Investors in collapsed mini-bond provider London Capital & Finance (LCF) are still in the dark about when they will receive compensation, after an MP refused to confirm when the Treasury aid scheme will launch.
More than 11,000 LCF investors were left with £237m in losses when the mini-bond provider entered into administration in January 2019.
In December, economic secretary to the Treasury John Glen said that the Treasury would establish a compensation scheme.
However, the scheme has not launched yet, investors have not heard anything more and Glen has now said he cannot give a date when it will be introduced.
He told The Daily Telegraph the LCF compensation scheme was “right at the top of my agenda”.
“I want to do it as soon as I can,” he said. “Clearly, it’s been three months since I put down a written ministerial statement, that’s a significant amount of time. I want to move it forward, and I will do so as soon as I possibly can. But I can’t give a categorical assurance on a date today.”
In September, LCF bondholders received a boost in their fight for greater compensation when they were given the go-ahead for a judicial review under the Financial Services Compensation Scheme (FSCS).
After launching the review in March, the bondholders received the green light for their case to be taken to court following a judge refusing the FSCS’s request for the case to be dismissed.
The investors were seeking to quash the FSCS’s compensation decision and were looking to another decision and more compensation.
This followed the FSCS saying in August it had paid more than £20m in compensation to those LCF investors it believes received misleading advice from LCF.