Question reference: S5W-23293
- Asked by: Alexander Burnett, MSP for Aberdeenshire West, Scottish Conservative and Unionist Party
- Date lodged: 20 May 2019
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Current status: Answered by Kate Forbes on 28 May 2019
Question
To ask the Scottish Government what support it will offer people in Scotland who lost money due to the collapse of London Capital & Finance to seek compensation.
Answer
This is a stressful time for all who are affected by the collapse of London Capital and Finance (LC&F). The regulation of financial services, including the services your constituent has highlighted, is a reserved matter to the UK Government. Consequently, Scottish Ministers are unable to intervene in the practices employed by financial services companies or in individual complaints.
The Financial Conduct Authority (FCA) has agreed with HM Treasury that there should be an investigation by an independent person into the issues raised by the failure of LC&F and whether the existing regulatory system adequately protects retail purchasers of mini-bonds from unacceptable levels of harm.
The FSCS is working closely with the administrators and the FCA to try to establish whether LC&F might have carried out any other regulated activity for which they could compensate customers. The FSCS investigation is focusing on whether there was any regulated advising, arranging or other activities that may trigger compensation.