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London Capital and Finance: Insolvency

Question for Treasury

UIN 141520, tabled on 21 January 2021

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 on

27 January 2021

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.

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