The Financial Services Compensation Scheme (FSCS) has revealed the London Capital & Finance (LCF) redress scheme will close on 31 October 2022.
The FSCS has been administering the scheme on behalf of the UK government since it was rolled out. International Adviser announced in August that the FSCS was planning on ending the scheme.
Compensation has so far been handed to 99.5% of eligible victims with a total of £115m ($130m, €131m) paid out.
For the remaining 0.5%, the FSCS said “there are a small number of claims that we have not been able to pay where we have requested information multiple times but had no reply, or where the bondholder has passed away and we have to been able to locate their next of kin”.
The FSCS added that some exceptional circumstances might apply past the deadline, as the lifeboat scheme may be able to pay redress, but “it may take us longer to process these claims and pay compensation”.
One of the LCF bondholders told International Adviser: “It would be a tragedy if bondholders who qualify miss the deadline after the sheer amount of hard work by many people that has gone into getting to the point of compensation.”
For those who have already received a cheque, the FSCS said they will be able to cash it after 31 October 2022, as long as they do so within six months of the issue date.