Government scheme to compensate London Capital & Finance investors after 'regulatory failings'

The government-funded scheme will provide 80% of LCF bondholders' initial investment up to a maximum of £68,000 and will be available to all LCF bondholders who have not already received compensation from the Financial Services Compensation Scheme (FSCS). John Glen, economic secretary to the Treasury, said: "It is an important point of principle that government does not step in to pay compensation in respect of failed financial services firms that fall outside the FSCS. "However, the situation regarding LCF is unique and exceptional." He added that LCF's business model had been "hi...