PIMFA welcomes Government compensation for LC&F bondholders

19 April 2021 

PIMFA welcomes Government compensation for LC&F bondholders

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, welcomes the announcement today that the Government will compensate thousands of London Capital and Finance (LC&F) bondholders, as well as the announcement of a consultation into bringing the issuance of mini-bonds into the regulatory perimeter.

Tim Fassam, Director of Government Relations and Policy at PIMFA, commented: “It is right that the Government is stepping in today to provide support to the thousands of bondholders who have been let down by London Capital and Finance, as well as the regulatory system, which was designed to protect them.

“While we welcome this move, we have always been clear that any consumer who is in need of compensation has, by definition, received a poor outcome that it would have been better to avoid in the first place.

“To this end, we welcome moves by the Government to consult on bringing the issuance of minibonds within the regulatory perimeter; a move which, in combination with the promotion of unregulated investments becoming a regulated activity, will reduce consumer harm in future.”

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Notes for Editors:

About PIMFA – The Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide investment management, investment services and advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
• PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
• PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
• PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, the Future of Supervision and the FSCS levy – read more.
• PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
• Further information can be found at www.pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

• Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376 / +44 (0) 7843 903258
• Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 / +44 (0)7979 493225