FSCS says it has now concluded its investigations into the firm's practices.
The probe was said to have focused on the levels of due diligence Lifetime carried out prior to allowing customers to make specific investments under their pensions. FSCS has determined that protected claims exist against the firm.
It says claims already submitted against Lifetime will “shortly be passed to our claims processing teams for assessment.
Around 400 customers have been affected.
A spokesman said: “Customers who have not yet made a claim relating to Lifetime can do so via our online claims service at www.fscs.org.uk selecting the ‘Check if you can claim' button, and then following the instructions.
“Customers can also call FSCS on 0800 678 1100. FSCS will keep customers updated about Lifetime via our website at www.fscs.org.uk/failed-firms/lifetime.”