Given Surge’s reported turnover of £50m last year, the extent of Mr Surge’s involvement in LCF will no doubt be of particular importance to those investors unable to make a case to the FSCS.

Some might say that regulators did too little, too late, to protect the investors.

It is certainly proper that those involved in the wrongdoing which caused such devastating losses for investors should be held to account.

However, it is also perhaps welcome news that the regulatory bodies which are supposed protect people against such wrongdoing will also face investigations when they fail in their duties. 

The scandal is unlikely to end with LCF’s demise. For example, mini-bond investment firm Asset Life  - which has links to LCF - went into administration in July 2019, with administrators unable to locate several million in funds.

It had sold over 700 mini-bonds to some 500 investors. Even celebrity home-makeover guru Kevin McCloud recently hit the headlines when it emerged that some 200 investors in mini-bonds issued by his company now face significant losses.

It is clear that mini-bonds schemes have operated without effective regulation for some time.

The consequences for many investors are only now becoming clear.

While it will be cold comfort for those investors shouldering losses, it does appear that the government and the regulators are now determined to thoroughly investigate and - most importantly - learn hard lessons in the wake of the collapse of LCF and other mini-bond schemes.

Bambos Tsiattalou is the founding partner of Stokoe Partnership Solicitors, a criminal litigation practice