London Capital and Finance: Insolvency

(asked on 21st January 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Written Statement of 17 December 2020, HCWS678, how the Government compensation scheme for London Capital & Finance bondholders will be administered.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 27th January 2021

In my Written Ministerial Statement on 17 December 2020, I outlined the three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority’s (FCA) Complaints Scheme.

My statement also announced that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders . The Government will announce further details in due course.

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