London Capital and Finance: Insolvency

(asked on 2nd February 2021) - View Source

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 by Dame Elizabeth Gloster, published in November 2020, whether the 11,625 London Capital & Finance bondholders will be offered compensation for their losses.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 4th February 2021

I refer the Honourable Member to my answer given on 28 January to PQ UIN 143081. The Written Ministerial Statement of 17 December 2020 set out 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.

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.

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