Source · Select Committees · Treasury Committee
Recommendation 29
29
Accepted in Part
Paragraph: 159
We note that there are other ongoing discussions and channels by which LCF bondholders can...
Recommendation
We note that there are other ongoing discussions and channels by which LCF bondholders can seek compensation, such as through the FCA complaints scheme 52 The Financial Conduct Authority’s Regulation of London Capital & Finance plc and through LCF administrators. The Treasury and the FCA should ensure that these discussions and channels are coordinated to the best extent possible, in order to prevent any detriment to customers. The Government should ensure that it is satisfied that the FCA’s complaint scheme is working appropriately. In our work scrutinising the FCA, we will consider the results of the ongoing consultation on the regulators’ complaints scheme.
Government response summary AI-generated
The Treasury is ensuring the LCF compensation scheme is coordinated with the administration process and the FCA complaints scheme. While acknowledging issues with the FCA's complaints handling, the government notes the FCA's improvement plans and commits to monitoring their delivery, stating the scheme's design is a matter for independent regulators.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
159
Government Response
Accepted in Part
HM Government · verbatim extract
Accepted in Part
We will continue to coordinate with the Treasury on our respective communications with bondholders. The administrators also play an important role and will need to work closely with the FSCS given the Government’s plans for FSCS to administer the LCF Compensation Scheme; this will help to ensure a coordinated approach for LCF bondholders. We will continue to ensure that anyone contacting the FCA about the government’s LCF 15 UK Prospectus Regime: a consultation, HM Treasury, published 1 July 2021 16 Evaluation of the impact of the Retail Distribution Review and the Financial Advice Market Review, Financial Conduct Authority, published December 2020 Second Special Report of Session 2021–22 19 Compensation Scheme is pointed to the relevant available information and the FSCS where appropriate. We will continue to work with Treasury once the government’s scheme is fully operational to ensure bondholders can contact the relevant organisation. As set out on 29 June,17 we, along with the PRA, intend to conclude the Complaints Scheme Consultation by the end of the year, and will take into account the views of the Committee and other interested parties.
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