700 bondholders in LCF were paid under government scheme

abdelaziz Fathi

Britain’s Financial Services Compensation Scheme (FSCS) said today it has paid over £105 million in compensation to 8,500 investors in the collapsed mini-bond provider, London Capital & Finance.

London Capital & Finance

Of this figure, FSCS has contacted more than 700 bondholders with details of their compensation since the lifeboat system provided its last update in December. The last instalment was paid under a government’s redress scheme to reimburse eligible LCF victims.

FSCS said it has yet to contact around 700 bondholders and expects all eligible customers to receive their offer within two months. The letters will include details on what they need to do to accept the offer, the payment terms and some calculation examples.

The government-funded scheme is available to all individual bondholders who have not already compensated by the FSCS. Per the proposed terms,  the government would pay 80 percent of the compensation, up to a maximum of £68,000, that LCF clients would have received if they were eligible for FSCS protection.

More becoming eligible for compensation

Those who still want to receive their principal investment in full can reject the offer when the FSCS contacts them by April 20, 2022. Approved claimants are expected to get their payments later this month.

Around 12,000 investors suffered major losses following the £236 million collapse of the mini-bond issuer in 2019. However, more than 3500 bondholders are still waiting to hear if they have any chance of getting their money back.

The Financial Services Compensation Scheme paid compensation to investors who relied on claims for misleading advice in the collapsed mini-bond provider. The fund said it was aware that some customers were advised by independent financial advisers to transfer existing assets to the firm that was put into special administration in May 2017.

To kickstart with the process, the FSCS reviewed almost a million pieces of evidence in order to determine which customers had been given misleading advice by LCF. It has also gained access to an additional 100,000 emails held within LCF’s email server, which extended the time frame to complete the process beyond the original deadlines

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<