Arrangements for a scheme to compensate investors in a failed financial services firm have cleared the Commons.
London Capital & Finance (LC&F) went into administration in January 2019, leaving 11,600 investors facing losses of £237 million.
Measures in the Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill include arrangements for a compensation scheme for customers who were not eligible for redress from the Financial Services Compensation Scheme (FSCS).
Work and pensions minister Guy Opperman told the Commons: “It is important to avoid creating the misconception that Government will stand behind all bad investments in the future where FSCS does not apply.
“The Government will establish a scheme based on the level of FSCS compensation capped at £85,000 under the FSCS.
“We have looked at the issues carefully and are satisfied that the individual circumstances surrounding LC&F are completely unique.”
He added: “There are…