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Dame Elizabeth Gloster will lead the investigation into LCF and how the FCA exercised its powers in relation to it
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The findings will be reported to HM Treasury
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HM Treasury will also review the regulation and marketing of the kinds of retail investment products issued by LCF
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 today (Thursday 23 May).
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. Mr 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.
