London Capital and Finance: Compensation

Treasury written question – answered on 1st July 2021.

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Photo of John McNally John McNally Shadow SNP Spokesperson (Environment)

To ask the Chancellor of the Exchequer, if he will take steps to ensure that all LCF bondholders will be compensated.

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

I know that this has been a very difficult time for LCF bondholders. The Government has announced that it will establish a compensation scheme that will provide 80% of LCF bondholders’ principle investment up to a maximum of £68,000. The scheme will be available to all LCF bondholders who have not already received compensation from the Financial Services Compensation Scheme (FSCS).

The FSCS will administer the scheme. They are committed to ensuring that payments are made to all eligible LCF bondholders within 6 months of the Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill securing Royal Assent. This Bill was brought forward by the Government at the earliest possible opportunity and was introduced on 12 May 2021.

I hope that the compensation offered by the Government scheme will offer some relief to the distress and hardship suffered and provide closure on this difficult matter.

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