Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill

James Grundy Excerpts

2nd reading
Tuesday 8th June 2021 Commons Chamber

[James Grundy (Leigh) (Con)]

I thank the Minister and the Economic Secretary to the Treasury for bringing this Bill to the House. I welcome this Second Reading debate and am pleased that the Government are making tangible progress. I also thank Dame Gloster for her report and welcome the fact that the Government have accepted its nine recommendations. My contribution will be brief and I hope that, given the time constraints, Members will forgive me for not taking interventions.

Will my hon. Friend the Economic Secretary clarify whether bondholders will be required to surrender all their bonds to qualify for the Government’s scheme? If that is the case, some of my constituents who invested considerable sums in the scheme will be forced to surrender all their bonds, regardless of the amount invested, to receive the maximum £68,000 of compensation offered by the Government, as opposed to their being able to surrender a portion of their bonds to gain access to the Government’s compensation scheme while still potentially being able to receive further dividend payments direct from the administrators, thereby ensuring that their loss is reduced. My constituents need clarity and it would be most welcome if the Department would consider that. I recently wrote to my hon. Friend about this matter and very much look forward to hearing his response.