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London Capital and Finance: Insolvency

Question for Treasury

UIN 141575, tabled on 21 January 2021

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 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.

Answered by

Treasury