To ask the Chancellor of the Exchequer what steps are being taken to (a) compensate former customers of the money transfer company First Solution and (b) establish a new regulatory framework for the operation of such companies. (169269)

The Government sympathize with those affected by the closure of First Solution. The Companies Investigation Branch, within the Department for Business, Enterprise and Regulatory Reform, is carrying out an examination of the facts. An agreement has been reached on the sale of the company’s assets which, in the opinion of the official receiver, will provide the best possible outcome for its creditors. In the context of the agreement reached on the Payment Services Directive (PSD) in April 2007, the Government have committed to bring money transfer companies into regulation from November 2009. The Treasury will launch a consultation on the implementation of the PSD before the end of the year.