Independent investigation into the FCA’s supervision of London Capital & Finance
This collection brings together details and updates from HM Treasury on the independent investigation into the Financial Conduct Authority’s supervision and regulation of London Capital & Finance, and related matters.
In April 2019 the Economic Secretary wrote to the Financial Conduct Authority (FCA) to set out that he would order an investigation into the FCA’s supervision and regulation of London Capital & Finance (LCF), using Treasury powers under section 77 of the Financial Services Act 2012. Section 77 gives the government wide ranging powers to direct an investigation. This followed a decision by the FCA Board where they agreed that a statutory investigation was in the public interest and requested the Treasury direct the FCA to carry out an investigation.
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 was formally launched on Thursday 23 May 2019. The Economic Secretary to the Treasury, John Glen, approved the FCA’s appointment of Dame Elizabeth Gloster to lead the investigation and laid before Parliament the direction to initiate this work. This independent investigation is separate to criminal and regulatory investigations into the failure of LCF by the Serious Fraud Office (SFO) and FCA.
On 23 November 2020, Dame Elizabeth, in accordance with the revised timeline, delivered her final written report to the FCA.
On 19 April, the government announced further details on its compensation scheme for LCF bondholders. The government also published a consultation on the regulation of non-transferrable debt securities on the same day.
LCF Compensation Scheme
The LCF Compensation Scheme will provide compensation to eligible bondholders who lost money following the collapse of LCF.
Regulation of non-transferable debt securities (mini-bonds): a consultation
The government is consulting on proposals to bring the issuance of non-transferable debt securities (‘mini-bonds’) within the scope of financial services regulation. This consultation closes at midday on 21 July 2021.
Outcome of investigation into FCA’s Supervision and Regulation of LCF
Publication of the report of the Independent Investigation into the Financial Conduct Authority’s regulation and supervision of London Capital & Finance plc and the FCA’s response.
Update on investigation into LCF
Exchange of letters relating to the timing of the independent investigation into London Capital & Finance plc (LCF).
HMT policy reviews into the regulation of the investment products issued by London Capital & Finance (June 2019)
Letter from the Economic Secretary to the Treasury Select Committee setting out the HMT’s policy reviews.
Launch of the investigation into LCF (May 2019)
The Economic Secretary’s Direction to the FCA to launch the independent investigation.
Last updated 28 April 2021 + show all updates
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Added: 'LCF Compensation Scheme’ subsection' and 'Regulation of non-transferable debt securities (mini-bonds): a consultation'
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Updated with Outcome of investigation into the FCA’s regulation and supervision of LCF.
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First published.