Asked by: Alex Sobel (Labour (Co-op) - Leeds North West)
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.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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.
Asked by: Mohammad Yasin (Labour - Bedford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish a timescale for setting up and implementing the compensation scheme for the victims of the London Capital & Finance bondholder savings scandal.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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.
Asked by: Mohammad Yasin (Labour - Bedford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will compensate all victims of the London Capital & Finance bondholder savings scandal.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Statement of 17 December 2020, HCWS67, when his Department plans to establish a compensation scheme for London Capital & Finance bondholders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
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 - Paymaster General and Minister for the Cabinet Office
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.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Statement of 17 December 2020 HCWS678, whether the Government compensation scheme for London Capital and Finance plc bondholders will be available to all bondholders with no restrictions on the size or the timing of their investment.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, 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.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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.
As my statement also sets out, the Government welcomes the FCA’s commitment to implement all of Dame Elizabeth Gloster’s recommendations. The FCA’s response to the report details the changes it has made over several years and commits to accelerating this ongoing programme of reform through its Transformation Programme.
The FCA will report publicly on the progress of its Transformation Programme until such time as the recommendations from both reviews have been substantially implemented, as set out in the FCA CEO’s letter to me on 17 December 2020 which is available on gov.uk.
Asked by: Desmond Swayne (Conservative - New Forest West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made in setting up a compensation scheme for London Capital and Finance bondholders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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, including on timescales, the scheme’s administering body, and the eligibility of compensation, in due course.
Asked by: Deidre Brock (Scottish National Party - Edinburgh North and Leith)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the (a) timescale and (b) process is for compensation to London Capital and Finance bondholders under the Financial Conduct Authority's complaints scheme.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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, including on timescales, the scheme’s administering body, and the eligibility of compensation, in due course.
Asked by: Deidre Brock (Scottish National Party - Edinburgh North and Leith)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the timescale is for setting up the compensation scheme for London Capital and Finance bondholders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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, including on timescales, the scheme’s administering body, and the eligibility of compensation, in due course.