The Financial Services Compensation Scheme (FSCS) has announced that it will be closing the London Capital & Finance (LCF) compensation scheme that it has been administrating on behalf of the government on 31 October 2022.
The lifeboat fund said that since it began offering compensation to bondholders on 25 November 2021, it has been able to successfully pay 99.5% of eligible customers. In total, £115m has been paid out in compensation, it said. It added that it had a "small number" of outstanding claims left to pay where it has requested information multiple times without reply, or where the bondholder has passed away and it has been unable to locate their next of kin. "We may be able to pay these claims in exceptional circumstances after 31 October 2022. However, as the government scheme is closing...
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