The FSCS can pay out up to £50,000 per person in compensation to investment customers so the total compensation could reach billions if all customers are awarded the full amount.

The FSCS announced earlier this month that advisers will face a £40m interim levy this year for claims regarding firms such as Keydata but this did not include MF Global claims.

However, as MF Global was part of the investment intermediary sector this will mean further costs for advisers.

The scheme said it would take into account any dividend payments made to customers by special administrators KPMG which announced on 10 February it would start making dividend payments in relation to client money claims.

Richard Heis, joint special administrator of MF Global UK and restructuring partner at KPMG, said: “We want to start returning client money as soon as possible and have therefore constructed an interim distribution model, which has allowed us to start making partial repayments to clients with agreed claims.”

The claim forms have so far only been sent to private customers with individual accounts, customers with joint accounts and those not already contacted by the FSCS will be contacted by 17 February.

Customers with trust and corporate accounts will be sent a form by the end of February.