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

Jim Shannon Excerpts

2nd reading
Tuesday 8th June 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I, too, welcome the Bill and very much look forward to its moving forward. Having read the background information and looked back on what happened, I have a couple of questions, although I support the Bill and think it is important that we do so.

The FCA found in the case of London Capital & Finance that it had been

“misleading, not fair and unclear”

in its advertising, and that there had been

“serious concerns about the way the firm was conducting its business”.

For me, it is clear that the FCA at that time failed the investors. At the same time, Dame Elizabeth’s report concluded that

“the FCA did not discharge its functions in respect of LCF in a manner which enabled it effectively to fulfil its statutory objectives.”

We are where we are tonight, and we have a Bill that I hope will address those issues for this particular group of investors. I just ask the Minister whether—the hon. Member for Harrow West (Gareth Thomas) referred to this—in other cases where people have invested similarly and indiscretions and fraud have taken place, they too will be able to benefit from this legislation.

I welcome clause 2, which will give the Secretary of State the power to make a loan to the board of the PPF to enable the payment of compensation to eligible occupational pension schemes following the High Court judgment. That is an essential component of the legislation, as is the fact that it entails the loan being repaid by the fraud compensation fund levy over a period currently estimated to be between 10 and 15 years. We must protect, if we can, the pension schemes and investors through that process and give them peace of mind. The protection of those pensioners is increasingly important to me, as it is to every hon. Member who has spoken in the debate and to the Minister.

I will pose one last question to the Minister, if I may, about those investors who may have passed away without being able to take advantage of this legislation. Will the families of the deceased—those who are no longer here —qualify for the compensation as well?