Government scheme to compensate London Capital & Finance investors after 'regulatory failings'

Mini-bond holders to receive 80% of initial investment

clock • 2 min read

The government has established a compensation scheme for investors who lost money after the collapse of London Capital & Finance (LCF) in 2019.

The government-funded scheme will provide 80% of LCF bondholders' initial investment up to a maximum of £68,000 and will be available to all LCF bondholders who have not already received compensation from the Financial Services Compensation Scheme (FSCS). John Glen, economic secretary to the Treasury, said: "It is an important point of principle that government does not step in to pay compensation in respect of failed financial services firms that fall outside the FSCS. "However, the situation regarding LCF is unique and exceptional." London Capital & Finance investors start legal ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Regulation

Investors warn FCA they will shun investment trusts if CCI regime goes ahead

Investors warn FCA they will shun investment trusts if CCI regime goes ahead

CCI regime

Linus Uhlig
clock 30 January 2025 • 3 min read
Lords committee to publish report into FCA name and shame 'shortly'

Lords committee to publish report into FCA name and shame 'shortly'

Hearing with FCA executives

Jen Frost
clock 23 January 2025 • 3 min read
FCA's plan to axe Consumer Duty board champions 'questionable'

FCA's plan to axe Consumer Duty board champions 'questionable'

Concerns over the role being axed too soon

Isabel Baxter
clock 20 January 2025 • 3 min read
Trustpilot