HM Treasury (HMT) have today announced details of the independent investigation into London Capital & Finance (LC&F) to be commissioned by the Financial Conduct Authority (FCA). HMT has agreed to the appointment of Dame Elizabeth Gloster by the FCA to conduct the investigation.
On Thursday March 28, the FCA Board decided that there should be an investigation by an independent person into the issues raised by the failure of LC&F. FCA Chair Charles Randell wrote to the Economic Secretary to the Treasury, John Glen MP, to inform him of this decision.
Commenting on the announcement, Charles Randell, FCA Chair said:
This investigation will establishwhat happened with LC&F and whether further changes are required. It will support the broader review of minibond regulation. Dame Elizabeth Gloster brings independence and extensive experience to the task, and the FCA will ensure that she has all the access and support she needs to conclude her work as quickly as possible.
The FCA will also contribute to the other reviews announced by the HMT in relation to minibonds and similar securities. This work is important to ensure that the scope and form of regulation provides effective protection for consumers.
Background
- The Direction
- 1st April statement on LC&F
- 2nd April letter to Rt Hon Nicky Morgan MP Chair of the Treasury Select Committee on LC&F
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this, it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
