London Capital and Finance

Treasury written question – answered on 2nd July 2019.

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Photo of Laura Smith Laura Smith Shadow Minister (Cabinet Office)

To ask the Chancellor of the Exchequer, what steps his Department taking following the collapse of London Capital & Finance to ensure that mini-bond holders in Crewe and Nantwich will be properly compensated.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The administrators for London Capital & Finance (LCF) are currently estimating recoveries for investors affected by LCF’s failure.

The Financial Services Compensation Scheme (FSCS), as the compensation scheme of last resort, can only provide compensation for claims connected with certain types of regulated activities. They are working closely with LCF’s administrators and the Financial Conduct Authority (FCA) to understand more about LCF’s activities and whether there are grounds for compensation.

The FSCS is an independent non-governmental body. The FSCS carries out its compensation function within rules set by the Prudential Regulation Authority (PRA) and the FCA, who are also independent of Government.

If there are circumstances that give rise to potentially valid claims, the FSCS will communicate this on their website. They have invited LCF investors to register for updates on their website. More information on this can be found at https://www.fscs.org.uk/failed-firms/lcf/.

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