Investigation into London Capital & Finance launched

Financial Services | Legal | South East

An independent investigation into the circumstances surrounding the collapse of investment firm London Capital & Finance (LCF) and the Financial Conduct Authority’s (FCA’s) supervision of the firm has been formally launched.

The Economic Secretary to the Treasury, John Glen, has approved the FCA’s appointment of Dame Elizabeth Gloster to lead the investigation and has laid before Parliament the direction to initiate this work.

Glen has also announced that the Treasury will begin a wider policy review in response to the case, including a review of the regulatory regime for ‘mini-bonds’ and other non-transferrable securities.

The Economic Secretary, John Glen, said: “We urgently need to get to the bottom of the circumstances around the collapse of LCF. Dame Elizabeth will bring her vast experience and rigour to this important investigation, which will help ensure this type of thing doesn’t happen again.

“The Treasury will also be looking at how the current regime for these investments works, so customers are properly protected and the UK’s financial system can continue to be one of the safest in the world.”

Dame Elizabeth has had a distinguished career as a barrister and as a judge on the High Court and the Court of Appeal. As well as her current work as an international arbitrator, she has deep experience in commercial law and will bring expertise in financial services, insolvencies and regulation to the role.

She will look at how the FCA exercised its powers and whether it fulfilled its statutory objectives with respect to LCF. The FCA will report the findings of the investigation to the Economic Secretary, as well as the lessons it will take from those findings.

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  1. This company should never have received “regulated status” from the FCA!! This just highlight how useless these “Government Appointed Bodies” really are!!
    The Product information that was supplied to investors by London Capital & Finance. and given the “Green Light Approval” by the FCA ??
    Was proven within a “matter of weeks” by the appointed administrators to be a PACK OF LIES how on earth did the so called regulators miss this??
    In my case, the Financial Conduct Authority is 100% responsible for the investment i made with this company!!
    Prior to even considering any sort of investment I was advised to check the FCA website to ensure the company supplying the product was registered!!
    This is exactly what I did with regards to LC&F and it was confirmed that the company regulated and consequently safe to deal with??
    If only the regulator had actually looked at the company (which had been dealing since 2012) instead of just handed out a Licence to steal!!

  2. Does anyone know how much of the £236 million, was invested “AFTER” London Capital & Finance were given their “Regulated Status” from the FCA. Also if , the FCA receive any sort of “Monetary Reward” from a company once their have be given the “Regulated Status” If this is indeed the case?? that the FCA was receiving a payment from LCF in return for this accolade?? Surely it should be the “Serious Fraud Squad” that carry out the investigation into their incompetents and possible criminal activities (receiving payment for favour!!) Instead of an internal investigation by friends or family members as seems to be the present situation (yet another white-wash) as was experience with the MPs “EXPENSES SCANDAL” (they all received a huge pay rise, after being caught stealing!!) I recently, attempted to lodge an official complaint against the FCA with the Financial Ombudsman in view of how incompetent they had been with regards to their handling of the LCF regulation procedures (it only took the administrators one or two weeks to realise that the marketing information was a SCAM) This is what the FCA gave LCF their “Regulated Status” against.
    But too my amazement!!! The Financial Ombudsman WOULD NOT ACCEPT MY COMPLAINT. Who would have believed that one Government department would have closed ranks to protect another government department?? (what do these people have to do before they are held to account) £236 million has been stolen

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