The Financial Services Compensation Scheme (FSCS) is set to deal with thousands of compensation claims related to the collapse of broker MF Global, with more expected.
It has sent compensation application forms to 4,000 British investors with individual accounts, allowing them to make a claim.
Customers with joint accounts and private individuals are expected to be contacted by the end of the week. Others will receive the forms later this month.
MF Global filed for bankruptcy protection in New York last October after a disastrous $6.3bn bet on European government debt.
KPMG, the special administrators of MF Global UK, recently announced customers will start to receive dividend payments in relation to client money claims, and the FSCS has been working with the company to obtain the required data relating to customers' accounts.
The FSCS has not yet calculated the cost of compensating the customers and did not factor it into the levy and expected interim levies in its recent plan and budget.
The shortfall in funds available to pay back customers in MF Global is expected to be at least $1.6bn globally, with $700m still in dispute with UK entity, according to Reuters.
The FSCS can only pay up to £50,000 in compensation per person and will take into account any dividend payments made by the special administrators to customers when making compensation payments.
Alzheimer’s is the most common cause of dementia
Total of 72 accredited firms
23% fall since Q1
Achievements, charity work and other happy snippets
Including advice firm Chadkirk WM