Asked by: Desmond Swayne (Conservative - New Forest West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will compensate investors for losses at London Capital and Finance.
Answered by John Glen
Investors affected by the failure of London Capital & Finance (LCF) are unlikely to have access to the Financial Services Compensation Scheme (FSCS) in this case. However, it is for the FSCS to determine this as it is an independent body from both HM Treasury and the Financial Conduct Authority.
The FSCS’ current assessment is that LCF’s activities are not FSCS-protected, which means LCF’s investors will not be eligible to claim for compensation from the FSCS.
However, the FSCS is working closely with the administrators to understand more about LCF’s activities. If there are circumstances that give rise to potentially valid claims, the FSCS will begin to accept claims against LCF and communicate this on their website.