FSA will not pay compensation for LSE crash

Labour MP Jim Cousins will receive a frosty reception at the Financial Services Authority (FSA) if he demands compensation for London Stock Exchange (LSE) traders caught in the April 5 meltdown.

Cousins this week insisted at an all-party committee of MPs, that the LSE should take partial responsibility for its eight-hour systems crash on 5 April this year.

He told silicon.com: "The buck has clearly been passed to the FSA and that is something the select committee clearly won't let slip."

But an FSA spokesman said today: "This was such an unusual event, thankfully, that it's not part of our remit. Compensation is a matter for the LSE to decide and if investors have an issue, they can talk to their broker."

He added the LSE had already revised its IT management and broadened contingency plans to ensure it never happens again.