The Financial Services Compensation Scheme (FSCS) is administering the compensation scheme.

The FSCS expects the scheme to open soon.

The FSCS expects compensation payments to begin later this month.

Some 11,625 investors lost savings worth a total of £237m when LCF collapsed with the majority so far not compensated by the FSCS due to questions about whether their investments were regulated or not.

In March LCF investors were given the right to have their case heard in the Court of Appeal after a judge decided not to overturn the FSCS's decision only to compensate a minority of LCF investors.

Around 97% of all LCF bondholders invested less than £85,000 and therefore will not reach the compensation cap under either the government compensation scheme or the FSCS.

The Government expects to pay out around £120m compensation to around 8,800 people in total.

Bondholders do not need to contact the FSCS to received compensation.

The FSCS also warned LCF bondholders to be wary of any contact promising compensation for a fee as it is likely to be a scam.

Legislation for the Government’s compensation scheme for bondholders of LCF successfully passed through Parliament and received Royal Assent on 20 October.

The Government compensation scheme has its own dedicated web page at www.gov.uk/LCF-compensation-scheme.