London Capital and Finance: Insolvency

Treasury written question – answered on 21st January 2021.

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Photo of Desmond Swayne Desmond Swayne Conservative, New Forest West

To ask the Chancellor of the Exchequer, what progress he has made in setting up a compensation scheme for London Capital and Finance bondholders.

Photo of Deidre Brock Deidre Brock Shadow SNP Spokesperson (Wales), Shadow SNP Spokesperson (Environment, Food and Rural Affairs)

To ask the Chancellor of the Exchequer, what the (a) timescale and (b) process is for compensation to London Capital and Finance bondholders under the Financial Conduct Authority's complaints scheme.

Photo of Deidre Brock Deidre Brock Shadow SNP Spokesperson (Wales), Shadow SNP Spokesperson (Environment, Food and Rural Affairs)

To ask the Chancellor of the Exchequer, what the timescale is for setting up the compensation scheme for London Capital and Finance bondholders.

Photo of Deidre Brock Deidre Brock Shadow SNP Spokesperson (Wales), Shadow SNP Spokesperson (Environment, Food and Rural Affairs)

To ask the Chancellor of the Exchequer, whether his Department is planning to impose any restrictions on compensation to bondholders under the London Capital and Finance compensation scheme.

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

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, including on timescales, the scheme’s administering body, and the eligibility of compensation, in due course.

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