The Financial Services Compensation Scheme will consider claims on default structured product provider Merchant Capital.
The FSCS said it had received a number of claims against Merchant Capital in relation to the charges levied on the payouts of certain investments by Reyker Securities, which took over administration of a number of plans when Merchant went into administration.
The lifeboat fund says it will have a decision on any compensation by the end of November.
Merchant Capital was declared in default in April 2014 after going into voluntary liquidiation. It owed more than £1.5m to creditors.
Reyker Securities became responsible for the administration of the investments and income payments after Merchant Capital defaulted, and levied a charge on maturity payments for some clients.
“FSCS considers that in certain circumstances Merchant Capital is liable to investors for certain costs where Merchant Capital contracted with investors that no additional costs would be incurred during the lifetime of the investment for standard administration and safeguarding of the investments,” says a statement from the FSCS.
Reyker initially charged individuals £15 to £25 on their delayed income payments, but it later emerged around 12,000 Merchant Capital investors faced hundreds of thousands of pounds in charges.
In October 2014 two clients of Reyker submitted a test case to the FSCS for compensation.