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London Capital and Finance: Insolvency

Question for Treasury

UIN 149190, tabled on 4 February 2021

To ask the Chancellor of the Exchequer, when he plans to publish the (a) timetable for and (b) details of the compensation scheme for LCF bondholders.

Answered on

8 February 2021

I refer the Honourable Member to my answer given on 4 February to PQ UIN 148019. In my answer I explained that my Written Ministerial Statement of 17 December 2020 set out 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 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.

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