London Capital and Finance: Insolvency

(asked on 30th June 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 4 February 2021 to Question 148019 on London Capital and Finance: Insolvency, what progress the Government has made on setting up a compensation scheme which will assess whether there is justification for further compensation payments in certain circumstances for some LCF bondholders.


Answered by
John Glen Portrait
John Glen
Economic Secretary (HM Treasury)
This question was answered on 5th July 2021

I know that this has been a very difficult time for LCF bondholders. The Government has announced that it will establish a compensation scheme that will provide 80% of LCF bondholders’ principle investment up to a maximum of £68,000. The scheme will be available to all LCF bondholders who have not already received compensation from the Financial Services Compensation Scheme (FSCS).

The Treasury is working to finalise the details of the scheme and guidance for bondholders on their next steps. The Government will provide further details on how the scheme will operate in due course. Bondholders do not need to do anything at this stage.

The Financial Services Compensation Scheme (FSCS) will administer the Scheme. They are committed to ensuring that payments are made to all eligible LCF bondholders within 6 months of the Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill securing Royal Assent. This Bill was brought forward by the Government at the earliest possible opportunity and was introduced on 12 May 2021.

I hope that the compensation offered by the Government scheme will offer some relief to the distress and hardship suffered and provide closure on this difficult matter.

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
Recent Documents related to London Capital and Finance: Insolvency

1. Briefing paper on the Bill
27/05/2021 - Bill Documents

Found: May 2021 Compensation (London Capital and Finance and Fraud Compensation Fund) Bill 2021 -22

2. London Capital & Finance
18/04/2019 - Parliamentary Research

Found: BRIEFING PAPER Number 8550, 18 April 2019 London Capital & Finance By Federico Mor Contents: 1. Mini-bonds

3. London Capital & Finance Compensation scheme
19/04/2021 - HM Treasury
- View source

Found: London Capital & Finance Compensation scheme The London Capital and Finance Compensation Scheme

4. London Capital & Finance Compensation scheme
19/04/2021 - HM Treasury
- View source

Found: 1 Written Ministerial Statement London Capital & Finance On 17 December 2020 in a Written

5. Bill 009 EN 2021-22
12/05/2021 - Bill Documents

Found: Bill 9ŒEN 58/ 2 COMPENSATION (LONDON CAPTIAL & FINANCE PLC AND FRAUD COMPENSATION FUND) BILL EXPLANATORY

Latest Documents
Recent Speeches related to London Capital and Finance: Insolvency

1. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill (Second sitting)
15/06/2021 - Public Bill Committees

1: Before they sit down, they will need to indicate whether they wish to withdraw the amendment or seek a decision - Speech Link
2: considers the circumstances and impact of the payment of compensation to the customers of London Capital & Finance - Speech Link
3: impact of the payment of compensation to the customers of London Capital & Finance plc under this section - Speech Link

2. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill
19/10/2021 - Lords Chamber

1: to step in to ensure a fair outcome for London Capital & Finance investors and victims of pension liberation - Speech Link

3. Financial Services Update
17/12/2020 - Written Statements

1: FCA’s regulation and supervision of London Capital and Finance plc (LCF) and the FCA’s response.This - Speech Link

4. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill
08/06/2021 - Commons Chamber

1: relates to a new Government scheme to compensate London Capital & Finance bond holders who lost money - Speech Link
2: capacity of the Financial Conduct Authority. Is he certain that the FCA now has the powers and, crucially - Speech Link
3: Government’s approach to setting up a compensation scheme for London Capital & Finance bond holders who lost - Speech Link

5. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill
22/09/2021 - Commons Chamber

1: impact of the payment of compensation to the customers of London Capital & Finance plc under this section - Speech Link

Latest Speeches
Recent Questions related to London Capital and Finance: Insolvency
1. London Capital and Finance: Insolvency
asked by: Tulip Siddiq
25/01/2021
... what steps he is taking to (a) compensate London Capital and Finance bondholders and (b) reform Financial Conduct Authority regulation to prevent future regulatory failure.

2. London Capital and Finance: Insolvency
asked by: Dan Jarvis
01/02/2021
... what progress has been made in compensating the bondholder victims of London Capital & Finance plc.

3. London Capital and Finance: Insolvency
asked by: Desmond Swayne
21/01/2021
... what progress he has made in setting up a compensation scheme for London Capital and Finance bondholders.

4. London Capital and Finance: Insolvency
asked by: Deidre Brock
21/01/2021
... what the (a) timescale and (b) process is for compensation to London Capital and Finance bondholders under the Financial Conduct Authority's complaints scheme.

5. London Capital and Finance: Insolvency
asked by: Deidre Brock
21/01/2021
... what the timescale is for setting up the compensation scheme for London Capital and Finance bondholders.

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