Compensation paid by FSCS to LCF customers tops £20m

Maria Nikolova

The Financial Services Compensation Scheme has now issued 1,295 decisions and paid out just over £20 million in compensation to London Capital & Finance customers.

The UK Financial Services Compensation Scheme (FSCS) today provided an update to customers of London Capital & Finance (LCF).

The Scheme has now issued 1,295 decisions and paid out just over £20 million in compensation to LCF customers. This represents close to a 50% increase in the amount the Scheme has paid out since last month.

FSCS says it still has a lot of claims to review, but it would like to reassure LCF customers that this remains a high priority for it and it is working to pay customers as quickly as possible.

One of the things FSCS is doing to help speed up this process is increasing the size of the specialist team it set up to review LCF claims by nearly 80%. Because of the amount of data FSCS needs to review, it does not expect to complete this process before the end of December.

In the meantime, the independent investigation into the FCA regulation of LCF is now facing further delay. The latest correspondence between Dame Elizabeth Gloster and Charles Randell reveals a revised timetable for completion of the investigation. Assuming there are no other significant developments, the report should be delivered on or before Monday, 23 November 2020.

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