Sunday 21 March 2021 11:30 am

London Capital & Finance savers left in the dark about compensation after losing millions

Savers who lost millions of pounds when mini-bond investment firm London Capital & Finance (LCF) fell into administration in 2019 are facing a longer wait for compensation after the City minister refused to confirm when the aid scheme will launch.

LCF collapsed in January 2019, impacting over 11,000 people who invested around £237m in the company through mini-bonds. 

Read more: BoE boss Andrew Bailey denies responsibility for London Capital & Finance collapse

They are non-transferable assets that let retail investors invest in a company, but can be very risky.

Investors were told in December that the Treasury would set up a scheme to help repay some of their lost savings.

However, the scheme has not yet been launched  and the City minister has refused to commit to a start date, the Sunday Telegraph reported.

John Glen, economic secretary to the Treasury, told the newspaper that the compensation scheme is at the top of his 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.”

Andrea Hall, a spokesperson for the LCF bondholders, said: “A carrot had been dangled but three months on, there has been no communication, no information, and it appears that no one is taking responsibility.”

Read more: FCA failed to properly regulate London Capital & Finance, inquiry finds