Investor compensation scheme for failed minibond issuer LC&F goes live

Mark Battersby
clock • 2 min read

The UK's HM Treasury has launched a compensation scheme to pay out an estimated £120m to investors in London Capital & Finance, which impacted 12,000 clients in the wake of a minibond scandal. The government department said that the scheme would compensate bondholders by up to 80% of their investment in LC&F, to a maximum of £68,000 each. The company collapsed in January 2019, leaving investors who bought its high-interest debt securities, known as minibonds, with a £236m loss. The compensation scheme launched on 3 November 2021 and the Financial Services Compensation Scheme (FSC...

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