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Financial Services Update

17 December 2020

Proposing MP
John Glen Con
Salisbury
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

Issue Summary

The statement provides an update on the investigation into London Capital & Finance plc (LCF) and announces a compensation scheme for affected bondholders.

Action Requested

The Government has laid before Parliament Dame Elizabeth Gloster’s report, which concludes that the FCA did not effectively supervise LCF. The Treasury will launch a consultation in the New Year on regulating non-transferable debt securities and set up a compensation scheme for LCF bondholders.

Key Facts

  • LCF was an FCA authorised firm offering mini-bonds to retail consumers, impacting 11,625 people who invested around £237 million.
  • Dame Elizabeth Gloster’s report was delivered on 23 November 2020 and concludes that the FCA did not effectively supervise and regulate LCF.
  • The Treasury will launch a consultation in the New Year on the regulation of non-transferable debt securities.
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