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.
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.
1. Briefing paper on the Bill
27/05/2021 - Bill Documents
Found: May 2021
Capital and Finance and
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
Found: London Capital & Finance Compensation scheme
The London Capital and Finance Compensation Scheme
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/
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