Source · Select Committees · Treasury Committee
Recommendation 29
29
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.
Paragraph Reference:
159
Government Response
Not Addressed
HM Government
Not Addressed
The Treasury is progressing work on the LCF compensation scheme rules, in close collaboration with the Financial Services Compensation Scheme (FSCS) who will administer the scheme. The FSCS is committed to ensuring that payments are made to all eligible LCF bondholders within 6 months of securing Royal Assent of the Bill currently before Parliament. The Treasury is ensuring the Government scheme is coordinated with the administration process and the FCA complaints scheme, to the best extent possible. The design and operation of the complaints scheme is a matter for the independent regulators, who are required by law to maintain that scheme. The Government acknowledges the challenges the FCA has faced in its handling of complaints in recent times, which the FCA itself recognises have seen its complaints handling performance fall short of expectations for some complainants. The Government notes the FCA’s improvement plans in this area, and the substantial investment it has made to deliver those plans. Further details are provided in the FCA’s response to the Complaints Commissioner’s Annual Report and Accounts 2020/21. The Government will continue to monitor the delivery of those improvements.