director Michael Thomson was being impersonated by unknown people.

In April, the FSCS warned that fraudsters utilizing the corporate names LC Holdings and Capital Finance had been approaching LCF bondholders.

The fraudsters had been claiming to have the ability to get compensation for the complete quantity of LCF investments.

The FSCS acknowledged that each corporations are scams and warned that there could also be others.

In Might, an LCF bondholder acquired a fraudulent letter claiming to be from Buying and selling Requirements.

The LCF compensation scheme has created a precedent in relation to mini-bond scandals.

Baroness Susan Kramer lately referred to as for a judge-led inquiry into the Blackmore Bond saga. She hopes it will lead victims to obtain a compensation as effectively.

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