The Financial Services Compensation Scheme (FSCS) has blamed potential claims from the London Capital & Finance (LCF) mini-bond scandal for an additional £44m cost in its £649m 2020/21 budget.

The Financial Services Compensation Scheme has warned that it will reject many claims relating to the failed £236m mini-bond firm London Capital & Finance (LCF).

Mini-bond firm Blackmore Bonds has collapsed this week owing £45m to investors in a move that echoes the recent failure of £236m mini-bond firm London Capital & Finance.

Law firm Shearman & Sterling has applied for a judicial review into the FSCS’s handling of compensation for victims of the £236m London Capital & Finance mini-bond firm.