Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Report of the Independent Investigation into the Financial Conduct Authority’s Regulation of London Capital & Finance plc, published 23 November 2020, whether the Government compensation scheme announced in response to that report will contain bondholder restrictions (a) on investment size, (b) on investment timing or (c) linked to bondholders' individual circumstances.

I refer the Honourable Member to my answer given on 21 January to PQ UIN 138838. As set out in my Written Ministerial Statement of 17 December 2020, there are 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.

The Written Ministerial Statement also set out 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.