Financial Institutions: Insolvency

Treasury written question – answered on 6th August 2019.

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Photo of Lord Myners Lord Myners Non-affiliated

To ask Her Majesty's Government whether they have identified any features in common in the cases of London Capital and Finance, Lendy Limited and Collateral (UK) Limited that require a change in regulation, law or process.

Photo of Lord Young of Cookham Lord Young of Cookham Lord in Waiting (HM Household) (Whip), Lords Spokesperson (Cabinet Office)

London Capital and Finance plc (LCF) are a firm that issued mini-bonds, that entered administration on 30 January 2018. On 23 May, the Treasury formally directed the Financial Conduct Authority (FCA) to launch an independent investigation into the events at LCF, and approved the FCA’s appointment of Dame Elizabeth Gloster to lead it.

Lendy Limited and Collateral (UK) Limited are peer to peer (P2P) platforms authorised by the FCA and subject to FCA rules.

The operationally independent FCA’s investigation into the circumstances that led to the administration of Lendy is ongoing, and it would be inappropriate for Government to pre-empt its findings, or that of the investigation of the events at LCF.

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