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.
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.”